coke’s new take on voice - modern materials handling · 16 coke’s new take on voice. to...

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® SPECIAL REPORT 2011 Industry Outlook: Optimism shines 24 + INDUSTRY OUTLOOK WEBCAST March 31 mmh.com/2011outlook BIG PICTURE Get going with mobility 30 EQUIPMENT 101 SERIES How AS/RS works 36 mmh.com PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING March 2011 Coke’s new take on voice 16 Mike Jacks, senior manager of logistics systems, Coca-Cola Refreshments U.S.A.

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Page 1: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

reg

SPECIAL REPORT

2011 Industry OutlookOptimism shines 24 + INDUSTRY OUTLOOK WEBCAST

March 31 bull mmhcom2011outlook

BIG PICTURE

Get going with mobility 30EQUIPMENT 101 SERIES

How ASRS works 36

reg

m m h c o m

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION WAREHOUSING AND MANUFACTURING

March 2011

Cokersquos new take on voice 16

Mike Jacks senior manager of logistics systems Coca-Cola Refreshments USA

MMH1103_Coverindd 1 3911 357 PM

What is ldquoGoods to Personrdquo

ldquoGoods to personrdquo means the order picker stays in one place

and the system brings the ldquogoodsrdquo or SKUs (stock keeping

units) to the person The SKU is picked and then sent back to

a storage location The basic system components consist of a

storage medium for the product inventory a conveyance method

to bring the SKUs to the pick station an ergonomic workstation

and software to control flow

Benefits of Goods to Person Order Fulfillment

Eliminate picker travel time use less labor ndash Order pickers

do not need to roam the warehouse walking to and from the

dedicated pick faces Travel time is the largest time component

of a traditional order picker in a ldquoperson to goodsrdquo arrangement

By minimizing this time component productivity is increased and

labor to operate the facility is reduced

Omit the dedicated pick face ndash Typically a ldquogoods

to personrdquo system involves staging the inventory in an

automated device such as an automated storage amp retrieval

system (ASRS) Think of it as a black box where all the

SKUs are stored a SKU is retrieved when it is required

This omits the need for SKU slotting and ongoing re-slotting

management (moving the pick faces as activity rates change)

that is typical of a ldquoperson to the goodsrdquo warehouse

Reduce system footprint ndash The space required for a

ldquogoods to personrdquo design is less than conventional ldquoperson

to goodsrdquo If the storage medium is high density significant

space savings can be achieved A typical footprint may be

30 to 50 less than conventional storage

Product Security ndash When the product inventory is placed

into a high density automated system (ASRS) it is secure

and not available for access by your staff Product security is

important to maintain inventory accuracy reduce theft and

assure first in first out strategies

Ergonomic workstations ndash The pick stations can be

designed for employee comfort Working heights range

of motion and environment (lighting temperature) can be

optimized for the employee

Speed in order selection ndash The pick station design allows

high worker productivity Since there is little or no travel

time and the item to be picked is ergonomically served to

the worker high rates of order selection are achieved Most

operations obtain rates in the 500 to 1000 lines picked per

hour per operator

Accuracy ndash Order picking using a ldquogoods to personrdquo station

is more accurate because operators are typically handling

one SKU at a time making errors less likely Most ldquogoods

to personrdquo stations utilize put-to-light technology to indicate

quantity and location to put the item further enhancing

accuracy

High utilization workstations ndash Work flows into the pick

station smoothly and consistently Order pickers are highly

utilized since they do not need to wait for work Worker

productivity is not affected by the structure typical of a

traditional pick module (high activity in one zone little activity

in another zone pace issues in a pick-and-pass environment

etc)

Sequencing ndash When building a customer order a precise

sequence of SKUs can be achieved For example items can

be presented to the order selector by weight (heavy to light)

To learn more about Goods to Person Order Fulfillment visit ProMat booths 3603 amp 3612 or wwwdematicus

or call 1-877-725-7500

Fostering Supply Chain Education

DEMATICUNIVERSITY

S U P P LY C H A I N E D U C AT I O N A L S E R I E S D E V E L O P E D B Y D E M AT I C

Maximize Warehouse Productivity with ldquoGoods to Personrdquo Method

Visit Us at Booths 3603 amp 3612

MMH0311_adsindd 2 3911 904 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 3

The Conveyor equipmenT manufacturers Association (CemA wwwcemanetorg) reported that its December 2010 Booked orders index was 159 The index in December is up 32 points or 25 from november 2010rsquos index of 127 The December 2010 index represents an increase of 51 from the December 2009 index of 105

CEMArsquos baseline calculation uses the year 1990 as a comparison (1990=100) Numbers to the right of the equation show the current state of the conveyor indus-try as compared to 1990 Figures above 100 indicate growth while anything less indicates a contraction in the industry

ACCorDing To A reCenT reporT from ABi research (wwwabiresearchcom) rFiD item-level tagging is being deployed very rapidly in apparel and footwear markets item-level passive uhF tags now make up an increasing share of the total world market for rFiD tags The firm fore-casts that more than three quarters of a billion rFiD tags will be used in global apparel markets in 2011

ldquoRFID systems allow apparel retailers to get a better handle on inventory reducing costs and preventing out of stock situations that result in loss of salesrdquo said ABI Research principal analyst Bill Arnold ldquoThe growth in retail item-level tagging is huge both in shipments and in total spending The average growth rate is close to 60 for the next three years In fact the number of tags that will be used for retail item-level tagging in apparel alone is likely to exceed the total number consumed over the past five years for all RFID markets combinedrdquo

peCo pAlleT AnnounCeD that the company has been acquired by The pritzker group a private investment firm owned and controlled by JB pritzker and Tony pritzker The acquisition provides peCo pallet (wwwpecopalletcom) with substantial equity capital to fund the companyrsquos continued expansion throughout the uS Canada and mexico

ldquoPECO has been hamstrung in the past in terms of its growth potentialrdquo Chaille Brindley publisher of Pallet Enterprise told Modern ldquoIt was only able to grow as much as cash generated by the business allowed I under-stand that the new owners are looking for growth not immediate return on investment Additionally these owners have the funds to build for the future This means that PECO will be in a better position to be a viable player for more rental business in the futurerdquo

The acquisition follows more than five years of significant growth for PECO Pallet whose pallet quality performance and service support have made the company a North American leader in pallet rental services PECOrsquos signature red wood block pallets are used by an increasing number of market leaders in the consumer packaged goods industries and over 95 of top US retailers

rFid item-level growth increasing in retail sector

90Number of educational sessions being held in the Knowledge Center at ProMat 2011

PeCo Pallet acquired by Pritzker group

retrotech acquired by savoye

FAST FACT

UP FRONT B r e a k i n g n e w s y o u s h o u l d k n o w

CeMa reports 25 more booked orders in december

reTroTeCh hAS Been ACquireD by French firm Savoye (wwwsavoyecom) retrotech (wwwretrotechcom) a leading engineering services firm specializing in warehouse automation was acquired in its entirety by a subsidiary of groupe legris a $500 million industrial company groupe legris was no 8 on Modernrsquos annual sys-tems supplier list last year

Retrotech founded in 1985 is considered a pioneer in the modernization of existing warehouse handling

systems and in the design integration and installation of new projects Retrotechrsquos customized solutions accom-modate increasingly large numbers of SKUs and short-

ened delivery times ldquoRetrotech has earned a solid reputation for first-rate engineering services and support that we can now offer to our North American customersrdquo said

Jack LeVan president of Savoye ldquoWe look forward to building upon the Retrotech name and high level of service they providerdquo

MMH1103_upfrontindd 3 3911 908 AM

INNOVATIVE PRODUCTS

From Akro-Mils

Discover how innovative products from Akro-Mils can add efciency and organization to your material handling

Call us at 8002532467 or visit wwwakro-milscom for more information

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ShelfMaxtrade

EarthSavertrade

AkroDrawerstrade Stackable Cabinets

InSighttrade

VantageBintrade

Dedicated to Our

Distributor Network

Everything You Need To Store Organize amp Transport

MMH0311_adsindd 4 3911 115 PM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 5

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION WAREHOUSING AND MANUFACTURING

VOL 66 NO3

DEPARTMENTS amp COLUMNS 3 Upfront

7 This month in Modern

14 Lift Truck Tips Fast-charging

45 Supplement Warehouse amp DC

50 Focus On Picking technology

58 60 Seconds with

NEWS 9 New rules for shipping to Canada

10 ISM reports 21 months of manufacturing growth

COVER STORYSYSTEM REPORT

16 Cokersquos new take on voiceTo revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

21 How VolP works at Coca-ColaThe system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

FEATURES2011 INDUSTRY OUTLOOK

24 Optimism shinesMaterials handling industry experts report that 2010 was better than expected and believe that wersquore painting a brighter picture for 2011

BIG PICTURE

30 The mobile supply chain is on the moveMobility is the hottest marketing trend in the supply chain Modern looks behind the hype to see what is changing in the mobile supply chain

EQUIPMENT 101 SERIES

36 How ASRS worksAutomated storage and retrieval systems can help an operation reduce labor increase accuracy and throughput and have a green impact on the environment

60 Seconds with Steve Thomas

Modern Materials Handling reg (ISSN 0026-8038) is published monthly by Peerless Media LLC a Division of EH Publishing Inc 111 Speen St Suite 200 Framingham MA 01701 Annual subscription rates for non-qualifi ed subscribers USA $119 Canada $159 Other International $249 Single copies are available for $2000 Send all subscription inquiries to Modern Materials Handling 111 Speen Street Suite 200 Framingham MA 01701 USA Periodicals postage paid at Framingham MA and additional mail-ing offi ces POSTMASTER Send address changes to Modern Materi-als Handling PO Box 1496 Framingham MA 01701-1496 Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited All rights reserved copy2011 Peerless Media LLC

reg

Mike Jacks senior manager of logistics systems Coca-Cola Refreshments USA

MMH1103_TOCindd 5 3911 1037 AM

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Unlike corrugated containers the Maximizer can be reused hundreds of times for shipping and storing light-duty dry goods And its innovative design offers better ergonomics with two full-width access doors

Maximize your companyrsquos productivity cost savings safety space usage and sustainability with Buckhorn

Calculate your savings now at buckhorninccommaximizerOr call 18005434454

US 18005434454Canada 18004617579wwwbuckhorninccomcopy2011 Buckhorn Myers Industries Inc 022411

MMH0311_adsindd 6 3911 904 AM

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Tom AndelCOLUMNIST

tandel4315aolcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 7

reg

Member Member ofOfficial Publication of

Winner Jesse H Neal

Certificates of Merit for Journalistic

Excellence

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

MICHAEL LEVANSGROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Based on some of the tempered opti-mism wersquore reporting this month in our 2011 Industry Outlook therersquos a pretty

good chance you dusted off your suitcase and caught a fl ight to Chicago to attend Pro-Mat 2011 the most comprehensive materials handling trade show event in the US (March 21 to 24)

In fact you just might be reading this column on the show fl oor and if you are I applaud the effort Your attendance and the fact that you found some money in the travel budget further validates our fi ndings that while we may not be back to pre-recession levels in terms of equipment and technology sales we are fi nding more bloom than gloom in the numbers

According to our State of WarehouseDC Equipment and Technology Survey the foun-dation of associate editor Lorie King Rogersrsquo excellent Industry Outlook article (page 24) 51 of respondents report that theyrsquore mov-ing forward with planned investmentsmdashup from a mere 18 in 2010 About half (47) expect 2011 spending to be on par with 2010 while 36 expect that their spending will increasemdashan improvement from the 16 that reported increased spending in 2010

And while those numbers are certainly encouraging I have to admit that I was a bit surprised to fi nd that the median amount respondents are anticipating to spend in 2011 ($77000) actually dropped 8 from last yearrsquos fi ndings

ldquoWith that level of investment yoursquore just making marginal improvementsrdquo says Don Derewecki a business consultant with Tran-Systems and one of the experts who will be putting our fi ndings into perspective during Modernrsquos 2011 Industry Outlook Webcast on March 31 at 100 pm ET (mmhcomout-

look2011) ldquoWhen we dig deeper into these fi ndings we fi nd that only 12 of the respon-dents are planning to spend a million dollars or more so to me that says that only 12 say theyrsquore doing something signifi cantrdquo

On the webcast Derewecki and Mod-ernrsquos executive editor Bob Trebilcock will try to put some perspective around why this level of anticipated spending came in a bit lower in 2011 According to Derewecki one explanation could be that even though economic growth started to turn a corner at the end of 2010 our survey found that therersquos still plenty of available capacity in our respondentsrsquo facilities In fact utilization averages came in at 64 this year a decline from the 65 posted in 2010

Derewecki suggests that this low utilization rate actually has quite a bit to do with the fact that US companies on average have gotten better at demand planning and controlling inventories ldquoCorporate management is guar-anteed to question the need for additional investments when operating at such low ca-pacity utilizationsrdquo adds Derewecki ldquoPeople donrsquot even think of investing until capacity constraints start biting themrdquo

So even with the economy slowly but surely strengthening your challenge is now twofold First you must assess whether or not the equipment and technology operat-ing in this existing capacity supports your future needs Second you must determine the argument for making the investment necessary to meet these new capabilities

And if yoursquore looking for advice for solidifying your equipment and technology investment argument I suggest joining Tre-bilcock and Derewecki on March 31 Even in good times a little investment justifi ca-tion support never hurts

More bloom than gloom

MMH1103_Editorialindd 7 3911 348 PM

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Innovative Where It Counts At Intelligrated innovative means dedication to a continuous improvement process that transforms ideas research design and engineering into customer success Our industry-leading material handling solutions maximize the value and productivity of your business Engineering for a better ROI Thatrsquos the Intelligrated way

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Innovative

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at

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at in

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nd at

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oth

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We innovate for customer success not for the

next-generation widget

MMH0311_adsindd 8 3911 904 AM

A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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ECONOMY

ISM reports 21 months of manufacturing growth

MMH1103_newsindd 10 3911 906 AM

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

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Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

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Save Space and Increase Throughput

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

Any Task

Any Place

Any Time

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Give Your Supply Chain A Voice

blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

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16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

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MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

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027_MMH1P4cindd 1 2111 101609 AMMMH0311_adsindd 35 3911 904 AM

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

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cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

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Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 2: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

What is ldquoGoods to Personrdquo

ldquoGoods to personrdquo means the order picker stays in one place

and the system brings the ldquogoodsrdquo or SKUs (stock keeping

units) to the person The SKU is picked and then sent back to

a storage location The basic system components consist of a

storage medium for the product inventory a conveyance method

to bring the SKUs to the pick station an ergonomic workstation

and software to control flow

Benefits of Goods to Person Order Fulfillment

Eliminate picker travel time use less labor ndash Order pickers

do not need to roam the warehouse walking to and from the

dedicated pick faces Travel time is the largest time component

of a traditional order picker in a ldquoperson to goodsrdquo arrangement

By minimizing this time component productivity is increased and

labor to operate the facility is reduced

Omit the dedicated pick face ndash Typically a ldquogoods

to personrdquo system involves staging the inventory in an

automated device such as an automated storage amp retrieval

system (ASRS) Think of it as a black box where all the

SKUs are stored a SKU is retrieved when it is required

This omits the need for SKU slotting and ongoing re-slotting

management (moving the pick faces as activity rates change)

that is typical of a ldquoperson to the goodsrdquo warehouse

Reduce system footprint ndash The space required for a

ldquogoods to personrdquo design is less than conventional ldquoperson

to goodsrdquo If the storage medium is high density significant

space savings can be achieved A typical footprint may be

30 to 50 less than conventional storage

Product Security ndash When the product inventory is placed

into a high density automated system (ASRS) it is secure

and not available for access by your staff Product security is

important to maintain inventory accuracy reduce theft and

assure first in first out strategies

Ergonomic workstations ndash The pick stations can be

designed for employee comfort Working heights range

of motion and environment (lighting temperature) can be

optimized for the employee

Speed in order selection ndash The pick station design allows

high worker productivity Since there is little or no travel

time and the item to be picked is ergonomically served to

the worker high rates of order selection are achieved Most

operations obtain rates in the 500 to 1000 lines picked per

hour per operator

Accuracy ndash Order picking using a ldquogoods to personrdquo station

is more accurate because operators are typically handling

one SKU at a time making errors less likely Most ldquogoods

to personrdquo stations utilize put-to-light technology to indicate

quantity and location to put the item further enhancing

accuracy

High utilization workstations ndash Work flows into the pick

station smoothly and consistently Order pickers are highly

utilized since they do not need to wait for work Worker

productivity is not affected by the structure typical of a

traditional pick module (high activity in one zone little activity

in another zone pace issues in a pick-and-pass environment

etc)

Sequencing ndash When building a customer order a precise

sequence of SKUs can be achieved For example items can

be presented to the order selector by weight (heavy to light)

To learn more about Goods to Person Order Fulfillment visit ProMat booths 3603 amp 3612 or wwwdematicus

or call 1-877-725-7500

Fostering Supply Chain Education

DEMATICUNIVERSITY

S U P P LY C H A I N E D U C AT I O N A L S E R I E S D E V E L O P E D B Y D E M AT I C

Maximize Warehouse Productivity with ldquoGoods to Personrdquo Method

Visit Us at Booths 3603 amp 3612

MMH0311_adsindd 2 3911 904 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 3

The Conveyor equipmenT manufacturers Association (CemA wwwcemanetorg) reported that its December 2010 Booked orders index was 159 The index in December is up 32 points or 25 from november 2010rsquos index of 127 The December 2010 index represents an increase of 51 from the December 2009 index of 105

CEMArsquos baseline calculation uses the year 1990 as a comparison (1990=100) Numbers to the right of the equation show the current state of the conveyor indus-try as compared to 1990 Figures above 100 indicate growth while anything less indicates a contraction in the industry

ACCorDing To A reCenT reporT from ABi research (wwwabiresearchcom) rFiD item-level tagging is being deployed very rapidly in apparel and footwear markets item-level passive uhF tags now make up an increasing share of the total world market for rFiD tags The firm fore-casts that more than three quarters of a billion rFiD tags will be used in global apparel markets in 2011

ldquoRFID systems allow apparel retailers to get a better handle on inventory reducing costs and preventing out of stock situations that result in loss of salesrdquo said ABI Research principal analyst Bill Arnold ldquoThe growth in retail item-level tagging is huge both in shipments and in total spending The average growth rate is close to 60 for the next three years In fact the number of tags that will be used for retail item-level tagging in apparel alone is likely to exceed the total number consumed over the past five years for all RFID markets combinedrdquo

peCo pAlleT AnnounCeD that the company has been acquired by The pritzker group a private investment firm owned and controlled by JB pritzker and Tony pritzker The acquisition provides peCo pallet (wwwpecopalletcom) with substantial equity capital to fund the companyrsquos continued expansion throughout the uS Canada and mexico

ldquoPECO has been hamstrung in the past in terms of its growth potentialrdquo Chaille Brindley publisher of Pallet Enterprise told Modern ldquoIt was only able to grow as much as cash generated by the business allowed I under-stand that the new owners are looking for growth not immediate return on investment Additionally these owners have the funds to build for the future This means that PECO will be in a better position to be a viable player for more rental business in the futurerdquo

The acquisition follows more than five years of significant growth for PECO Pallet whose pallet quality performance and service support have made the company a North American leader in pallet rental services PECOrsquos signature red wood block pallets are used by an increasing number of market leaders in the consumer packaged goods industries and over 95 of top US retailers

rFid item-level growth increasing in retail sector

90Number of educational sessions being held in the Knowledge Center at ProMat 2011

PeCo Pallet acquired by Pritzker group

retrotech acquired by savoye

FAST FACT

UP FRONT B r e a k i n g n e w s y o u s h o u l d k n o w

CeMa reports 25 more booked orders in december

reTroTeCh hAS Been ACquireD by French firm Savoye (wwwsavoyecom) retrotech (wwwretrotechcom) a leading engineering services firm specializing in warehouse automation was acquired in its entirety by a subsidiary of groupe legris a $500 million industrial company groupe legris was no 8 on Modernrsquos annual sys-tems supplier list last year

Retrotech founded in 1985 is considered a pioneer in the modernization of existing warehouse handling

systems and in the design integration and installation of new projects Retrotechrsquos customized solutions accom-modate increasingly large numbers of SKUs and short-

ened delivery times ldquoRetrotech has earned a solid reputation for first-rate engineering services and support that we can now offer to our North American customersrdquo said

Jack LeVan president of Savoye ldquoWe look forward to building upon the Retrotech name and high level of service they providerdquo

MMH1103_upfrontindd 3 3911 908 AM

INNOVATIVE PRODUCTS

From Akro-Mils

Discover how innovative products from Akro-Mils can add efciency and organization to your material handling

Call us at 8002532467 or visit wwwakro-milscom for more information

ProCarttrade

ADecktrade

System Binstrade

Indicatortrade

Super-Size AkroBinsreg

ShelfMaxtrade

EarthSavertrade

AkroDrawerstrade Stackable Cabinets

InSighttrade

VantageBintrade

Dedicated to Our

Distributor Network

Everything You Need To Store Organize amp Transport

MMH0311_adsindd 4 3911 115 PM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 5

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION WAREHOUSING AND MANUFACTURING

VOL 66 NO3

DEPARTMENTS amp COLUMNS 3 Upfront

7 This month in Modern

14 Lift Truck Tips Fast-charging

45 Supplement Warehouse amp DC

50 Focus On Picking technology

58 60 Seconds with

NEWS 9 New rules for shipping to Canada

10 ISM reports 21 months of manufacturing growth

COVER STORYSYSTEM REPORT

16 Cokersquos new take on voiceTo revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

21 How VolP works at Coca-ColaThe system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

FEATURES2011 INDUSTRY OUTLOOK

24 Optimism shinesMaterials handling industry experts report that 2010 was better than expected and believe that wersquore painting a brighter picture for 2011

BIG PICTURE

30 The mobile supply chain is on the moveMobility is the hottest marketing trend in the supply chain Modern looks behind the hype to see what is changing in the mobile supply chain

EQUIPMENT 101 SERIES

36 How ASRS worksAutomated storage and retrieval systems can help an operation reduce labor increase accuracy and throughput and have a green impact on the environment

60 Seconds with Steve Thomas

Modern Materials Handling reg (ISSN 0026-8038) is published monthly by Peerless Media LLC a Division of EH Publishing Inc 111 Speen St Suite 200 Framingham MA 01701 Annual subscription rates for non-qualifi ed subscribers USA $119 Canada $159 Other International $249 Single copies are available for $2000 Send all subscription inquiries to Modern Materials Handling 111 Speen Street Suite 200 Framingham MA 01701 USA Periodicals postage paid at Framingham MA and additional mail-ing offi ces POSTMASTER Send address changes to Modern Materi-als Handling PO Box 1496 Framingham MA 01701-1496 Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited All rights reserved copy2011 Peerless Media LLC

reg

Mike Jacks senior manager of logistics systems Coca-Cola Refreshments USA

MMH1103_TOCindd 5 3911 1037 AM

When it comes to fast assembly and breakdown YOUrsquoRE A ONE-MAN SHOW

A NEW KIND OF REUSABLE ALTERNATIVE One person Thatrsquos all it takes to assemble and breakdown Buckhornrsquos revolutionary Maximizertrade Collapsible Container System

Unlike corrugated containers the Maximizer can be reused hundreds of times for shipping and storing light-duty dry goods And its innovative design offers better ergonomics with two full-width access doors

Maximize your companyrsquos productivity cost savings safety space usage and sustainability with Buckhorn

Calculate your savings now at buckhorninccommaximizerOr call 18005434454

US 18005434454Canada 18004617579wwwbuckhorninccomcopy2011 Buckhorn Myers Industries Inc 022411

MMH0311_adsindd 6 3911 904 AM

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Tom AndelCOLUMNIST

tandel4315aolcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 7

reg

Member Member ofOfficial Publication of

Winner Jesse H Neal

Certificates of Merit for Journalistic

Excellence

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

MICHAEL LEVANSGROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Based on some of the tempered opti-mism wersquore reporting this month in our 2011 Industry Outlook therersquos a pretty

good chance you dusted off your suitcase and caught a fl ight to Chicago to attend Pro-Mat 2011 the most comprehensive materials handling trade show event in the US (March 21 to 24)

In fact you just might be reading this column on the show fl oor and if you are I applaud the effort Your attendance and the fact that you found some money in the travel budget further validates our fi ndings that while we may not be back to pre-recession levels in terms of equipment and technology sales we are fi nding more bloom than gloom in the numbers

According to our State of WarehouseDC Equipment and Technology Survey the foun-dation of associate editor Lorie King Rogersrsquo excellent Industry Outlook article (page 24) 51 of respondents report that theyrsquore mov-ing forward with planned investmentsmdashup from a mere 18 in 2010 About half (47) expect 2011 spending to be on par with 2010 while 36 expect that their spending will increasemdashan improvement from the 16 that reported increased spending in 2010

And while those numbers are certainly encouraging I have to admit that I was a bit surprised to fi nd that the median amount respondents are anticipating to spend in 2011 ($77000) actually dropped 8 from last yearrsquos fi ndings

ldquoWith that level of investment yoursquore just making marginal improvementsrdquo says Don Derewecki a business consultant with Tran-Systems and one of the experts who will be putting our fi ndings into perspective during Modernrsquos 2011 Industry Outlook Webcast on March 31 at 100 pm ET (mmhcomout-

look2011) ldquoWhen we dig deeper into these fi ndings we fi nd that only 12 of the respon-dents are planning to spend a million dollars or more so to me that says that only 12 say theyrsquore doing something signifi cantrdquo

On the webcast Derewecki and Mod-ernrsquos executive editor Bob Trebilcock will try to put some perspective around why this level of anticipated spending came in a bit lower in 2011 According to Derewecki one explanation could be that even though economic growth started to turn a corner at the end of 2010 our survey found that therersquos still plenty of available capacity in our respondentsrsquo facilities In fact utilization averages came in at 64 this year a decline from the 65 posted in 2010

Derewecki suggests that this low utilization rate actually has quite a bit to do with the fact that US companies on average have gotten better at demand planning and controlling inventories ldquoCorporate management is guar-anteed to question the need for additional investments when operating at such low ca-pacity utilizationsrdquo adds Derewecki ldquoPeople donrsquot even think of investing until capacity constraints start biting themrdquo

So even with the economy slowly but surely strengthening your challenge is now twofold First you must assess whether or not the equipment and technology operat-ing in this existing capacity supports your future needs Second you must determine the argument for making the investment necessary to meet these new capabilities

And if yoursquore looking for advice for solidifying your equipment and technology investment argument I suggest joining Tre-bilcock and Derewecki on March 31 Even in good times a little investment justifi ca-tion support never hurts

More bloom than gloom

MMH1103_Editorialindd 7 3911 348 PM

Innovative

Integrity Committed Innovative Smart The Intelligrated Way

Innovative Where It Counts At Intelligrated innovative means dedication to a continuous improvement process that transforms ideas research design and engineering into customer success Our industry-leading material handling solutions maximize the value and productivity of your business Engineering for a better ROI Thatrsquos the Intelligrated way

8669367300 wwwintelligratedcominnovative

Innovative

Visit

Inte

lligra

ted

at

ProM

at in

boo

th 2

903 a

nd at

Autom

ate i

n bo

oth

714

We innovate for customer success not for the

next-generation widget

MMH0311_adsindd 8 3911 904 AM

A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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Limited Time Offer ndash FREE 30 Day Trial Apply now at wwwthelaserkillercom

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

Any Task

Any Place

Any Time

Visit us at Booth 4568

Increase Productivity by 15 to 20

Drive Order Accuracy Over 9998

Reduce Operating Costs 10 to 20

Decrease Voice TCO by 45 or More

Give Your Supply Chain A Voice

blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

wwwchdistcommmh

11OFF

chdistcommmhFor details

Prices listedaregoodthroughApril302011 MMH0311V1

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4118821mdashE-Z StorregAll-SteelOrganizers$36200

7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

8828532mdashSteelShelving withClear AkroDrawers

7189101mdashVERSADecktradePlatform Trucks$42100

$90800

4221901mdashPoly ColumnProtectors$20700

4339600mdashCanMeleontradeIndoorOutdoorReceptacles

$4580 $5520

5707800mdashStorage Locker$77400

5511500mdash60x3614000-Lb CapacityWorkbenches

$58990

5576523mdash5-shelfFire-ResistantStorage Cabinets

$309900

$1972007122800mdashManual-levelingSkidLifttradePallet Positioners

7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

7807328mdash1-Tier Locker$45500

4162227mdash36x18x72All-WeldedCabinets

4290609mdashExtra-LargeUltra Poly Bins$2850

42710mdashUltra Poly Bins

$126And up

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

shippable FirmaCorereg Lightweight

Carriers for economical one-way transport and

solid-stackable FirmaLoadreg Bulk Bag

Carriers designed

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how this truly

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Visit sonocotranspackcom or call

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The most able pallets going and comingmdash

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 3: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom Modern Materials Handling M a r c h 2 0 1 1 3

The Conveyor equipmenT manufacturers Association (CemA wwwcemanetorg) reported that its December 2010 Booked orders index was 159 The index in December is up 32 points or 25 from november 2010rsquos index of 127 The December 2010 index represents an increase of 51 from the December 2009 index of 105

CEMArsquos baseline calculation uses the year 1990 as a comparison (1990=100) Numbers to the right of the equation show the current state of the conveyor indus-try as compared to 1990 Figures above 100 indicate growth while anything less indicates a contraction in the industry

ACCorDing To A reCenT reporT from ABi research (wwwabiresearchcom) rFiD item-level tagging is being deployed very rapidly in apparel and footwear markets item-level passive uhF tags now make up an increasing share of the total world market for rFiD tags The firm fore-casts that more than three quarters of a billion rFiD tags will be used in global apparel markets in 2011

ldquoRFID systems allow apparel retailers to get a better handle on inventory reducing costs and preventing out of stock situations that result in loss of salesrdquo said ABI Research principal analyst Bill Arnold ldquoThe growth in retail item-level tagging is huge both in shipments and in total spending The average growth rate is close to 60 for the next three years In fact the number of tags that will be used for retail item-level tagging in apparel alone is likely to exceed the total number consumed over the past five years for all RFID markets combinedrdquo

peCo pAlleT AnnounCeD that the company has been acquired by The pritzker group a private investment firm owned and controlled by JB pritzker and Tony pritzker The acquisition provides peCo pallet (wwwpecopalletcom) with substantial equity capital to fund the companyrsquos continued expansion throughout the uS Canada and mexico

ldquoPECO has been hamstrung in the past in terms of its growth potentialrdquo Chaille Brindley publisher of Pallet Enterprise told Modern ldquoIt was only able to grow as much as cash generated by the business allowed I under-stand that the new owners are looking for growth not immediate return on investment Additionally these owners have the funds to build for the future This means that PECO will be in a better position to be a viable player for more rental business in the futurerdquo

The acquisition follows more than five years of significant growth for PECO Pallet whose pallet quality performance and service support have made the company a North American leader in pallet rental services PECOrsquos signature red wood block pallets are used by an increasing number of market leaders in the consumer packaged goods industries and over 95 of top US retailers

rFid item-level growth increasing in retail sector

90Number of educational sessions being held in the Knowledge Center at ProMat 2011

PeCo Pallet acquired by Pritzker group

retrotech acquired by savoye

FAST FACT

UP FRONT B r e a k i n g n e w s y o u s h o u l d k n o w

CeMa reports 25 more booked orders in december

reTroTeCh hAS Been ACquireD by French firm Savoye (wwwsavoyecom) retrotech (wwwretrotechcom) a leading engineering services firm specializing in warehouse automation was acquired in its entirety by a subsidiary of groupe legris a $500 million industrial company groupe legris was no 8 on Modernrsquos annual sys-tems supplier list last year

Retrotech founded in 1985 is considered a pioneer in the modernization of existing warehouse handling

systems and in the design integration and installation of new projects Retrotechrsquos customized solutions accom-modate increasingly large numbers of SKUs and short-

ened delivery times ldquoRetrotech has earned a solid reputation for first-rate engineering services and support that we can now offer to our North American customersrdquo said

Jack LeVan president of Savoye ldquoWe look forward to building upon the Retrotech name and high level of service they providerdquo

MMH1103_upfrontindd 3 3911 908 AM

INNOVATIVE PRODUCTS

From Akro-Mils

Discover how innovative products from Akro-Mils can add efciency and organization to your material handling

Call us at 8002532467 or visit wwwakro-milscom for more information

ProCarttrade

ADecktrade

System Binstrade

Indicatortrade

Super-Size AkroBinsreg

ShelfMaxtrade

EarthSavertrade

AkroDrawerstrade Stackable Cabinets

InSighttrade

VantageBintrade

Dedicated to Our

Distributor Network

Everything You Need To Store Organize amp Transport

MMH0311_adsindd 4 3911 115 PM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 5

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION WAREHOUSING AND MANUFACTURING

VOL 66 NO3

DEPARTMENTS amp COLUMNS 3 Upfront

7 This month in Modern

14 Lift Truck Tips Fast-charging

45 Supplement Warehouse amp DC

50 Focus On Picking technology

58 60 Seconds with

NEWS 9 New rules for shipping to Canada

10 ISM reports 21 months of manufacturing growth

COVER STORYSYSTEM REPORT

16 Cokersquos new take on voiceTo revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

21 How VolP works at Coca-ColaThe system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

FEATURES2011 INDUSTRY OUTLOOK

24 Optimism shinesMaterials handling industry experts report that 2010 was better than expected and believe that wersquore painting a brighter picture for 2011

BIG PICTURE

30 The mobile supply chain is on the moveMobility is the hottest marketing trend in the supply chain Modern looks behind the hype to see what is changing in the mobile supply chain

EQUIPMENT 101 SERIES

36 How ASRS worksAutomated storage and retrieval systems can help an operation reduce labor increase accuracy and throughput and have a green impact on the environment

60 Seconds with Steve Thomas

Modern Materials Handling reg (ISSN 0026-8038) is published monthly by Peerless Media LLC a Division of EH Publishing Inc 111 Speen St Suite 200 Framingham MA 01701 Annual subscription rates for non-qualifi ed subscribers USA $119 Canada $159 Other International $249 Single copies are available for $2000 Send all subscription inquiries to Modern Materials Handling 111 Speen Street Suite 200 Framingham MA 01701 USA Periodicals postage paid at Framingham MA and additional mail-ing offi ces POSTMASTER Send address changes to Modern Materi-als Handling PO Box 1496 Framingham MA 01701-1496 Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited All rights reserved copy2011 Peerless Media LLC

reg

Mike Jacks senior manager of logistics systems Coca-Cola Refreshments USA

MMH1103_TOCindd 5 3911 1037 AM

When it comes to fast assembly and breakdown YOUrsquoRE A ONE-MAN SHOW

A NEW KIND OF REUSABLE ALTERNATIVE One person Thatrsquos all it takes to assemble and breakdown Buckhornrsquos revolutionary Maximizertrade Collapsible Container System

Unlike corrugated containers the Maximizer can be reused hundreds of times for shipping and storing light-duty dry goods And its innovative design offers better ergonomics with two full-width access doors

Maximize your companyrsquos productivity cost savings safety space usage and sustainability with Buckhorn

Calculate your savings now at buckhorninccommaximizerOr call 18005434454

US 18005434454Canada 18004617579wwwbuckhorninccomcopy2011 Buckhorn Myers Industries Inc 022411

MMH0311_adsindd 6 3911 904 AM

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Tom AndelCOLUMNIST

tandel4315aolcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 7

reg

Member Member ofOfficial Publication of

Winner Jesse H Neal

Certificates of Merit for Journalistic

Excellence

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

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MICHAEL LEVANSGROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Based on some of the tempered opti-mism wersquore reporting this month in our 2011 Industry Outlook therersquos a pretty

good chance you dusted off your suitcase and caught a fl ight to Chicago to attend Pro-Mat 2011 the most comprehensive materials handling trade show event in the US (March 21 to 24)

In fact you just might be reading this column on the show fl oor and if you are I applaud the effort Your attendance and the fact that you found some money in the travel budget further validates our fi ndings that while we may not be back to pre-recession levels in terms of equipment and technology sales we are fi nding more bloom than gloom in the numbers

According to our State of WarehouseDC Equipment and Technology Survey the foun-dation of associate editor Lorie King Rogersrsquo excellent Industry Outlook article (page 24) 51 of respondents report that theyrsquore mov-ing forward with planned investmentsmdashup from a mere 18 in 2010 About half (47) expect 2011 spending to be on par with 2010 while 36 expect that their spending will increasemdashan improvement from the 16 that reported increased spending in 2010

And while those numbers are certainly encouraging I have to admit that I was a bit surprised to fi nd that the median amount respondents are anticipating to spend in 2011 ($77000) actually dropped 8 from last yearrsquos fi ndings

ldquoWith that level of investment yoursquore just making marginal improvementsrdquo says Don Derewecki a business consultant with Tran-Systems and one of the experts who will be putting our fi ndings into perspective during Modernrsquos 2011 Industry Outlook Webcast on March 31 at 100 pm ET (mmhcomout-

look2011) ldquoWhen we dig deeper into these fi ndings we fi nd that only 12 of the respon-dents are planning to spend a million dollars or more so to me that says that only 12 say theyrsquore doing something signifi cantrdquo

On the webcast Derewecki and Mod-ernrsquos executive editor Bob Trebilcock will try to put some perspective around why this level of anticipated spending came in a bit lower in 2011 According to Derewecki one explanation could be that even though economic growth started to turn a corner at the end of 2010 our survey found that therersquos still plenty of available capacity in our respondentsrsquo facilities In fact utilization averages came in at 64 this year a decline from the 65 posted in 2010

Derewecki suggests that this low utilization rate actually has quite a bit to do with the fact that US companies on average have gotten better at demand planning and controlling inventories ldquoCorporate management is guar-anteed to question the need for additional investments when operating at such low ca-pacity utilizationsrdquo adds Derewecki ldquoPeople donrsquot even think of investing until capacity constraints start biting themrdquo

So even with the economy slowly but surely strengthening your challenge is now twofold First you must assess whether or not the equipment and technology operat-ing in this existing capacity supports your future needs Second you must determine the argument for making the investment necessary to meet these new capabilities

And if yoursquore looking for advice for solidifying your equipment and technology investment argument I suggest joining Tre-bilcock and Derewecki on March 31 Even in good times a little investment justifi ca-tion support never hurts

More bloom than gloom

MMH1103_Editorialindd 7 3911 348 PM

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A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

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Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

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blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

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7189101mdashVERSADecktradePlatform Trucks$42100

$90800

4221901mdashPoly ColumnProtectors$20700

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$4580 $5520

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5511500mdash60x3614000-Lb CapacityWorkbenches

$58990

5576523mdash5-shelfFire-ResistantStorage Cabinets

$309900

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7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

7807328mdash1-Tier Locker$45500

4162227mdash36x18x72All-WeldedCabinets

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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Carriers are stiffer more slip resistant and

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helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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performance ProTalkreg portables to NEXEDGEreg designed to

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including IP networking and the ability to tie into existing

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 4: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

INNOVATIVE PRODUCTS

From Akro-Mils

Discover how innovative products from Akro-Mils can add efciency and organization to your material handling

Call us at 8002532467 or visit wwwakro-milscom for more information

ProCarttrade

ADecktrade

System Binstrade

Indicatortrade

Super-Size AkroBinsreg

ShelfMaxtrade

EarthSavertrade

AkroDrawerstrade Stackable Cabinets

InSighttrade

VantageBintrade

Dedicated to Our

Distributor Network

Everything You Need To Store Organize amp Transport

MMH0311_adsindd 4 3911 115 PM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 5

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION WAREHOUSING AND MANUFACTURING

VOL 66 NO3

DEPARTMENTS amp COLUMNS 3 Upfront

7 This month in Modern

14 Lift Truck Tips Fast-charging

45 Supplement Warehouse amp DC

50 Focus On Picking technology

58 60 Seconds with

NEWS 9 New rules for shipping to Canada

10 ISM reports 21 months of manufacturing growth

COVER STORYSYSTEM REPORT

16 Cokersquos new take on voiceTo revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

21 How VolP works at Coca-ColaThe system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

FEATURES2011 INDUSTRY OUTLOOK

24 Optimism shinesMaterials handling industry experts report that 2010 was better than expected and believe that wersquore painting a brighter picture for 2011

BIG PICTURE

30 The mobile supply chain is on the moveMobility is the hottest marketing trend in the supply chain Modern looks behind the hype to see what is changing in the mobile supply chain

EQUIPMENT 101 SERIES

36 How ASRS worksAutomated storage and retrieval systems can help an operation reduce labor increase accuracy and throughput and have a green impact on the environment

60 Seconds with Steve Thomas

Modern Materials Handling reg (ISSN 0026-8038) is published monthly by Peerless Media LLC a Division of EH Publishing Inc 111 Speen St Suite 200 Framingham MA 01701 Annual subscription rates for non-qualifi ed subscribers USA $119 Canada $159 Other International $249 Single copies are available for $2000 Send all subscription inquiries to Modern Materials Handling 111 Speen Street Suite 200 Framingham MA 01701 USA Periodicals postage paid at Framingham MA and additional mail-ing offi ces POSTMASTER Send address changes to Modern Materi-als Handling PO Box 1496 Framingham MA 01701-1496 Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited All rights reserved copy2011 Peerless Media LLC

reg

Mike Jacks senior manager of logistics systems Coca-Cola Refreshments USA

MMH1103_TOCindd 5 3911 1037 AM

When it comes to fast assembly and breakdown YOUrsquoRE A ONE-MAN SHOW

A NEW KIND OF REUSABLE ALTERNATIVE One person Thatrsquos all it takes to assemble and breakdown Buckhornrsquos revolutionary Maximizertrade Collapsible Container System

Unlike corrugated containers the Maximizer can be reused hundreds of times for shipping and storing light-duty dry goods And its innovative design offers better ergonomics with two full-width access doors

Maximize your companyrsquos productivity cost savings safety space usage and sustainability with Buckhorn

Calculate your savings now at buckhorninccommaximizerOr call 18005434454

US 18005434454Canada 18004617579wwwbuckhorninccomcopy2011 Buckhorn Myers Industries Inc 022411

MMH0311_adsindd 6 3911 904 AM

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Tom AndelCOLUMNIST

tandel4315aolcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 7

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Member Member ofOfficial Publication of

Winner Jesse H Neal

Certificates of Merit for Journalistic

Excellence

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

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TRANSYSTEMS

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Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

MICHAEL LEVANSGROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Based on some of the tempered opti-mism wersquore reporting this month in our 2011 Industry Outlook therersquos a pretty

good chance you dusted off your suitcase and caught a fl ight to Chicago to attend Pro-Mat 2011 the most comprehensive materials handling trade show event in the US (March 21 to 24)

In fact you just might be reading this column on the show fl oor and if you are I applaud the effort Your attendance and the fact that you found some money in the travel budget further validates our fi ndings that while we may not be back to pre-recession levels in terms of equipment and technology sales we are fi nding more bloom than gloom in the numbers

According to our State of WarehouseDC Equipment and Technology Survey the foun-dation of associate editor Lorie King Rogersrsquo excellent Industry Outlook article (page 24) 51 of respondents report that theyrsquore mov-ing forward with planned investmentsmdashup from a mere 18 in 2010 About half (47) expect 2011 spending to be on par with 2010 while 36 expect that their spending will increasemdashan improvement from the 16 that reported increased spending in 2010

And while those numbers are certainly encouraging I have to admit that I was a bit surprised to fi nd that the median amount respondents are anticipating to spend in 2011 ($77000) actually dropped 8 from last yearrsquos fi ndings

ldquoWith that level of investment yoursquore just making marginal improvementsrdquo says Don Derewecki a business consultant with Tran-Systems and one of the experts who will be putting our fi ndings into perspective during Modernrsquos 2011 Industry Outlook Webcast on March 31 at 100 pm ET (mmhcomout-

look2011) ldquoWhen we dig deeper into these fi ndings we fi nd that only 12 of the respon-dents are planning to spend a million dollars or more so to me that says that only 12 say theyrsquore doing something signifi cantrdquo

On the webcast Derewecki and Mod-ernrsquos executive editor Bob Trebilcock will try to put some perspective around why this level of anticipated spending came in a bit lower in 2011 According to Derewecki one explanation could be that even though economic growth started to turn a corner at the end of 2010 our survey found that therersquos still plenty of available capacity in our respondentsrsquo facilities In fact utilization averages came in at 64 this year a decline from the 65 posted in 2010

Derewecki suggests that this low utilization rate actually has quite a bit to do with the fact that US companies on average have gotten better at demand planning and controlling inventories ldquoCorporate management is guar-anteed to question the need for additional investments when operating at such low ca-pacity utilizationsrdquo adds Derewecki ldquoPeople donrsquot even think of investing until capacity constraints start biting themrdquo

So even with the economy slowly but surely strengthening your challenge is now twofold First you must assess whether or not the equipment and technology operat-ing in this existing capacity supports your future needs Second you must determine the argument for making the investment necessary to meet these new capabilities

And if yoursquore looking for advice for solidifying your equipment and technology investment argument I suggest joining Tre-bilcock and Derewecki on March 31 Even in good times a little investment justifi ca-tion support never hurts

More bloom than gloom

MMH1103_Editorialindd 7 3911 348 PM

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A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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Limited Time Offer ndash FREE 30 Day Trial Apply now at wwwthelaserkillercom

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

Like to minimize the cost of ownership Ryson can help Our Spiral Conveyors need less floor space than conventional conveyors and are faster and more reliable than any elevator or lift All our products are designed for low maintenance and long life and our proprietary modular construction makes future reconfiguring cost effective

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Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

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blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

AutomatedVertical

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

wwwchdistcommmh

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7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

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7189101mdashVERSADecktradePlatform Trucks$42100

$90800

4221901mdashPoly ColumnProtectors$20700

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$58990

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$309900

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7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 5: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 5

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION WAREHOUSING AND MANUFACTURING

VOL 66 NO3

DEPARTMENTS amp COLUMNS 3 Upfront

7 This month in Modern

14 Lift Truck Tips Fast-charging

45 Supplement Warehouse amp DC

50 Focus On Picking technology

58 60 Seconds with

NEWS 9 New rules for shipping to Canada

10 ISM reports 21 months of manufacturing growth

COVER STORYSYSTEM REPORT

16 Cokersquos new take on voiceTo revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

21 How VolP works at Coca-ColaThe system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

FEATURES2011 INDUSTRY OUTLOOK

24 Optimism shinesMaterials handling industry experts report that 2010 was better than expected and believe that wersquore painting a brighter picture for 2011

BIG PICTURE

30 The mobile supply chain is on the moveMobility is the hottest marketing trend in the supply chain Modern looks behind the hype to see what is changing in the mobile supply chain

EQUIPMENT 101 SERIES

36 How ASRS worksAutomated storage and retrieval systems can help an operation reduce labor increase accuracy and throughput and have a green impact on the environment

60 Seconds with Steve Thomas

Modern Materials Handling reg (ISSN 0026-8038) is published monthly by Peerless Media LLC a Division of EH Publishing Inc 111 Speen St Suite 200 Framingham MA 01701 Annual subscription rates for non-qualifi ed subscribers USA $119 Canada $159 Other International $249 Single copies are available for $2000 Send all subscription inquiries to Modern Materials Handling 111 Speen Street Suite 200 Framingham MA 01701 USA Periodicals postage paid at Framingham MA and additional mail-ing offi ces POSTMASTER Send address changes to Modern Materi-als Handling PO Box 1496 Framingham MA 01701-1496 Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited All rights reserved copy2011 Peerless Media LLC

reg

Mike Jacks senior manager of logistics systems Coca-Cola Refreshments USA

MMH1103_TOCindd 5 3911 1037 AM

When it comes to fast assembly and breakdown YOUrsquoRE A ONE-MAN SHOW

A NEW KIND OF REUSABLE ALTERNATIVE One person Thatrsquos all it takes to assemble and breakdown Buckhornrsquos revolutionary Maximizertrade Collapsible Container System

Unlike corrugated containers the Maximizer can be reused hundreds of times for shipping and storing light-duty dry goods And its innovative design offers better ergonomics with two full-width access doors

Maximize your companyrsquos productivity cost savings safety space usage and sustainability with Buckhorn

Calculate your savings now at buckhorninccommaximizerOr call 18005434454

US 18005434454Canada 18004617579wwwbuckhorninccomcopy2011 Buckhorn Myers Industries Inc 022411

MMH0311_adsindd 6 3911 904 AM

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Tom AndelCOLUMNIST

tandel4315aolcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

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m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 7

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Member Member ofOfficial Publication of

Winner Jesse H Neal

Certificates of Merit for Journalistic

Excellence

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

MICHAEL LEVANSGROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Based on some of the tempered opti-mism wersquore reporting this month in our 2011 Industry Outlook therersquos a pretty

good chance you dusted off your suitcase and caught a fl ight to Chicago to attend Pro-Mat 2011 the most comprehensive materials handling trade show event in the US (March 21 to 24)

In fact you just might be reading this column on the show fl oor and if you are I applaud the effort Your attendance and the fact that you found some money in the travel budget further validates our fi ndings that while we may not be back to pre-recession levels in terms of equipment and technology sales we are fi nding more bloom than gloom in the numbers

According to our State of WarehouseDC Equipment and Technology Survey the foun-dation of associate editor Lorie King Rogersrsquo excellent Industry Outlook article (page 24) 51 of respondents report that theyrsquore mov-ing forward with planned investmentsmdashup from a mere 18 in 2010 About half (47) expect 2011 spending to be on par with 2010 while 36 expect that their spending will increasemdashan improvement from the 16 that reported increased spending in 2010

And while those numbers are certainly encouraging I have to admit that I was a bit surprised to fi nd that the median amount respondents are anticipating to spend in 2011 ($77000) actually dropped 8 from last yearrsquos fi ndings

ldquoWith that level of investment yoursquore just making marginal improvementsrdquo says Don Derewecki a business consultant with Tran-Systems and one of the experts who will be putting our fi ndings into perspective during Modernrsquos 2011 Industry Outlook Webcast on March 31 at 100 pm ET (mmhcomout-

look2011) ldquoWhen we dig deeper into these fi ndings we fi nd that only 12 of the respon-dents are planning to spend a million dollars or more so to me that says that only 12 say theyrsquore doing something signifi cantrdquo

On the webcast Derewecki and Mod-ernrsquos executive editor Bob Trebilcock will try to put some perspective around why this level of anticipated spending came in a bit lower in 2011 According to Derewecki one explanation could be that even though economic growth started to turn a corner at the end of 2010 our survey found that therersquos still plenty of available capacity in our respondentsrsquo facilities In fact utilization averages came in at 64 this year a decline from the 65 posted in 2010

Derewecki suggests that this low utilization rate actually has quite a bit to do with the fact that US companies on average have gotten better at demand planning and controlling inventories ldquoCorporate management is guar-anteed to question the need for additional investments when operating at such low ca-pacity utilizationsrdquo adds Derewecki ldquoPeople donrsquot even think of investing until capacity constraints start biting themrdquo

So even with the economy slowly but surely strengthening your challenge is now twofold First you must assess whether or not the equipment and technology operat-ing in this existing capacity supports your future needs Second you must determine the argument for making the investment necessary to meet these new capabilities

And if yoursquore looking for advice for solidifying your equipment and technology investment argument I suggest joining Tre-bilcock and Derewecki on March 31 Even in good times a little investment justifi ca-tion support never hurts

More bloom than gloom

MMH1103_Editorialindd 7 3911 348 PM

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A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

Like to minimize the cost of ownership Ryson can help Our Spiral Conveyors need less floor space than conventional conveyors and are faster and more reliable than any elevator or lift All our products are designed for low maintenance and long life and our proprietary modular construction makes future reconfiguring cost effective

High Capacity Spirals The new Ryson High Capacity Spirals are in response to our customers need to go higher and handle more weight The load capacity is 75 lbs per linear foot of conveyor for speeds up to 200 FPM The total weight capacity in the spiral at any one time is 3600 lbs

Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

Quality and service come first at Ryson We are the number one spiral manufacturer in the USA For application assistance or more information give us a call or visit wwwrysoncom

Save Space and Increase Throughput

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

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blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

MMH1103_LiftTruckTipsindd 14 3911 903 AM

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

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7189101mdashVERSADecktradePlatform Trucks$42100

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

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supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

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bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 6: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

When it comes to fast assembly and breakdown YOUrsquoRE A ONE-MAN SHOW

A NEW KIND OF REUSABLE ALTERNATIVE One person Thatrsquos all it takes to assemble and breakdown Buckhornrsquos revolutionary Maximizertrade Collapsible Container System

Unlike corrugated containers the Maximizer can be reused hundreds of times for shipping and storing light-duty dry goods And its innovative design offers better ergonomics with two full-width access doors

Maximize your companyrsquos productivity cost savings safety space usage and sustainability with Buckhorn

Calculate your savings now at buckhorninccommaximizerOr call 18005434454

US 18005434454Canada 18004617579wwwbuckhorninccomcopy2011 Buckhorn Myers Industries Inc 022411

MMH0311_adsindd 6 3911 904 AM

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Tom AndelCOLUMNIST

tandel4315aolcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 7

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Member Member ofOfficial Publication of

Winner Jesse H Neal

Certificates of Merit for Journalistic

Excellence

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

MICHAEL LEVANSGROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Based on some of the tempered opti-mism wersquore reporting this month in our 2011 Industry Outlook therersquos a pretty

good chance you dusted off your suitcase and caught a fl ight to Chicago to attend Pro-Mat 2011 the most comprehensive materials handling trade show event in the US (March 21 to 24)

In fact you just might be reading this column on the show fl oor and if you are I applaud the effort Your attendance and the fact that you found some money in the travel budget further validates our fi ndings that while we may not be back to pre-recession levels in terms of equipment and technology sales we are fi nding more bloom than gloom in the numbers

According to our State of WarehouseDC Equipment and Technology Survey the foun-dation of associate editor Lorie King Rogersrsquo excellent Industry Outlook article (page 24) 51 of respondents report that theyrsquore mov-ing forward with planned investmentsmdashup from a mere 18 in 2010 About half (47) expect 2011 spending to be on par with 2010 while 36 expect that their spending will increasemdashan improvement from the 16 that reported increased spending in 2010

And while those numbers are certainly encouraging I have to admit that I was a bit surprised to fi nd that the median amount respondents are anticipating to spend in 2011 ($77000) actually dropped 8 from last yearrsquos fi ndings

ldquoWith that level of investment yoursquore just making marginal improvementsrdquo says Don Derewecki a business consultant with Tran-Systems and one of the experts who will be putting our fi ndings into perspective during Modernrsquos 2011 Industry Outlook Webcast on March 31 at 100 pm ET (mmhcomout-

look2011) ldquoWhen we dig deeper into these fi ndings we fi nd that only 12 of the respon-dents are planning to spend a million dollars or more so to me that says that only 12 say theyrsquore doing something signifi cantrdquo

On the webcast Derewecki and Mod-ernrsquos executive editor Bob Trebilcock will try to put some perspective around why this level of anticipated spending came in a bit lower in 2011 According to Derewecki one explanation could be that even though economic growth started to turn a corner at the end of 2010 our survey found that therersquos still plenty of available capacity in our respondentsrsquo facilities In fact utilization averages came in at 64 this year a decline from the 65 posted in 2010

Derewecki suggests that this low utilization rate actually has quite a bit to do with the fact that US companies on average have gotten better at demand planning and controlling inventories ldquoCorporate management is guar-anteed to question the need for additional investments when operating at such low ca-pacity utilizationsrdquo adds Derewecki ldquoPeople donrsquot even think of investing until capacity constraints start biting themrdquo

So even with the economy slowly but surely strengthening your challenge is now twofold First you must assess whether or not the equipment and technology operat-ing in this existing capacity supports your future needs Second you must determine the argument for making the investment necessary to meet these new capabilities

And if yoursquore looking for advice for solidifying your equipment and technology investment argument I suggest joining Tre-bilcock and Derewecki on March 31 Even in good times a little investment justifi ca-tion support never hurts

More bloom than gloom

MMH1103_Editorialindd 7 3911 348 PM

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A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

Like to minimize the cost of ownership Ryson can help Our Spiral Conveyors need less floor space than conventional conveyors and are faster and more reliable than any elevator or lift All our products are designed for low maintenance and long life and our proprietary modular construction makes future reconfiguring cost effective

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Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

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blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

MMH1103_LiftTruckTipsindd 14 3911 903 AM

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

AutomatedVertical

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

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7189101mdashVERSADecktradePlatform Trucks$42100

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4221901mdashPoly ColumnProtectors$20700

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

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supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

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bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 7: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

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lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Tom AndelCOLUMNIST

tandel4315aolcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

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Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 7

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Member Member ofOfficial Publication of

Winner Jesse H Neal

Certificates of Merit for Journalistic

Excellence

EDITORIAL OFFICES111 Speen Street Suite 200Framingham MA 01701-1496(800) 375-8015

Michael LevansGROUP EDITORIAL DIRECTOR mlevansehpubcom

Bob TrebilcockEXECUTIVE EDITOR

roberttrebilcockmyfairpointnet

Noeumll P BodenburgEXECUTIVE MANAGING EDITOR

nbodenburgehpubcom

Lorie King RogersASSOCIATE EDITOR

lrogersehpubcom

Sara Pearson SpecterEDITOR AT LARGE

saramoxiemarketingllccom

Roberto MichelEDITOR AT LARGE

robertomichelnewrrcom

Jeff BermanGROUP NEWS EDITOR

jbermanehpubcom

Josh BondCONTRIBUTING EDITOR

turbobondgmailcom

Mike RoachCREATIVE DIRECTOR

mroachehpubcom

Wendy DelCampoART DIRECTOR

wdelcampoehpubcom

Daniel GuideraILLUSTRATION

danieldanielguideracom

Brian CeraoloGROUP PUBLISHER bceraoloehpubcom

EDITORIAL ADVISORY BOARD

Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE

John HillESYNC

TRANSYSTEMS

Susan RiderRIDER amp ASSOCIATES

Ken RuehrdanzDEMATIC

Dr John Usher UNIVERSITY OF LOUISVILLE

Col Alan B Will2D MARINE LOGISTICS GROUP

Brett WoodTOYOTA MATERIAL HANDLING USA

Peerless Media LLCA DIVISION OF EH PUBLISHING INC

Kenneth MoyesPRESIDENT AND CEOEH PUBLISHING INC

Brian CeraoloPUBLISHER AND EXECUTIVE VICE PRESIDENT

PEERLESS MEDIA LLC

MAGAZINE SUBSCRIPTIONSStart renew or update your FREE magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578Mail Peerless Media PO Box 1496 Framingham MA 01701

eNEWSLETTER SUBSCRIPTIONSSign up or manage your FREE eNewsletter subscriptions at wwwmmhcomenewsletters

MICHAEL LEVANSGROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Based on some of the tempered opti-mism wersquore reporting this month in our 2011 Industry Outlook therersquos a pretty

good chance you dusted off your suitcase and caught a fl ight to Chicago to attend Pro-Mat 2011 the most comprehensive materials handling trade show event in the US (March 21 to 24)

In fact you just might be reading this column on the show fl oor and if you are I applaud the effort Your attendance and the fact that you found some money in the travel budget further validates our fi ndings that while we may not be back to pre-recession levels in terms of equipment and technology sales we are fi nding more bloom than gloom in the numbers

According to our State of WarehouseDC Equipment and Technology Survey the foun-dation of associate editor Lorie King Rogersrsquo excellent Industry Outlook article (page 24) 51 of respondents report that theyrsquore mov-ing forward with planned investmentsmdashup from a mere 18 in 2010 About half (47) expect 2011 spending to be on par with 2010 while 36 expect that their spending will increasemdashan improvement from the 16 that reported increased spending in 2010

And while those numbers are certainly encouraging I have to admit that I was a bit surprised to fi nd that the median amount respondents are anticipating to spend in 2011 ($77000) actually dropped 8 from last yearrsquos fi ndings

ldquoWith that level of investment yoursquore just making marginal improvementsrdquo says Don Derewecki a business consultant with Tran-Systems and one of the experts who will be putting our fi ndings into perspective during Modernrsquos 2011 Industry Outlook Webcast on March 31 at 100 pm ET (mmhcomout-

look2011) ldquoWhen we dig deeper into these fi ndings we fi nd that only 12 of the respon-dents are planning to spend a million dollars or more so to me that says that only 12 say theyrsquore doing something signifi cantrdquo

On the webcast Derewecki and Mod-ernrsquos executive editor Bob Trebilcock will try to put some perspective around why this level of anticipated spending came in a bit lower in 2011 According to Derewecki one explanation could be that even though economic growth started to turn a corner at the end of 2010 our survey found that therersquos still plenty of available capacity in our respondentsrsquo facilities In fact utilization averages came in at 64 this year a decline from the 65 posted in 2010

Derewecki suggests that this low utilization rate actually has quite a bit to do with the fact that US companies on average have gotten better at demand planning and controlling inventories ldquoCorporate management is guar-anteed to question the need for additional investments when operating at such low ca-pacity utilizationsrdquo adds Derewecki ldquoPeople donrsquot even think of investing until capacity constraints start biting themrdquo

So even with the economy slowly but surely strengthening your challenge is now twofold First you must assess whether or not the equipment and technology operat-ing in this existing capacity supports your future needs Second you must determine the argument for making the investment necessary to meet these new capabilities

And if yoursquore looking for advice for solidifying your equipment and technology investment argument I suggest joining Tre-bilcock and Derewecki on March 31 Even in good times a little investment justifi ca-tion support never hurts

More bloom than gloom

MMH1103_Editorialindd 7 3911 348 PM

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A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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Limited Time Offer ndash FREE 30 Day Trial Apply now at wwwthelaserkillercom

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

Like to minimize the cost of ownership Ryson can help Our Spiral Conveyors need less floor space than conventional conveyors and are faster and more reliable than any elevator or lift All our products are designed for low maintenance and long life and our proprietary modular construction makes future reconfiguring cost effective

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Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

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blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

AutomatedVertical

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

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7189101mdashVERSADecktradePlatform Trucks$42100

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

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supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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Roll-Out Shelving bull Seismic Base Isolation

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 8: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Innovative

Integrity Committed Innovative Smart The Intelligrated Way

Innovative Where It Counts At Intelligrated innovative means dedication to a continuous improvement process that transforms ideas research design and engineering into customer success Our industry-leading material handling solutions maximize the value and productivity of your business Engineering for a better ROI Thatrsquos the Intelligrated way

8669367300 wwwintelligratedcominnovative

Innovative

Visit

Inte

lligra

ted

at

ProM

at in

boo

th 2

903 a

nd at

Autom

ate i

n bo

oth

714

We innovate for customer success not for the

next-generation widget

MMH0311_adsindd 8 3911 904 AM

A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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Limited Time Offer ndash FREE 30 Day Trial Apply now at wwwthelaserkillercom

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

Any Task

Any Place

Any Time

Visit us at Booth 4568

Increase Productivity by 15 to 20

Drive Order Accuracy Over 9998

Reduce Operating Costs 10 to 20

Decrease Voice TCO by 45 or More

Give Your Supply Chain A Voice

blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

wwwchdistcommmh

11OFF

chdistcommmhFor details

Prices listedaregoodthroughApril302011 MMH0311V1

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4118821mdashE-Z StorregAll-SteelOrganizers$36200

7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

8828532mdashSteelShelving withClear AkroDrawers

7189101mdashVERSADecktradePlatform Trucks$42100

$90800

4221901mdashPoly ColumnProtectors$20700

4339600mdashCanMeleontradeIndoorOutdoorReceptacles

$4580 $5520

5707800mdashStorage Locker$77400

5511500mdash60x3614000-Lb CapacityWorkbenches

$58990

5576523mdash5-shelfFire-ResistantStorage Cabinets

$309900

$1972007122800mdashManual-levelingSkidLifttradePallet Positioners

7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

7807328mdash1-Tier Locker$45500

4162227mdash36x18x72All-WeldedCabinets

4290609mdashExtra-LargeUltra Poly Bins$2850

42710mdashUltra Poly Bins

$126And up

$31900

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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Carriers are stiffer more slip resistant and

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Carriers put strength just where you need it

helping you cut shipping costs while protecting

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and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

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Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

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that you are ready for the 2013 FCC mandate for narrowband

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 9: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

A NEW PROPOSAL from the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) would remove the exemption from ISPM 15 on wood packaging material moving between Canada and the United States in both directions beginning in 2011 If adopted the proposal will have a signifi cant impact on shipments on pallets

While business regu-lation is out of favor on Capitol Hill this is one new regulation supported by the National Wooden Pallet amp Container Association (wwwpalletcentralcom) ldquoWersquore in favor of itrdquo said Bruce Scholnick president of the in-dustry association ldquoTake it to the next step we are also hopeful that there will be a similar implementation for all domestic shipments That is a stan-dard we have been fi ghting forrdquo

Right now pallets move back and forth between Canada and the United States without the special

treatment thatrsquos required under ISPM 15 This regulation requires that wood packaging material being shipped internationally be heat-treat-ed to kill insects or larvae that could

infest native woodlands The pro-posed amendment posted by APHIS on Dec 2 2010 would remove the exemption that currently allows wood packaging material to ship between Canada and the United States with-out fi rst meeting the treatment and marking requirements of ISPM 15 that apply to wood packaging mate-

rial to and from all other countries ldquoThis action is necessary in order to prevent the dissemination and spread of pests via wood packaging material from Canadardquo APHIS stated

Similarly the Canadian Food Inspection Agency (CFIA) announced that it has agreed with APHIS to a ldquoharmonized approach to remov-ing the exemption from ISPM 15 on wood packaging material moving between Canada and the US (both directions)rdquo

According to CFIA the require-ments would be phased in between 2011 and 2112 with full implementa-tion in place by the summer of 2012 although ldquono actual time frames have

been confi rmed at this daterdquo

Scholnick said the proposal will have no ef-fect on companies that are already shipping inter-nationally ldquoThey have a system in place to source heat-treated palletsrdquo he said ldquoTheyrsquoll just have to ship them to Canadardquo For shippers not currently heat treating Scholnick said the process adds 50 to 75 cents to a pallet

Why is NWPCA in support of the regulation ldquoWe believe the spread of pests primarily happens when logs or fi rewood are shipped back and forth but pallets also get blamedrdquo said Scholnick ldquoIf we have a standard that requires all pallets to be heat treated even domestically it will take that issue off the tablerdquo

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 9

Company Briefi ngs | Bob Trebilcock How to submit a column to Other Voices wwwmmhcomblogs

Diblogbest of Modernrsquos blogs

BY BOB TREBILCOCK EXECUTIVE EDITOR

PALLETS amp PACKAGING

New rules for shipping to CanadaIF ADOPTED WOOD PACKAGING MATERIALS MUST MEET ISPM 15 REGULATIONS FOR HEAT TREATMENT BEFORE CROSSING BORDERS

MMH1103_newsindd 9 3911 906 AM

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

PHOENIX FLEX LED

wwwphoenixproductscom

Smart good looking and low maintenance

Check out its durability at

youtubecomphoenixproducts

ECONOMY

ISM reports 21 months of manufacturing growth

MMH1103_newsindd 10 3911 906 AM

COGNEX CORPORATION PRESENTS THE DATAMAN 500 BARCODE READER

ldquoHIGHER READ RATES ndash READS THE BARCODES THAT LASER SCANNERS CANNOT READrdquo

ldquoEASIER TO USE THAN A LASER SCANNER ndash YOU CAN SEE WHAT THE READER SEESrdquo

ldquoNO MOVING PARTS ndash DESIGNED TO BE MORE RELIABLE THAN A LASER SCANNERrdquo

ldquoSET TO DOMINATE CODE READING IN THE LOGISTICS RETAIL DISTRIBUTION AND POSTAL MARKETSrdquo

GUEST STAR IDMAXreg (The hottest barcode reading software known to man) FEATURING HIGHEST READ RATES SUPPORTED BY AUTO-FOCUS AUTO-TRIGGER AUTO-TRACKINTRODUCING 1000 FRAMESSEC SIMPLE TO USE ldquoNO READrdquo FEEDBACK and ETHERNET NETWORKING Includes the hit songs ldquoThe Power of Sightrdquo and ldquoCanrsquot Live with Just a Line of Lightrdquo

Limited Time Offer ndash FREE 30 Day Trial Apply now at wwwthelaserkillercom

NOTHING LIKE THIS HAS EVER BEEN SEEN BEFORE IN AN IMAGE-BASED BARCODE READERNOTHING LIKE THIS HAS EVER BEEN SEEN BEFORE IN AN IMAGE-BASED BARCODE READER

NOW ON GENERAL RELEASE

FOR USE ON WHITE BACKGROUND FOR USE ON IMAGE-BASED BACKGROUND (eg advert or brochure)

FOR USE ON BLACKBACKGROUND FOR USE ON LIGHT COLOURED BACKGROUND

Subject to applicable terms

DM500 LK Ad_7875x105 ENGindd 1 06122010 1123MMH0311_adsindd 11 3911 158 PM

12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

Like to minimize the cost of ownership Ryson can help Our Spiral Conveyors need less floor space than conventional conveyors and are faster and more reliable than any elevator or lift All our products are designed for low maintenance and long life and our proprietary modular construction makes future reconfiguring cost effective

High Capacity Spirals The new Ryson High Capacity Spirals are in response to our customers need to go higher and handle more weight The load capacity is 75 lbs per linear foot of conveyor for speeds up to 200 FPM The total weight capacity in the spiral at any one time is 3600 lbs

Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

Quality and service come first at Ryson We are the number one spiral manufacturer in the USA For application assistance or more information give us a call or visit wwwrysoncom

Save Space and Increase Throughput

See our Spirals run at ProMat 2011 Booth 1523

Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

Any Task

Any Place

Any Time

Visit us at Booth 4568

Increase Productivity by 15 to 20

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Give Your Supply Chain A Voice

blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

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16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

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MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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supply-chain solutions evolved over nine

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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027_MMH1P4cindd 1 2111 101609 AMMMH0311_adsindd 35 3911 904 AM

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

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300 wide Low in cost per

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Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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Brian ceraolopublisher bceraoloehpubcom

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

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To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 10: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

10 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

MOMENTUM IN THE manufacturing sector is continuing at a strong pace based on the most recent results of the Institute for Supply Manage-mentrsquos (ISM) February Manufacturing Report on Business

The index used by ISM to measure the manufacturing sectormdashknown as the PMImdashwas 614 in February which was up from Januaryrsquos 608 This matches the highest PMI level since May 2004

Any reading 50 or higher repre-sents economic growth and January is the 21st consecutive month eco-nomic growth has occurred according to the report February represents the seventh straight month of month-over-month growth in the manufactur-ing sector according to the ISM

ldquoNew orders and production driven by strength in exports in par-

ticular continue to drive the composite index (PMI)rdquo said Norbert J Ore chair of the Institute for Supply Manage-ment Manufacturing Business Survey Committee ldquoNew orders are growing signifi cantly faster than inventories and the Customersrsquo Inventories Index indicates supply chain inventories will require continuing replenishment The Employment Index is above 60 for only the third time in the last decade While there are many positive indica-tors there is also concern as industries related to housing continue to struggle and the Prices Index indicates sig-nifi cant infl ation of raw material costs across many commoditiesrdquo

In the February report New Orders at 68 were up 02 and Production at 663 was up 28 Employment at 645 was up 28 Inventories were down 36 at 488

and Customersrsquo Inventories at 400 were off by 55 Backlog of orders was up 1 at 590 and Prices at 82 inched up 05

While the PMI matched its highest reading in nearly seven years Ore explained that marketplace condi-tions for these two readings are ldquodramatically differentrdquo as in 2004 the economy was emerging from the shadows of the Y2K recession followed by a solid 2002 recovery year and a not as good 2003 Whatrsquos more in 2004 there was a lot of what Ore described as ldquobuyer panicrdquo for commodities which resulted in a fair level of artifi cial demand

But in 2011 he explained that supply is more closely aligned with demand with global demand being fairly strong and there is not as much concern over buyer demand driving economic activity

ldquoNew Orders and Production both showed improvements over

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ISM reports 21 months of manufacturing growth

MMH1103_newsindd 10 3911 906 AM

COGNEX CORPORATION PRESENTS THE DATAMAN 500 BARCODE READER

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ldquoEASIER TO USE THAN A LASER SCANNER ndash YOU CAN SEE WHAT THE READER SEESrdquo

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ldquoSET TO DOMINATE CODE READING IN THE LOGISTICS RETAIL DISTRIBUTION AND POSTAL MARKETSrdquo

GUEST STAR IDMAXreg (The hottest barcode reading software known to man) FEATURING HIGHEST READ RATES SUPPORTED BY AUTO-FOCUS AUTO-TRIGGER AUTO-TRACKINTRODUCING 1000 FRAMESSEC SIMPLE TO USE ldquoNO READrdquo FEEDBACK and ETHERNET NETWORKING Includes the hit songs ldquoThe Power of Sightrdquo and ldquoCanrsquot Live with Just a Line of Lightrdquo

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

Like to minimize the cost of ownership Ryson can help Our Spiral Conveyors need less floor space than conventional conveyors and are faster and more reliable than any elevator or lift All our products are designed for low maintenance and long life and our proprietary modular construction makes future reconfiguring cost effective

High Capacity Spirals The new Ryson High Capacity Spirals are in response to our customers need to go higher and handle more weight The load capacity is 75 lbs per linear foot of conveyor for speeds up to 200 FPM The total weight capacity in the spiral at any one time is 3600 lbs

Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

Quality and service come first at Ryson We are the number one spiral manufacturer in the USA For application assistance or more information give us a call or visit wwwrysoncom

Save Space and Increase Throughput

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

Any Task

Any Place

Any Time

Visit us at Booth 4568

Increase Productivity by 15 to 20

Drive Order Accuracy Over 9998

Reduce Operating Costs 10 to 20

Decrease Voice TCO by 45 or More

Give Your Supply Chain A Voice

blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

MMH1103_LiftTruckTipsindd 14 3911 903 AM

11YL

E347

6

11YL

E347

6

YOU NEED TRUCKS THAT ARE JUST LIKE YOUR BEST OPERATORS

HARDWORKING DEPENDABLE AND RELIABLE

MEET OUR COMPLETE LINE OF WAREHOUSE OVERACHIEVERS

PROBLEM SOLVED

In the warehouse industry productivity is paramount Thatrsquos why our complete line of lift trucks is engineered to keep product moving quickly and ef ciently while keeping operators comfortable and productive Every one of our trucks is designed with the needs of your operation in mind Itrsquos no wonder that research shows a majority of Yale owners are so satis ed with their trucks they wouldnrsquot change brands Find out more at Yalecom

YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

8828532mdashSteelShelving withClear AkroDrawers

7189101mdashVERSADecktradePlatform Trucks$42100

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4221901mdashPoly ColumnProtectors$20700

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5707800mdashStorage Locker$77400

5511500mdash60x3614000-Lb CapacityWorkbenches

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5576523mdash5-shelfFire-ResistantStorage Cabinets

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7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Carriers are stiffer more slip resistant and

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Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

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Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

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cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 11: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

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12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

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Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

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blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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Prices listedaregoodthroughApril302011 MMH0311V1

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

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30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

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027_MMH1P4cindd 1 2111 101609 AMMMH0311_adsindd 35 3911 904 AM

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 12: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

12 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING m m h c o m

300 Newsome Drive bull Yorktown VA 23692Phone (757) 898-1530 bull Fax (757) 898-1580

VERTICAL CONVEYING SOLUTIONS

Like to minimize the cost of ownership Ryson can help Our Spiral Conveyors need less floor space than conventional conveyors and are faster and more reliable than any elevator or lift All our products are designed for low maintenance and long life and our proprietary modular construction makes future reconfiguring cost effective

High Capacity Spirals The new Ryson High Capacity Spirals are in response to our customers need to go higher and handle more weight The load capacity is 75 lbs per linear foot of conveyor for speeds up to 200 FPM The total weight capacity in the spiral at any one time is 3600 lbs

Multiple Entry Spirals The Multiple Entry Spirals allow loads to enter the spirals from several different elevations A new high speed induction conveyor provides controlled spiral entry The conveyor belts are individually adjustable to match the spiral pitch

Quality and service come first at Ryson We are the number one spiral manufacturer in the USA For application assistance or more information give us a call or visit wwwrysoncom

Save Space and Increase Throughput

See our Spirals run at ProMat 2011 Booth 1523

Januaryrdquo said Ore ldquoThese numbers are signifi cantly better than I would have expected three months ago We have seen seven consecutive months of [sequential] growth I am not sure how long that can continuemdashor if it will even go another monthmdashbut it is not necessarily a bad thing if it does notrdquo

Given the current level of prices coupled with pricing power a little bit of a slowdown could be a good thing at this point Ore explained

While economic momentum from the holidays so far has carried into the new year with consumer con-fi dence hitting its highest levels in

three years Ore said that close at-tention needs to be paid to oil prices in terms of how it could impact growth Clarity with business tax code issues reported in December though should provide businesses with better ability to make decisions regarding investments

ldquoThe dark cloud on the horizon now is what is going to happen in the Middle East and how much of an impact that is going to have on oil pricesrdquo said Ore ldquoAn economist told me that in his view an increase in oil prices is really a tax on growth And the more oil and gasoline prices go up the more we will see consum-er confi dence level off or drop as well as available disposable income which becomes a big issue for a lot of peoplerdquo

Looking at Februaryrsquos inventory levels Ore said while manufacturers spent 2010 trying to catch up on in-ventory they did not get there based on the data And with January and February posting strong numbers he said there is a bit of an inventory liquidation occurring through a de-stocking of inventory because New Order levels are so high

And with a 192 percentage point difference between New Orders and Production in February Ore said that represents inventory levels being lost to current production

ldquoAt that level I would expect that there is some de-stocking taking place out of existing inventories when inventories are being re-builtrdquo he said While the ISM data is posting very positive numbers Ore cautioned they are at very lofty levels especially for metrics like New Orders Production and Employment He said it is unlikely that the current growth rate can be sustained and he said he fully expects to see the trend to start heading downward in the next few months

ldquoThat is not necessarily a bad thing because we are at very high levels and the nature of this index is that once we get to this level it is going to start to drop off and trend downwardrdquo said Ore

MMH1103_newsindd 12 3911 906 AM

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

Any Task

Any Place

Any Time

Visit us at Booth 4568

Increase Productivity by 15 to 20

Drive Order Accuracy Over 9998

Reduce Operating Costs 10 to 20

Decrease Voice TCO by 45 or More

Give Your Supply Chain A Voice

blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

MMH1103_LiftTruckTipsindd 14 3911 903 AM

11YL

E347

6

11YL

E347

6

YOU NEED TRUCKS THAT ARE JUST LIKE YOUR BEST OPERATORS

HARDWORKING DEPENDABLE AND RELIABLE

MEET OUR COMPLETE LINE OF WAREHOUSE OVERACHIEVERS

PROBLEM SOLVED

In the warehouse industry productivity is paramount Thatrsquos why our complete line of lift trucks is engineered to keep product moving quickly and ef ciently while keeping operators comfortable and productive Every one of our trucks is designed with the needs of your operation in mind Itrsquos no wonder that research shows a majority of Yale owners are so satis ed with their trucks they wouldnrsquot change brands Find out more at Yalecom

YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

8828532mdashSteelShelving withClear AkroDrawers

7189101mdashVERSADecktradePlatform Trucks$42100

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4221901mdashPoly ColumnProtectors$20700

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$4580 $5520

5707800mdashStorage Locker$77400

5511500mdash60x3614000-Lb CapacityWorkbenches

$58990

5576523mdash5-shelfFire-ResistantStorage Cabinets

$309900

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7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

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supply-chain solutions evolved over nine

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

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Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 13: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

m m h c o m MODERN MATERIALS HANDLING M A R C H 2 0 1 1 13

To learn more about how Datria can help you go to wwwdatriacom

or call 8005839509

Any Voice

Any Task

Any Place

Any Time

Visit us at Booth 4568

Increase Productivity by 15 to 20

Drive Order Accuracy Over 9998

Reduce Operating Costs 10 to 20

Decrease Voice TCO by 45 or More

Give Your Supply Chain A Voice

blogwayExcerpts from executive editor Bob Trebilcockrsquos bloggo to wwwmmhcom for complete posts

Materials handling comes to the Food Network (Well sort of)How cool is materials handling So cool that Food Network star Giada De Laurentiis plans to visit the Ap-plied Technology Center in Rock Hill SC where high school students are learning warehousing and distribution basics Now that Irsquove made you all feel like your kids will no longer be embar-rassed when they explain what their parents do for a living truth is that Giada is bringing her fi lm crew to the Applied Technology Center to learn more about Back the Pack a program I wrote about back in December

MampA materials handling style Want to know where all that corpo-rate cash we hear about sitting on the sidelines is going Try the materi-als handling industry The last couple of years have seen more merger and acquisition activity in the materials handling industry than I can ever remember seeing

Daifuku got the ball rolling in 2007 when it acquired Jervis B Webb That was followed by Intel-ligratedrsquos purchase of FKI in the spring of 2009 and the acquisition of Diamond Phoenix by System Logistics that fall Last summer

Modern has launched Other Voices a new blog that will broaden our conversation with our readers Once a week wersquoll open up a spot on our website to feature a guest

contribution from end users consultants and solution providers Surprise us with an insight Wersquore looking for trends and insights not new product announcements or press releases If you have a column already written feel free to send it to Bob Trebilcock (Roberttrebilcockmyfairpointnet) or Noeumll Bodenburg (nbodenburgehpubcom)Letrsquos get the conversation going

Dematic acquired HK Systems Just last week Savoye a subsidiary of Groupe Legris acquired Retrotech

In the pallet industry Brambles the parent company of CHEP intends to acquire IFCO and CAPS and PECO Pallet was acquired by a pri-vate equity fi rm I know Irsquom leaving out a few deals in the rack and lift truck industries

Itrsquos as if the old geezers are now the most popular dance partners at the sock hop

MMH1103_newsindd 13 3911 906 AM

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

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16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

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MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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027_MMH1P4cindd 1 2111 101609 AMMMH0311_adsindd 35 3911 904 AM

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

salesmmhidlabelinccomToll-free 8005418506 x100wwwidlabelinccom

ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

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programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

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Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

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Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

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See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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Business staff

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Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 14: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

14 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

lift truck TIPS

We all wish the process of fueling up at the gas pump was a bit speedier if only to dull the pain of watching dollars trickle away At least

it doesnrsquot take 16 hours like it does for a lift truck bat-tery to be charged cooled and sent back to work In the warehouse fast-charge and opportunity-charge systems aim to make recharging a battery as convenient as visiting a gas station and the science behind each technology might even help keep costs down

Both fast-charge and opportunity-charge systems use decentralized power sources to bring the power to the truck where the battery stays put But key differences in infrastructure charge rates and warehouse rhythm will give each technology advantages depending on the operation

According to Kenro Okamoto electric product plan-ning specialist for Toyota Material Handling the primary difference between fast charging and any other charging technology is the continuous communication between the battery and charger Conventional chargers which do not extensively communicate with the battery use a simple repetitive charging algorithm designed to take the battery to a 100 state of charge ldquoIf you hook a battery up to a conventional charger that charger is blindrdquo says Okamoto ldquoIt just runs through the motions and blasts the batteryrdquo

A fast-charging system however is constantly adjust-ing the amperage going into the battery based on its temperature charge level and even the electrolyte level in the pack

ldquoA battery with the exception of the equalization process is optimally charged between 80 to 85rdquo says Okamoto

No battery should be run below 20 he adds A lift truckrsquos performance will be reduced before a battery gets that low but Okamoto says that doesnrsquot stop many operations from running their batteries to the bitter end ldquoI have seen many applications that have experienced high battery turnover and short battery life These con-ditions are usually attributed to operations that continu-

ally run their batteries to below a 20 state of chargerdquo Okamoto says

Although opportunity charging has minimal bat-tery monitoring capabilities setups often require fewer up-front installment costs Fast-charge infrastructure can include electric substations and significant costs

When speed is essential the fast-charge setup will boast recharging speeds as much as four times that of conventional systems According to Okamoto conven-tional charging delivers 16 to 18 amps at 100 amphours opportunity charging 25 amps and fast-charging 40 to 60 amps Fast-chargers typically use a dual-connector for power delivery allowing double the power flow

A fast-charge batteryrsquos inter-cell connectors also use copper as well as lead for enhanced conductivity

Depending on the rhythm of an operation fast-charging and opportunity-charging could keep a battery charged at between 25 to 85 at all times prolonging battery life increasing uptime and improving operator productivity Unlike a trip to the gas station itrsquos enough to put a smile on your face

An outlet for charging frustrationsCharging alternatives bring the power from the battery room to the operatorrsquos fingertips

By Josh Bond Contributing Editor

Josh Bond is a contributing editor to Modern and can be reached at joshdbondgmailcom

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YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

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16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

wwwchdistcommmh

11OFF

chdistcommmhFor details

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4118821mdashE-Z StorregAll-SteelOrganizers$36200

7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

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7189101mdashVERSADecktradePlatform Trucks$42100

$90800

4221901mdashPoly ColumnProtectors$20700

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$4580 $5520

5707800mdashStorage Locker$77400

5511500mdash60x3614000-Lb CapacityWorkbenches

$58990

5576523mdash5-shelfFire-ResistantStorage Cabinets

$309900

$1972007122800mdashManual-levelingSkidLifttradePallet Positioners

7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

7807328mdash1-Tier Locker$45500

4162227mdash36x18x72All-WeldedCabinets

4290609mdashExtra-LargeUltra Poly Bins$2850

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$126And up

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

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helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

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Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

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cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

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MMH0311_adsindd 3 3911 904 AM

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The intelligent dynamic storage lift system for high density storage in a compact footprint

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 15: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

11YL

E347

6

11YL

E347

6

YOU NEED TRUCKS THAT ARE JUST LIKE YOUR BEST OPERATORS

HARDWORKING DEPENDABLE AND RELIABLE

MEET OUR COMPLETE LINE OF WAREHOUSE OVERACHIEVERS

PROBLEM SOLVED

In the warehouse industry productivity is paramount Thatrsquos why our complete line of lift trucks is engineered to keep product moving quickly and ef ciently while keeping operators comfortable and productive Every one of our trucks is designed with the needs of your operation in mind Itrsquos no wonder that research shows a majority of Yale owners are so satis ed with their trucks they wouldnrsquot change brands Find out more at Yalecom

YALE is a Registered Trademark is a registered copyrightcopyYale Materials Handling Corporation 2011 All Rights Reserved

2994_11YLE3476_WHF_MMHindd 1 22511 908 AMMMH0311_adsindd 15 3911 904 AM

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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MMH1103_SysRptCOKEindd 20 3911 907 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

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7189101mdashVERSADecktradePlatform Trucks$42100

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4221901mdashPoly ColumnProtectors$20700

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5511500mdash60x3614000-Lb CapacityWorkbenches

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5576523mdash5-shelfFire-ResistantStorage Cabinets

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7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

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MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

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supply-chain solutions evolved over nine

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

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Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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Roll-Out Shelving bull Seismic Base Isolation

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

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cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 16: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

16 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

MODERN system report

Mike Jacks senior manager of logistics systems

MMH1103_SysRptCOKEindd 16 3911 907 AM

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

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24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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Call 877-ABF-0000 or visit abfcom

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MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

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Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

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Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

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cost-effective recommendations They can even make sure

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

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The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

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MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 17: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 17

Pho

tog

raphy B

y Cy C

yrGetty Im

ages

EBy Bob Trebilcock Executive Editor

To revitalize its distribution processes Coca-Cola Refreshments USA implemented a VoIP-based voice technology that enables 3000 warehouse associates in 100 facilities

Cokersquos new take on voice

verything about Coca-Cola Refreshments USA (CCR) the subsidiary that manufactures and distributes Coca-Cola products

in North America is big The company is the largest manu-

facturer and distribution point in the world for the largest soft drink producer in the world CCR manages some 600 Coca-Cola brands and thousands of different beverages producing 53 bil-lion cases a year It has some 65000 employees working in 630 facilities around the country and makes more than 50000 deliveries a day with a fleet of 30000 vehicles

And some 3000 of those employees working in 100 facilities that each han-dles more than 75 million cases a year are directed by a voice over Internet protocol (VoIP) voice recognition sys-tem (Datria wwwdatriacom) when they are picking orders

Yes you read that correctly One voice system is managing 3000 employ-ees working in 100 facilities As large as that sounds CCR is not done and intends to enable more workers across

the enterprise and more tasks down the road ldquoBasically anything you can do on a keyboard in our SAP enterprise resource planning (ERP) system can be done in voice including picking and putaway shipping and directing our drivers and service techs in the fieldrdquo says Rick Gross director of supply chain development

The results also include big num-bers ldquoWe are maintaining the 998 shipping accuracy that many of our large customers require and we are 100 accurate in a number of our facil-itiesrdquo says Mike Jacks CCRrsquos senior manager of logistics systems ldquoWe also estimate that we avoided $2 million in capital expenditures because we were able to use off-the-shelf phones and headsets versus the cost of a mobile computer and headset associated with traditional voicerdquo

To be sure there are pros and cons to a VoIP solution and VoIP may not be right for every warehouse and distribu-tion center Steve Banker an analyst with ARC Advisory Group (wwwarc-webcom) argues that the sheer size

and sophistication of CCRrsquos operations made it a prime candidate to success-fully deploy a VoIP approach The fact that CCR had already made a decision to standardize its enterprise on VoIP technology prior to extending it to its distribution operations for instance was a key enabler Banker believes most distribution centers may still be better suited to traditional voice

Still voice is an evolving space As the price of the hardware and technologies associated with VoIP come down and the systems become more user friendly and

CCRrsquos voice system uses voice over IP phones

MMH1103_SysRptCOKEindd 17 3911 907 AM

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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MMH0311_adsindd 19 3911 904 AM

20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

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MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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027_MMH1P4cindd 1 2111 101609 AMMMH0311_adsindd 35 3911 904 AM

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

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Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

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See us at Promat 2011Booth 4214

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Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

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Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

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locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 18: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

18 M A R C H 2 0 1 1 MODERN MATERIALS HANDLING mmhcom

easy to implement it may give traditional voicemdashwhere industry-leader Vocollect continues to gain market sharemdasha run for its money CCR for instance rolled out all 100 locations in just 18 months including a two-month pilot

Herersquos the story of how CCR set-tled on a VoIP solution and why this approach met its needs

Driven by accuracyFor more than 100 years the Coca-Cola bottling system in North America relied on a manual pick operation Most recently order selectors swiped an identification card at a kiosk to receive a paper printout of their work assignments and then went about the job of filling orders from paper Filling orders meant pulling full pallets from a storage location and delivering them to the shipping dock In that type of envi-ronment paper was up to the job

But full pallets are no longer CCRrsquos operating environment Over the last decade every beverage producer has added more and more products and offered them in more and more pack-aging configurations At the same time retailers no longer want to receive and stock a full pallet of each product They want mixed pallets with just enough of each product to satisfy demand in the short run And they increasingly

demand accuracy rates of up to 998 as shippers pay dearly for order mistakes

ldquoAs we started adding more pack-ages to our warehouse our order pro-file changedrdquo says Jacks ldquoNow 80 of our volume is mixed case pallet loads Our warehouses could no lon-ger accommodate the volume by doing things manuallyrdquo Whatrsquos more in many locales expanding those facilities was not an option even had CCR wanted to add distribution space ldquoWe have prime locations in most major citiesrdquo says Jacks ldquoBut in many locales those facilities are landlockedrdquo

Throughput however wasnrsquot the only issue With more complex order fulfillment requirements it became more costly to maintain the accuracy rates required by CCRrsquos biggest cus-tomers ldquoOur retail customers demand 998 accuracy on automated ship notice (ASN) shipments and if your accuracy falls below 995 you canrsquot remain on the ASN programrdquo says Gross ldquoTo achieve our customersrsquo accu-racy targets we had to put additional people in place to check orders We are a Six Sigma company and that addi-tional checking is a wasterdquo

Selecting voice In 2007 CCR began to investigate dif-ferent technologies that would improve

accuracy without sacrificing efficiency ldquoWe targeted the largest 100 facilitiesrdquo says Jacks ldquoSince there are a wide vari-ety of facilities in terms of age sophis-tication and layout we needed a solu-tion that was flexible enough to adapt to all of those different scenariosrdquo After investigating voice pick-to-light RFID and bar code scanning they agreed they wanted a solution that allowed for heads-up hands-free operation by the order selectors Voice made the most sense ldquoBar code scanning delivered the accuracy we wanted but it wasnrsquot hands freerdquo says Jacks ldquoRFID wasnrsquot economi-cal and most of our facilities werenrsquot set up to accommodate pick-to-lightrdquo

Voice on the other hand allowed order selectors to work hands free Whatrsquos more says Gross with the ubiq-uity of cell phones ldquovoice is a natural form of communication today People are used to talking on their cell phones and using headsetsrdquo

CCRrsquos initial investigation of voice led it to the leading providers of tradi-tional voice solutions for the warehouse as well as tours of a number of food warehouses using traditional voice solu-tions Jacks and Gross initially assumed thatrsquos the direction they would take At the same time CCR had made a corpo-rate commitment to a VoIP infrastruc-ture for its business Once the voice

An order selector begins by logging on to a VoIP phone

The order selector is then directed by the phone to a picking location

After orders are picked the selector prints out labels at a kiosk

The order selector is then directed by

MMH1103_SysRptCOKEindd 18 3911 907 AM

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

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24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

salesmmhidlabelinccomToll-free 8005418506 x100wwwidlabelinccom

ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

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programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

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Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

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Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 19: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

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20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

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24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

salesmmhidlabelinccomToll-free 8005418506 x100wwwidlabelinccom

ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

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Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

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Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 20: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

20 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

team began talking to SAP Cisco and Avaya CCRrsquos strategic partners for its voice infrastructure they decided to create their own solution ldquoWe found there were a lot of similarities in the way that voice providers deployed their solutionrdquo says Jacks ldquoWe have a sophisticated IT staff and felt we could leverage our infrastructure and come up with something ourselvesrdquo

In the spring of 2007 the group was in the process of evaluating ven-dors for the different components they would need when several members attended SAPrsquos annual user conference in Orlando During a meeting with SAP they learned about Datriarsquos VoIP voice solution That was followed by a trip to Denver and a challenge to the voice pro-vider to develop a server-based solution that would integrate with SAP deliver instructions to workers within CCRrsquos workflow structure use off-the-shelf hardware and leverage CCRrsquos existing VoIP infrastructure Six weeks later Datria came up with an application

Going live with voice The primary difference between CCRrsquos solution and a traditional voice solution is in where the voice application resides (for a more detailed explanation see p 22) In a traditional voice application an instance of the software resides on every operatorrsquos mobile computer which is typically worn on a belt In a VoIP solution one instance of the software is loaded onto a central server Instead of a mobile computer a mobile worker dials into the solution with a VoIP handsetmdashin essence an industri-alized cell phone

Where many voice solutions use pro-prietary mobile computing devices and headsets a VoIP solution works with off-the-shelf handsets These are consider-ably less expensive than traditional voice hardware There is however a tradeoff A company may need to build out a WiFi infrastructure to accommodate the VoIP solution Indeed CCR realized it would have to provide additional access points in each facility to work with the new system However since CCR had already committed to VoIP on a corpo-rate-wide basis most of the infrastruc-

ture was already in place and paid for In this instance the distribution operations could leverage an investment the corpo-ration had already made

Remember those big numbers we talked about in the introduction Despite the quick turnaround by Datria CCR wanted to prove the solution before com-mitting to an approach that had not been done on this scale in the past

The bottler launched two 60-day pilots to pit VoIP against traditional voice a pilot in Jacksonville Fla got underway on June 15 2007 while a competing pilot began on July 15 in Ft Worth Texas In August halfway through the second pilot CCR had enough data to commit to VoIP

Over the next month CCR iden-tified 23 sites for the initial roll out in addition to Ft Worth and Jacksonville and organized four deployment teams The actual deployments got underway in September and by the end of December 25 sites were up and running

By the end of 2008 the voice system was up and running in an additional 75 facilities bringing the total to 100

ldquoWe went from zero to 3000 employees using the voice system in just 18 monthsrdquo says Jacks

Lessons learned As with any early adopter of a technol-ogy there have been lessons learned

One is that the system is very much speech independent In a traditional voice implementation a process known as speech dependent each user records a sample of his voice In a speech inde-pendent implementation those voice samples are unnecessary

Yet CCR says that its system will pick up just about anyonersquos voice ldquoWe had a person on our team who spoke English with a heavy French accentrdquo says Jacks ldquoI dialed in did some pallet picks and then handed the phone to that person He was able to pick up where I left offrdquo Not having to record speech samples for 3000 separate employees sped up the implementation process

At the same time some experimen-tation was involved in getting a phone suitable for an industrial setting For instance CCR initially was getting just

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mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

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24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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027_MMH1P4cindd 1 2111 101609 AMMMH0311_adsindd 35 3911 904 AM

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

salesmmhidlabelinccomToll-free 8005418506 x100wwwidlabelinccom

ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

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Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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DONrsquoT COST-THEY PAY

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infoaignerindexcom

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L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

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or a slingerright or left

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Brian ceraolopublisher bceraoloehpubcom

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 21: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom Modern Materials Handling M a r c h 2 0 1 1 21

modern system report

Several different components at the corporate and facility level come together to enable the VoIP

voice recognition solution at Coca-Cola Refreshments USA (CCR)

The voice application (Datria wwwdatriacom) is hosted on a bank of servers (1) at the companyrsquos corporate data cen-ter in Atlanta That site also houses the companyrsquos enterprise resource planning (ERP) software system (2) and the pri-vate branch exchange (3) or PBX which is the telephone exchange that serves Coca-Colarsquos internal telephones and con-nects to an external public network

A second server (4) located in each of the 100 facilities using the voice system hosts the speech recognition text-to-speech application This is the application that translates a VoiceXML page created by the voice application into voice instructions for workers Each facility also has a router (5) that acts as a browser for the VoiceXML pages Finally communication takes place within both the corporate data center and the facilities over the wire-less local area network (LAN) (6) Communication between the corpo-rate data center and the facilities takes place over a corporate wide area net-work (WAN) (7)

Thatrsquos the basic voice infrastructure Herersquos how the components all come together to fulfill orders

In the corporate data center orders are passed back and forth between the ERP system and the voice application to create an order in a VoiceXML page format The VoiceXML pages are routed by the PBX system from the LAN at the

data center to the WAN and then to the LAN at the appropriate facilities to fill the orders Once they are received at the facility they are routed over the wireless LAN to the speech technolo-gies server where they are turned into voice instructions

Prior to voice an order selector would log into a kiosk in the warehouse by swiping a card The system would then print out a paper pick list Today the order selector begins the shift by selecting a VoIP telephone and head-set (8) Each phone has an IP address When the worker logs on a telephone connection is established with the local server He will also use the speed dial function to choose to receive instruc-tions in English Spanish or French At that point he will be asked by the system for his ID Based on the order selectorrsquos profile the system will give the order selector the next order to be picked From the time the selector dials into the system he will be connected in one continuous call unless he goes on break goes to lunch or clocks out

The selector is then directed by voice to a slot location for picking (9) The selectors use man aboard pal-let jacks and pick to a pallet Once the selector arrives at a location he is asked to speak the slot number and a check digit into the headset when the digit is confirmed the system tells him what quantity and what product should be picked

four to five hours out of a battery through some adjustments the team figured out workarounds to get 12 hours between charges By then Jacks says Cisco came out with an extended life battery that is good for 16 hours

Initially CCR had to have individual battery chargers for each phone that was going to be charged Since then Cisco has developed a six-port charger that will hold two batteries per port or 12 batteries at a time

Likewise the initial off-the-shelf phones were designed for call centers and not a rugged industrial setting CCR workers regularly wore out the jacks on the phone Today after work-ing with Cisco engineers CCR is using a Bluetooth-enabled ruggedized phone with a battery-powered Bluetooth head-set that is doing the job

As to the $2 million in hardware savings Jacks and Gross agree that the installation required more access points to get the density of coverage required than would be required in a typical RF warehouse using bar code scanning Those additional costs however were more than offset by the savings on hardware Thatrsquos where the scale of the CCR implementation comes in to play ldquoTo enable 3000 workers across mul-tiple shifts we purchased 3000 hand-held devicesrdquo says Gross ldquoThe savings across that many units was substantialrdquo

Now that picking operations have been enabled CCR is developing a strategic roadmap for extending voice to other processes in its distribution and logistics operations Route delivery is a possibility Field service is another There are other transactions in the SAP warehouse management system that might also be enabled by voice ldquoBecause we have this architecture in place if we have a solution that is going to drive a significant ROI we can make a recommendation and accelerate the adoptionrdquo says Gross

And while VoIP may not be right for everyone it has delivered for CCR ldquoAll of the benefits we anticipated from a savings on the hardware to improved accuracy and efficiency wersquore realiz-ingrdquo says Jacks M

Coca-Cola Refreshments USAAtlanta Ga Brands CCr bottles more than 600 brandssKUs more than 2000tHroUgHpUt 53 billion cases per yearloCations 630 facilities in north americandash voice has been implemented at 100 of the 350 facilities handling more than 75 million cases per yeareMployees 65000 with 3000 using the voice system

How VoIP works at Coca-Cola The system uses wide area and local area networks to direct operations on the floor of warehouses across the enterprise

System suppliersVoice recognition technology datria wwwdatriacom

ERP sap wwwsapcom

Voice mobile devices Cisco wwwciscocom

Electric pallet jacks Cat lift trucks wwwcat-liftcom

MMH1103_SysRptCOKEindd 21 3911 907 AM

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

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MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

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they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

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To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 22: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

22 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern system report

VoIP or traditional voice Which solution is better Datria argues that because its solu-tion uses off-the-shelf phones that cost considerably less than traditional voice hardware and operates over a WiFi network it is a less expensive solution

Steve Banker director supply chain management for ARC Advisory Group (wwwarcwebcom) is impressed by Cokersquos implementation but is not sure that VoIP is right for everyone

ldquoThere were some unique char-acteristics to the Coke implementa-tionrdquo Banker says The most impor-tant of those was that Coke had made a commitment to use voice corporate wide and not just in the

DC In addition he says Coke had an experienced IT staff While the bottler did have to beef up their WiFi infrastructure and add a number of access points Banker says that it made sense for Coke

ldquoIf yoursquore standardizing on voice across your company therersquos a very good argument for this approach especially if you have an experi-enced IT staffrdquo Banker says ldquoAt the same time Irsquom not sure it makes sense for the warehouse that doesnrsquot have an infrastructure in place and wants to implement a simple and reliable solutionrdquo Or if a company has just one or two

facilities remember that CCR has been able to leverage its investment across 100 facilities to date

That said Banker points out that the traditional market is more dynamic than ever ldquoDespite new players and more competition I believe Vocollect is stronger than ever as is Lucas Systemsrdquo Banker says ldquoAt the same time wersquore see-ing solutions like the one from Aldata in France that uses a Nuance speech engine and doesnrsquot lock you into using proprietary hardwarerdquo

In short for the company imple-menting voice there are more choices and solutions than ever before

At the last pick for an order the sys-tem will prompt the selector to go to a printer (10) where he will get a pal-let ticket or a pallet label The selector

speaks the last three digits of the pal-let ID number to confirm that he has the correct label After confirmation he will stretchwrap (11) and stage

the pallet for delivery (12)

If the order selec-tor wants to ask a specific question he will be presented with a menu of options If there is no material avail-able for picking at a slot location for instance the order selector can short the order by speak-ing a reason code If a selector is uncer-tain about the prod-uct to be picked he can ask for a product descriptionndashCCR has recorded a wave file for each brand and each product In addition a selector can ask the system for the largest quan-tity to be picked first to build the most sta-ble pallet

Once the order selector completes and verifies the pick the system repeats the process until the order is complete M

ERP server2

PBX server3

Voice applicationserver

Corporatedata center

1

Voice applicationserver

4

Routervoice XML

5

Printer10

Stretchwrapper

11Picking

area

9

Shippingarea12

LAN6

LAN6

VoiceXML

pages

VoiceXML

pagesWAN

7

Voiceheadset

8

VoiceXML

pages

Warehouse

Warehouses

LAN

Graphic by Daniel Guidera

MMH1103_SysRptCOKEindd 22 3911 907 AM

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

wwwchdistcommmh

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Prices listedaregoodthroughApril302011 MMH0311V1

7811200mdashPolyethyleneContainmentPallets$32500

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7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

8828532mdashSteelShelving withClear AkroDrawers

7189101mdashVERSADecktradePlatform Trucks$42100

$90800

4221901mdashPoly ColumnProtectors$20700

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$4580 $5520

5707800mdashStorage Locker$77400

5511500mdash60x3614000-Lb CapacityWorkbenches

$58990

5576523mdash5-shelfFire-ResistantStorage Cabinets

$309900

$1972007122800mdashManual-levelingSkidLifttradePallet Positioners

7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

7807328mdash1-Tier Locker$45500

4162227mdash36x18x72All-WeldedCabinets

4290609mdashExtra-LargeUltra Poly Bins$2850

42710mdashUltra Poly Bins

$126And up

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

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supply-chain solutions evolved over nine

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

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High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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Roll-Out Shelving bull Seismic Base Isolation

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

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cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

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copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 23: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

SINCE 1937

YOUR BUSINESS AND INDUSTRIAL EQUIPMENT SPECIALISTS

Shop Onlineamp Save

wwwchdistcommmh

11OFF

chdistcommmhFor details

Prices listedaregoodthroughApril302011 MMH0311V1

7811200mdashPolyethyleneContainmentPallets$32500

$13500

4118821mdashE-Z StorregAll-SteelOrganizers$36200

7081800mdashSpartanConvertibleHand Trucks$25100

4354027mdashUltraSoftDiamond-Plate Mats (2x3rsquo)

5358300mdashWeldSaferegMats (24x36)

7179000mdash221frasl2x313frasl8x601frasl2 HY-DRAULIC PEDA-LIFTPlatform-LiftHand Trucks

$109700

8828532mdashSteelShelving withClear AkroDrawers

7189101mdashVERSADecktradePlatform Trucks$42100

$90800

4221901mdashPoly ColumnProtectors$20700

4339600mdashCanMeleontradeIndoorOutdoorReceptacles

$4580 $5520

5707800mdashStorage Locker$77400

5511500mdash60x3614000-Lb CapacityWorkbenches

$58990

5576523mdash5-shelfFire-ResistantStorage Cabinets

$309900

$1972007122800mdashManual-levelingSkidLifttradePallet Positioners

7128100mdashLift 2Ktrade28x48 LiftTables

3964800mdashRecordStorage(69x15x84)$20100

7807328mdash1-Tier Locker$45500

4162227mdash36x18x72All-WeldedCabinets

4290609mdashExtra-LargeUltra Poly Bins$2850

42710mdashUltra Poly Bins

$126And up

$31900

7820718mdash12x12x601-Tier Lockers$32400

SALE

$119300

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MMH 0211Layout 1 21611 930 AM Page 1

MMH0311_adsindd 23 3911 904 AM

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

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30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

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helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 24: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

24 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Materials handling industry

experts report that 2010 was

better than expected and believe

that wersquore painting a brighter

picture for 2011

MMH1103_IndustryOutlookindd 24 3911 312 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

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Toll Free 866-479-7225

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Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

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The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

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March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 25: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom Modern Materials Handling M a r c h 2 0 1 1 25

After three years of hoping for economic bright spots to report in Modernrsquos annual Industry Outlook it looks like therersquos

finally more bloom than gloom While wersquore not back to pre-recession numbers yet materials han-dling industry experts across the board are report-ing growth in 2010 and expect it to continue in 2011 and 2012

That positive feedback tracks with the nationrsquos overall economic news In the first quarter of 2010 the US Gross Domestic Product (GDP) grew 37 In the second quarter it grew 17 and in the third it was up 26 With the GDP expected to rise over the next two years it appears the upward trend will continue For instance Jan Hatzius chief US economist for Goldman Sachs is predicting the United States can expect substantial accel-eration in real GDP growth over the next two years to a 4 pace by early to mid 2012

In the materials handling sector increased demand is apparent as the economy shifts from recession to recov-ery according to Hal Vandiver executive consultant for the Material Handling Industry of America (MHIA wwwmhiaorg) Filling supply chain pipe-lines re-establishing invento-ries and responding to pent up demand has been the principal impetus for improvement over the last few quarters in manu-facturing warehousing and dis-tribution he says

Modernrsquos industry survey results Modern readers are also feeling positive according to our recent 2011 State of the Industry study The annual survey which was e-mailed to Modern readers in January tracks mar-ket changes during the last year and is designed to clarify the current state trends and practices in manufacturing ware-housing and distribution

This yearrsquos survey yielded 463 qualified respondents As a whole respondents were more optimistic about the future than they were a year ago More than half (51) report they are mov-ing forward with needed and planned purchases and invest-ments About half (47) expect 2011 spending to be on par with 2010 and 36 expect that it will increase A modest 27 say they are limiting purchases to things that are critical to sus-taining ongoing business and 22 say that current economic

conditions are not impact-ing their materials handling spending

The outlook for 2012 is even more encouraging Only 8 of respondents expect next yearrsquos spending to be less than this year while 45 expect to increase spend-ing more than 5 And over the course of the next 18 months one out of four com-panies expect to spend more than $250000 on materials handling solutions

MHIA overviewThe numbers back up the feeling of optimism Comparing MHIArsquos expec-tations for last year to actual results MHIA CEO John

By lorie King rogers Associate Editor

s p e c i a l r e p o r t

2011 Industry Outlook Optimism shines

We are taking a wait and see approach and makingonly those purchases and investments that are criticalto sustaining our ongoing business

We are moving slowly and proceeding cautiously withour purchase and investment decisions

The economy is having little or no impact onour materials handling spending

How is the present state of the economyaffecting your spending on materialshandling equipment technologiesservices and solutions

Source Peerless Media Research Group

27

48

18

13

51

22

2010

2011

WEBCAST March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 25 3911 312 PM

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

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supply-chain solutions evolved over nine

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uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

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MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 26: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

26 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

modern special report

Nofsinger says ldquoIn some cases we came back quicker than expectedrdquo

For example Nofsinger expected shipments to grow by 1 to 2 in 2010 when in fact they grew about 7 Exports which he expected to climb from $37 billion to $38 billion actually increased about 25 up to $43 billion Imports grew by 11 which was also higher than expected

Looking forward into 2011 the Material Handling Equipment Manufacturing (MHEM) forecast conducted by MHIA supports Nofsingerrsquos expectations for an 11 to 12 increase across the board for orders shipments imports and exports

Whatrsquos more in a survey of industry leadership Nofsinger says all signs are pointing toward underlying optimism end-to-end ldquoNumbers aside therersquos confidencerdquo Nofsinger says ldquoWhat everyone is talking about supports low double-digit growthrdquo

Nofsinger also believes there will be targeted investments with dispropor-tionate shares going toward IT and solu-tions that better integrate processes ldquoCompanies will pick their battles carefully and choose wisely when they decide to release moneyrdquo he says

On the global materials handling front Asia and developing countries are doing somewhat better Europe has stabilized and Germany has come back a little stronger than predicted As far as improvement in the develop-ing world Nofsinger says itrsquos growing but hersquos not predicting double-digit growth

Lift trucks picking upHere at home the lift truck market experienced double-digit growth in 2010 and is picking up faster than expected in 2011 Last year Jeff Rufener president of the Industrial Truck Association (ITA wwwindtrkorg) and vice president of marketing for Mitsubishi Caterpillar Forklift America said 2010 was going to be a recovery year and was looking for the lift truck industry to grow by about 7

The good news is his number was off Rufener reports the North American lift truck market outpaced last yearrsquos 7 prediction substantially and actually grew by 39 Breaking it down electric lift truck sales grew by 32 and internal combustion (IC) sales grew by 52 These numbers are especially important because Rufener said that single-digit growth would not provide a lot of relief from the financial strain that the industry was under at that time

More good news Rufener was concerned that the tight credit market would be an issue in 2010 Credit was no more of an issue in the lift truck business than in any other business he says and doesnrsquot expect it to be a problem this year either

What Rufener does expect is more growth ldquoI expect to see a little more growth in IC as the economy continues to recoverrdquo he says ldquoI donrsquot expect the electric segment of the market which is currently at 63 to ever fall below 60 because wersquore dealing with more profound issues like the cost of fossil fuel government regulation and more concern

Staying about the same(plusmn 5)47

Increasing36

Decreasing17

How does your companyrsquosspending on materialshandling solutions in 2011compare with 2010

And by what percentage

656-15

1916-25

16Greaterthan 25

Average increase 17Median increase 12

446-15

1216-25

44Down 25or more

Average decrease 24Median decrease 20

Source Peerless Media Research Group

New equipmentequipment upgrades

Information technology hardwaresoftware

Staffinglabor

Maintenance services

Enterprise applications (ERP CRM WMS etc)

Outsourcing3PL services

Outside services (3PLs)

Other

68

47

37

25

12

9

13

5

In which areas will you be investingover the next 18 months

Source Peerless Media Research Group

Webcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 26 3911 312 PM

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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Carriers put strength just where you need it

helping you cut shipping costs while protecting

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

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Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

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copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 27: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

modern special report

about environment These issues are here to stay and the impact they have on the market is causing the lasting shift wersquore seeingrdquo

That said Rufener reports that ITA members are looking for overall lift truck industry growth of 10 over 2010 and another 10 for 2012

Automatic identification and data captureThe automatic identification and data capture (AIDC) sector is also on the rise Tom Wimmer director of auto ID and transaction automation practice at Venture Development Corp (VDC wwwvdccorpcom) reported last year that AIDC took a hit when then economy declined but he still believed in near-term growth opportu-nities in 2010 Was he right

ldquoWhat a difference a year makesrdquo says Wimmer ldquoMany of the bar code and RFID suppliers we track are rebounding faster than expected We talked to suppli-ers in first half of 2010 and saw unprec-edented growth that exceeded our expec-tations Suppliers got a nice bump in first half of 2010 and it continued throughout

the yearrdquoGrowth which

was in the mid teens could be attributed in part to two factors ldquoSuppliers are restock-ing depleted inventory and projects that were put on hold in 2009 were green-lighted againrdquo Wimmer says

Specifically on the printing side of AIDC technology recovery was preva-lent across the board Mobile printing was the fastest growing segment and con-sumables such as drums toner and receipts grew 6 last year Wimmer calls consumables ldquoa steady product that

doesnrsquot fluctuate dramaticallyrdquo and anticipates another year of 6 growth

The RFID segment grew throughout recession and is expected to continue that growth moving forward Wimmer says he has data suggesting that bar code and RFID users are moving beyond their pilot phases and increas-ing budget allocations for 2011

The trend in multi-modal data cap-turemdashcombining bar code RFID and voice technologies to provide benefits throughout the entire supply chainmdashis also expected to remain on a growth course through 2011 and beyond

Overall Wimmer anticipates a ldquonice lift in 2011 with a return to an historic growth rate of 4 to 7 from most of technologies including RFID scanning and mobile printingrdquo

Software market not as softIn the supply chain management soft-ware arena which includes network design and supply chain planning (SCP) warehouse management sys-tems (WMS) manufacturing execu-tion systems (MES) and transportation

Less than $25000

$25000-$49999

$50000-$99999

$100000-$249999

$250000-$499999

$500000-$999999

$1 million-$249 million

$25 million or more

25

18

13

19

9

4

5

7

Over the next 18 months approximately how much do you expect to spend on materials handling equipment and information systems solutions

Averageanticipated spending$451000

Mediananticipated spending$77000

Source Peerless Media Research Group

Innovative Warehouse

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_IndustryOutlookindd 27 3911 314 PM

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

ABFreg is a global provider of customizable

supply-chain solutions evolved over nine

decades Through relentless and

uncompromising pursuit of qualityABF

creates value for clients looking to

maximize logistical performance

Are you ready to take control

Call 877-ABF-0000 or visit abfcom

You need more than competence to sustain

long-term success You need innovation

and a resource-rich infrastructure

MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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DONrsquoT COST-THEY PAY

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L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

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Business staff

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To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 28: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

28 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

management systems (TMS) expectations were for the mar-ket to rise up from a lower than expected low in 2010

Last year Steve Banker service director of supply chain management at ARC Advisory Group (wwwarcwebcom) predicted that the 2010 software market would gradually rebound and spending would increase ldquoIf the market could grow by 1 the suppliers would be thrilledrdquo he said

Well suppliers should be thrilled Banker says the indus-try did better than the 1 he hoped for By the time results are in from ARCrsquos annual study Banker anticipates the pre-liminary numbers will be good including a 6 increase in TMS In addition Banker says ldquoWMS revenue numbers

are clearly growing and I expect the market will grow at a better than inflation raterdquo

Each sector is growing at its own pace Banker says but overall the supply chain management software market is up more than 45 and he expects this yearrsquos growth to be consis-tent with the rate of inflation or a couple points higher

CEMA moves forwardThe Conveyor Equipment Manufacturers Association (CEMA wwwcemanetorg) is also waiting for its 2010 year-end numbers to be finalized In the meantime however CEMA executive vice president Bob Reinfried reports that last yearrsquos prediction was off ldquoWe were conservative for good reason but 2010 is turning out to be a much better year for the North American conveyor market than forecastedrdquo he says

Using information from CEMArsquos Novemberrsquos report after 11 months actual shipments were already up 44 over last year ldquoIf December is consistent with the last two months I would project a 10 gain in shipments for 2010rdquo Reinfried says (Details on the December report can be found on page 3)

The increase in new orders was even more significant Through 11 months new orders for 2010 were up 129 over 2009 Once again Reinfried is conservative with his forecast With the information currently available his pro-jection for the North American conveyor industry is onward and upward ldquoI have every reason to believe this trend will continue into 2011rdquo he says M

4278

4874

3251

3546

2848

1522

1822

2619

127

238

Which of the following environmentallysustainable initiatives have beenimplemented in your facility and which will you be evaluating or making additional investments in over the next 12 months

Use

Will evaluate overthe next 12 months

Recycling

Lighting fixtures andor controls

Fans to circulate cool or warm air

Packaging andor packing materials

Reusable shipping containers

Water run-off controls

Metal andor plastic pallets

Upgraded insulation

LEED certification for new buildings

Solar panels

Source Peerless Media Research Group

IT solutions

75

25

Outside services

58

42

Systems equipment

66

34

For each of the following will yoube selecting a new supplier or usingan existing one

Use existing supplier New supplier

Source Peerless Media Research Group

modern special reportWebcast March 31 bull mmhcom2011outlook

MMH1103_IndustryOutlookindd 28 3911 312 PM

Take Control with Innovative Solutions

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Are you ready to take control

Call 877-ABF-0000 or visit abfcom

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MMH0311_adsindd 29 3911 904 AM

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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DONrsquoT COST-THEY PAY

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infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

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Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

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charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

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aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 29: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

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30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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Carriers are stiffer more slip resistant and

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 30: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

30 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

By Bob trebilcock Executive Editor

The mobile supply chain

is on the

Mobility is the hottest

marketing trend in the

supply chain Modern

looks behind the hype

to see whatrsquos changing

in the mobile supply

chain

the big pictureWhere Business Meets Materials Handling

everyone is going mobile As consumers wersquore snapping up smart phones downloading apps uploading photos tex-ting and tweeting Thanks to mobility wersquore never more than a Wi-Fi hot spot or cell tower away from the informa-tion thatrsquos most important to us

It should come as no surprise that providers of supply chain technologies want to capitalize on the mobility craze in our business lives They are certainly talking the mobility talk But are they walking the walk

To find out we talked to solution providers to learn just what mobility means today They represent mobile computing and voice recognition technologies supply chain software providers and several providers of automated materials handling solutions

Herersquos what we learnedSure therersquos some hype but therersquos also some evidence that mobility is top of mind for materials handling and supply chain professionals even if we are all still trying to figure out where these tools fit in our business lives

For instance the smart phone craze appears to be getting traction at the man-agement level according to ldquoMobile Technologies Used in SCM Todayrdquo a study co-authored by Adrian Gonzalez and Steve Banker analysts with ARC Advisory Group Smart phones were cited by 69 of the 60 supply chain executives who responded as mobile technologies they were using in their daily operations 22 said they were using their phones to scan bar codes and another 22 said they were using the devices to take pictures of receipts at the dock ldquoWe were surprised by the large number of smart phone usersrdquo says Banker

Now before you hand out iPhones to all your floor associates Banker notes that ARC did not talk to floor-level associates and that the warehouse is probably the last place that consumer mobile technologies will show up Thatrsquos because the warehouse was ahead of the rest of the enterprise when it came to the adoption of mobile tech-nologies like RF bar code scanning voice recognition and RFID Businesses may be

MMH1103_BigPictureBusMeetsMHindd 30 3911 148 PM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

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High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

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Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

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Big Ass Fans for Big Ass Fans

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spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

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The intelligent dynamic storage lift system for high density storage in a compact footprint

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 31: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom Modern Materials Handling M a r c h 2 0 1 1 31

willing to support managers who want to use their smart phones to scan a bar code But they arenrsquot about to chuck proven technologies and processes just because something glitzier has come along

In fact Banker believes supply chain managers probably came up with the idea of using their phones to snap photos of damaged goods or scan the occasional bar code because they realize they had the tools to do so on their hip not because the IT department came up with a new business process In that sense they may be ahead of the business in the adoption of new mobile technologies

At the same time Banker also says that mobile technologies are expanding the pool of mobile workers and extend-ing the reach of supply chain technolo-gies like warehouse management sys-

tems both inside and outside the four walls of the warehouse ldquoCompanies like Intermec and Motorola tell us that how customers are using mobility how that is rippling back through the supply chain and how we think about fulfillment is beginning to changerdquo says Banker

What does mobility mean today If thatrsquos true what does mobility in the supply chain mean today In some respects it means what it has always meant Providing tools to deliver infor-mation to the worker at the place where the work will be performed rather than requiring the mobile worker to take the work to the information

Those tools are continually being refined with the introduction of prod-ucts like mobile powered carts that

can integrate a variety of tools includ-ing a computer printer scanner and scale in one powered unit that can go anywhere in the facility regardless of whether therersquos a power outlet ldquoWe have a customer using a number of our units on their shipping and receiv-ing docksrdquo says John OrsquoKelly president of Newcastle Systems ldquoThey can roll a cart with a computer scanner and printer right up to a skid and receive all of the items on that pallet without tak-ing a packing slip into an officerdquo

A major driver OrsquoKelly says is the push to wring every ounce of efficiency out of existing processes ldquoNumerous customers have told us they have march-ing orders to improve what theyrsquore already doing before they even think of hiring additional personnelrdquo says

move

MMH1103_BigPictureBusMeetsMHindd 31 3911 148 PM

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

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The intelligent dynamic storage lift system for high density storage in a compact footprint

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 32: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

OrsquoKelly ldquoWhen you hear that story two or three times it registersrdquo

The dynamics of mobility are evolv-ing according to Sheldon Safir director of global product marketing for Motorola Solutions

Mobility is pervasive Like consumers accessing Facebook from everywhere there is no place in workplace anymore ldquoWork takes place wherever you need to berdquo says Safir ldquoAlmost every worker has some sense of mobility associ-ated with their jobrdquo

Devices are evolving Mobile computing was once a one-size-fits all deal Today a range of task-appropriate devices are coming to market

RFID is moving from promise to reality As item-level tracking becomes more prevalent we are moving to a real-time view of inventory across the supply chain

Better labor manage-ment is possible As mobile technology becomes more pervasive managers are able to re-assign tasks to workers in real time to drive more productivity

Better management is possible The introduction of consumer devices into the supply chain is in the early stages but as it evolves we will be able to extend supply chain information not just to truckers field techs and product managers but also to C-level executives

Last letrsquos not forget that a genera-tional shift is already happening in the workforce ldquoA new generation that has grown up with technology is coming into the enterpriserdquo says Safir ldquoOur expecta-tion is that every associate in the enter-prise will have some kind of appropriate mobile device paired with their jobrdquo

That of course is the dream of every solution provider What follows is a look at how that concept is being rolled out in the most common areas

Mobile computing As the name suggests mobility in the supply chain got its start with mobile

computing In that facet of the supply chain we continue to see improve-ments on existing devices as well as evolutionary change says Doug Brown business development director for LXE Those changes are being driven by the consumer world ldquoItrsquos not practical for someone to carry a laptop down on the shop floorrdquo says Brown ldquoBut people want connectivity and theyrsquore asking

why they canrsquot use the devices they use in their personal livesrdquo

LXE is introducing a new rugge-dized tablet that measures 8 inches by 8 inchesmdashabout the same size as a net-book but without a lidmdashit is less than 1-inch thick and runs Windows 7 It has a touch-screen a functional key-board and a camera A user can add a 2D bar code scanner and a headset for a voice application ldquoIt is bigger than a cell phonerdquo says Brown ldquoBut a supervisor could easily take it down on the floor and have access to the full warehouse man-agement system (WMS) capabilities on his desktop at the point of attackrdquo

Intermec is focusing on the challenge of connectivity as users move in and out of the physical four walls of the enter-prise ldquoWe are beginning to expand the definition of who is a mobile workerrdquo says Larry Klimcyk vice president of Intermecrsquos Global Solutions Unit ldquoIt is no longer just Wi-Fi inside the four walls of

a distribution centerrdquo Intermecrsquos solution is a communication layer that manages mobile connections whether they are a warehouse worker using Wi-Fi a worker in the yard on a wide area network (WAN) or someone in the field communicating over a cellular network

Voice recognition Intermecrsquos intention to acquire

Vocollect illustrates how voice is moving from a stand-alone solution to an integrated approach to order fulfillment ldquoVoice is coming of age to the point that it is now con-sidered in the design of the warehouserdquo says Joe Pajer Vocollectrsquos CEO

It is changing in other ways as well Voice was once only available on dedicated hardware from voice solution providers Today voice solu-tions can be accessed on a variety of devices and from a variety of providers It is also working in multi-modal situa-tions with bar code scanning

and data entryldquoAt the end of the day a smart

phone a ruggedized mobile device and a PDA are interchangeablerdquo says Scott Yetter president and CEO of Voxware ldquoRegardless of the method of data col-lection itrsquos all just data to the systemrdquo For that reason Yetter expects voice to eventually expand outside the ware-house to applications such as delivery confirmation ldquoBusiness requirements and not hardware should be determining the optimal way to collect informationrdquo Yetter says ldquoThatrsquos part of the whole market maturationrdquo

As mobile technologies converge a concept taking shape is the distinction between the mobile worker the mobile application and mobile content In the early stages of mobility technology was focused on enabling a mobile worker by making applications available wherever the worker went The next evolution is the idea of mobile contentmdashthat is the

32 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

in todayrsquos warehouses and factories almost every worker has some sense of mobility associated with their job

the big pictureThe State of Mobility

MMH1103_BigPictureBusMeetsMHindd 32 3911 148 PM

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

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Packaging offer you innovative options

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Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

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High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

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including IP networking and the ability to tie into existing

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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The intelligent dynamic storage lift system for high density storage in a compact footprint

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 33: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

ability to collect and deliver the same data in multiple ways ldquoTherersquos an ad that shows a guy taking a television off the wall and putting it in his pocketrdquo says Chris Sweeney vice president of sales and marketing for Lucas Systems ldquoThe idea is that the content is mobile and can be delivered in a variety of ways depend-ing on where the worker is locatedrdquo

In the context of a factory or ware-house the goal is to push out information traditionally associated with a PC or lap-top as mobile content on a voice applica-tion Instead of just enabling the mobile worker the technology is moving toward enabling the mobile management team ldquoThe last thing you want is a supervisor stuck behind a deskrdquo says Sweeney ldquoIf you have 12 waves on the floor and two are falling behind schedule based on their progress therersquos no reason you canrsquot send a voice alert to a supervisor that a specific wave or even specific employees have fallen behind or that a supervisor couldnrsquot call in a short to the WMSrdquo

Supply chain software and automated materials handling No one is talking about delivering a complete enterprise resource planning (ERP) or WMS to a smart phone mdashat least not yet mdashbut software providers

are beginning to look at their suite of applications and ask What slices of functionality can we move from the desktop to a mobile device like a smart phone They are developing the abil-ity to go outside of the warehouse with warehouse information and provide the ability to react to that information make a decision and then execute a solution

SAP for instance is focused on cre-ating applications for reporting and deci-sion support These apps combine event management and alerts that something has gone awry with functionality that allows someone to address an issue ldquoInstead of just sending an alert to a pager that a dock door didnrsquot open I can provide the functionality to reschedule a truck to another dock doorrdquo says Karen Peterson vice president of supply chain execution solution management for SAP ldquoAnd I can do that whether Irsquom in the warehouse at home in the middle of the night or down the street at lunchrdquo

The leading WMS providers are make similar strides

bull Manhattan Associates is focusing on workers who may have an inventory management function outside of the reli-able RF infrastructure within the ware-house That may be a worker receiving

Supervisors and managers are now using mobile technologies including their smart phones to read bar codes and take photos of damaged products

the big pictureThe State of Mobility

Innovative Automated

Solutions

wwwinterlakemecaluxcom1-(877)-MECALUX

MMH1103_BigPictureBusMeetsMHindd 33 3911 148 PM

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

shippable FirmaCorereg Lightweight

Carriers for economical one-way transport and

solid-stackable FirmaLoadreg Bulk Bag

Carriers designed

to ship clean and

easy Learn

how this truly

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of earth-friendly

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sustainability goals and shipping economics

Visit sonocotranspackcom or call

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Sonoco Transport Packaging

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See us atbooth 3563

The most able pallets going and comingmdash

Reusable Recyclable Remarkable

027_MMH1P4cindd 1 2111 101609 AMMMH0311_adsindd 35 3911 904 AM

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

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Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

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copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

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Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 34: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

34 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

inventory in a crossdock application for instance who loses connectivity when he steps into a trailer but still needs to scan bar codes to receive merchandise ldquoWe have an application that continues to capture information while the worker is offlinerdquo says Scott Fenwick senior director of product strategy ldquoWhen the worker steps out of the trailer and reconnects with the RF infrastructure we automatically update the system the same way your Blackberry updates e-mails and messagesrdquo

bull Like SAP RedPrairie is focused on delivering information but also allow-ing the user to take actions as well ldquoIf Irsquom cycle counting and find that therersquos only 10 items where there is supposed to be 12 Irsquoll be able to update the data-base there from my phonerdquo says John Spencer a technical consultant

bull HighJump has opened an app store to deliver functionality like a forklift

inspection check list to mobile phones or pads ldquoThe idea is to look at func-tionality that may be important to some users but not allrdquo says Chad Collins vice president of marketing and strat-egy ldquoInstead of including that func-tionality in the standard product the ones who want it can download it very quickly and turn it on The others donrsquot have to have it in their applicationrdquo

Leading automated materials han-dling providers are also delivering pieces of their warehouse control sys-tems to mobile devices

bull Intelligrated has put together an app that delivers alerts to maintenance personnel when a piece of equipment fails Whatrsquos new is the ability to access a video that shows how to swap out the failed part bring up schematics and drawings and even dial in to an electronic catalog to order a replace-ment part all from a mobile device

the big pictureThe State of Mobility

Companies interviewed for this article arC advisory group arcwebcom dematic dematicus HighJump software highjumpsoftwarecom intelligrated intelligratedcom intermec intermeccomlucas systems lucaswarecomlXe lxecom Manhattan associates manhcom Motorola solutions motorolasolutionscom newcastle systems newcastlesyscom redPrairie redprairiecom saP sapcom Vocollect vocollectcom Voxware voxwarecom

Similarly the warehouse control system can deliver reports to management-level phones allowing them to dial in and see whatrsquos going on in the system from wherever they are located

bull Dematic is also developing apps based on its warehouse control systems One example is an app that will pro-vide track and trace capabilities alerts and warehousing monitoring to smart phones ldquoWersquoll provide a map of the warehouse on the phone that you can zoom in and out ofrdquo says Mary Elliott manager of software development ldquoIf you need your rates for the day or need to know whatrsquos going on in a particular area of the warehouse yoursquoll be able to do thatrdquo At the same time the system will allow a supervisor to take corrective action such as moving resources from one picking area to another from the mobile device

ldquoComputing is ubiquitous nowrdquo says Elliott ldquoEveryone expects it to be available everywhere Our customers can order from Amazoncom on their phone They donrsquot understand why they canrsquot use our products from their phones Our industry has no choice but to change and go mobilerdquo M

MMH1103_BigPictureBusMeetsMHindd 34 3911 148 PM

Carrier products from Sonoco Transport

Packaging offer you innovative options

far beyond the limits of conventional pallets

Food-safeable FirmaMaxreg Plastic

Carriers are stiffer more slip resistant and

decabromine-free Ideal for closed-loop pools

they are 100 recycled 100 recyclable

High-stackable FirmaDeckreg Corrugated

Carriers put strength just where you need it

helping you cut shipping costs while protecting

your productrsquos integrity Fork-bangable

and PIMS-certifi able FirmaGuardreg

components stand up to everyday abuse to

make wood pallets MUCH stronger and safer

Your options go on and on with light-

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

salesmmhidlabelinccomToll-free 8005418506 x100wwwidlabelinccom

ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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DONrsquoT COST-THEY PAY

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Brian ceraolopublisher bceraoloehpubcom

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

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Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

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spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

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Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 35: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

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helping you cut shipping costs while protecting

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components stand up to everyday abuse to

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By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

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Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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Trust RIDG-U-RAK with your next projectbull One of the largest rack

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MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 36: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

By Lorie King Rogers Associate Editor

utomated storage and retrieval systems known as ASRS have been around since the 1960s Put simply they are computer-controlled systems that put away store and retrieve product in warehouses distribution centers

and manufacturing facilities ldquoThe first systems were built to handle large loadsrdquo explains Ralph

Mills executive director of sales Daifuku America (wwwdaifukucom) ldquoFrom there pallet loads developed into mini-loads and most recently ASRS is being used for replenishment and to sequence itemsrdquo

Over the years ASRS have evolved into smarter sophisticated mate-rials handling solutions that can handle smaller loads and strategically deliver product to the right place at the right time without manual labor

ASRS configurationLarge systems known as unit-load ASRS typically store and retrieve pallet loads Smaller systems mini-load ASRS handle product in totes trays or cartons

Automated storage and retrieval systems

can help an operation reduce labor increase

accuracy and throughput and have a green

impact on the environment

How ASRS works

A

modern Equipment 101 ASRSA primer for warehouseDC managers

36 M a r c h 2 0 1 1 ModeRn MAteRiALS HAndLing mmhcom

MMH1103_EquipAutoStorageindd 36 3911 1035 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 37: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom Modern Materials Handling M a r c h 2 0 1 1 37

asrs provide high throughput maximum space utilization and are able to handle loads in a wide range of climates including refrigerated and frozen storage

MMH1103_EquipAutoStorageindd 37 3911 1035 AM

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

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Holster YourSide Arm

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Brian ceraolopublisher bceraoloehpubcom

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sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

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Business staff

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Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

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Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

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Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 38: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

38 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Regardless of size most ASRS have the same basic configuration Two rows of metal rack face each other with a narrow aisle in between Down the center of the aisle is a raised metal rail A tall mast travels through the aisle along the rail When the mast reaches a designated storage location a carriage travels up or down the mast to the level of the location A load-handling mecha-nism mounted on the carriage then reaches into the storage location to put away or retrieve a load

The mast carriage and load-han-dling device collectively are known as a storage and retrieval machine (for short an SR machine or SRM) or a crane

Most ASRS use one SRM per aisle but sophisticated high-throughput sys-tems might assign multiple machines to one aisle Some low-throughput systems assign one machine to multiple aisles In these systems the SRM makes a turn at the end of its aisle or is moved from aisle to aisle by transfer cart

SRMs may have single or double masts With a single-mast machine the carriage is attached to the front of the mast With a double-mast machine the carriage rides between two masts pro-viding added stability in tall ASRS or

in systems that handle heavy loads

Unit-load ASRSUnit-load ASRS are designed to store large loads of 1000 pounds or more which are typ-ically stored on pallets Some specialized systems handle oversized loads like furniture and long rolls of carpet

While a unit-load ASRS can reach 100 feet a typi-cal system is less than 40 feet high A standard ASRS stores loads on rails designed specifically for automated systems This rack like drive-in rack stores loads on rails that run perpendic-ular to the aisles (Standard pallet rack stores loads on cross beams that run parallel to the aisles) ASRS rack can be configured single-deep double-deep or as deep-lane rack with several pallets and stored one behind the other

The load-handling mechanism for a unit-load ASRS is usually a tele-scoping device called a shuttle that reaches into the storage location slides under the pallet then pulls it onto the carriage

Less common turret-style SRMs that use a rotating fork are slower but can interface with standard pallet rack instead of special ASRS rack

A unit-load ASRS can providebull dense storage in a warehouse

Unit-load asrs automatically put away

and retrieve heavy loads of 1000 pounds or more that are stored on pallets or in

pallet-sized containers

ASRS manufacturers What they make

Company Web siteUnit-load

asrsMini-load

asrsHorizontal carousels

Vertical carousels VlMs

AFT asrsnet x xDaifuku daifukuamericacom x xDematic dematicus x xHanel Storage Systems hanelus x xInterlake Mecalux interlakemecaluxcom x x x x xKardexRemstar kardexremstarcom x x xKnapp Logistics amp Automation knappcom xLauyans and Co lauyanscom x x xMurata Machinery muratec-usacom x xSapient Automation getsapientcom x x xSchaefer Systems International ssi-schaeferus x x x xSencorpWhite sencorpwhitecom x x xSystem Logistics systemlogisticscom x x x x xTGW Systems tgwsystemscom x xviastore viastorecom x xWestfalia Technologies westfaliausacom x xWitron witroncom x x

modern Equipment 101 ASRSA primer for warehouseDC managers

merged with HK Systems in 2010

MMH1103_EquipAutoStorageindd 38 3911 1035 AM

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 39: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Modern Materials Logistics Management Supply Chain Management

bull Automation

bull Conveyors amp Sorters

bull Inventory amp Picking

bull Loading Dock Equipment

bull Mobile amp Wireless

bull Shipping Pallets

bull Storage Systems

bull Containers amp Totes

bull Energy amp Sustainability

bull Lift Truck amp Fork Lift

bull Handling amp Warehouse Ergonomics

bull Packaging

bull Software amp Technology

wwwmmhcomcriticaltopics

Critical Industry News at Your Fingertips

Critical Topic areas help you develop strategies and expand your knowledge Each topic provides you with the news information and resources you need mdash each day

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

MMH_CriticalTopics_Houseindd 1 81010 117 PMMMH1010_Adsindd 8 101210 1053 AMMMH0311_adsindd 39 3911 904 AM

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

the name to trust

Toll Free 866-479-7225

wwwridgurakcom

Selective Pallet Rack bull Drive-In bull Push Back bull Flow

bull Pick Modules bull Cantilever bull Stacker Cranes bull

Roll-Out Shelving bull Seismic Base Isolation

REG 5150

NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

manufacturers

bull Capacity in excess of 60000 tons per year

bull Project management and installation services

bull Full array of storage system solutions

bull Unparalleled innovation design and application experience

MMH1103_EquipAutoStorageindd 40 3911 1035 AM

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

Positive feedbackEvery time

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ID LABEL INC425 Park AvenueLake Villa Illinois 60046

Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

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Business staff

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please contact Jennifer Drevline

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Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 40: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

modern Equipment 101 ASRSA primer for warehouseDC managers

bull buffer storage for work-in-processbull a dynamic pick face for a case-picking

operation orbull parts sequencing for an assembly line

Mini-load ASRSSmall-scale ASRS that handle lighter loads usually less than 1000 pounds in containers such as trays totes or car-tons are known by a number of differ-ent names

Some suppliers use the term ldquomini-load ASRSrdquo to describe systems that handles loads between 100 and 1000 pounds and the term ldquomacro-load ASRSrdquo to describe those systems that handle loads of less than 100 pounds Others simply call all of them mini-load systems ldquoCase-handling machinerdquo and ldquotote stackerrdquo are other terms used to describe light duty ASRS

This article will refer to all less-than-unit-load systems as mini-load ASRS

In addition to having many names mini-load ASRS also take numerous forms Most are configured along the same principles as unit-load systems

but instead of using shuttles to pick up and retrieve loads they use one of a variety of load-handling devices Examples include extractors that grasp and pull handles on metal trays vacu-ums that attach to corrugated cases and robotic arms that grip plastic totes

A typical mini-load stands between 10 and 40 feet tall Mini-load ASRS have numerous applications some of which fall outside of the manufactur-ing and distribution industries For example government agencies and universities use them to store docu-ments and books Most mini-load ASRS however are used in factories and warehouses for small parts storage and order fulfillment

Benefits of ASRSIf your organization is considering an automated storage and retrieval system first determine which system is right for your handling needs ldquoToo often end users want to incorporate every lsquowhat-if rsquo scenario into their selection processrdquo says John Clark director of

This mini-load staging buffer uses computer-controlled shuttles equipped with a load transfer device The shuttles can deliver loads to a person who will pick items When the pick is complete the load is automatically returned to its storage location

For more than 65 years RIDG-U-RAK has been the innovative leader instorage rack design and productionWhether you need replacementbeams or a storage system covering30 acres of warehouse space RIDG-U-RAK is the name to trust

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Toll Free 866-479-7225

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Selective Pallet Rack bull Drive-In bull Push Back bull Flow

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NEWFull Line Selection Guide

Trust RIDG-U-RAK with your next projectbull One of the largest rack

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MMH1103_EquipAutoStorageindd 40 3911 1035 AM

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Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

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MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 41: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

1-800-950-5005ADS12411

Only Kenwood Gives You SoMany Ways to Save Moneyand Boost Efficiency

Two-way radios are proven for affordable durable and

versatile voice and data communications throughout your

facility Kenwood solutions range from the durable high

performance ProTalkreg portables to NEXEDGEreg designed to

meet present and future needs with digital technology

including IP networking and the ability to tie into existing

private or public communications assets

Visit us at ProMat 2011 Booth 4081 to meet with Kenwood

professionals to help assess your requirements and make

cost-effective recommendations They can even make sure

that you are ready for the 2013 FCC mandate for narrowband

radio operation

MMH0311_adsindd 41 3911 904 AM

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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Run and hold inventory programs

FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

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spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

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Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

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Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 42: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

42 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

marketing for TGW Systems (wwwtgwsystemscom) ldquoPick a system that addresses your sweet spotrdquo

To determine your sweet spot begin with ASRS application discussions that address rate and storage capacity says Charlie Zebell vice president of sup-ply chain solutions for System Logistics (wwwsystemlogisticscom) Then define the loads to be handled and ask questions about selectivity redundancy and build-ing constraints

Once in place ASRS can provide a number of benefits such as con-trolled access to valuable inventory increased accuracy and productivity and reduced labor costs and risk to workers For example these systems are a good option in freezers and other

While this Equipment Series 101 focuses on ASRS basics of fixed-aisle systems other storage technologies such as horizontal carousels vertical carousels and vertical lift modules (VLMs) are sometimes called auto-mated storage and retrieval systems

Carousels and VLMs can also deliver significant benefits to end users by bringing the product to the person and reducing operating expenses ldquoCarousels and VLMs can grow with your business but whatrsquos important to one user is different from anotherrdquo says Ed Romaine chief marketing officer for Sapient Automation (wwwgetsapientcom) ldquoWhen you calculate your ROI equation you should con-sider four critical factors space cost throughput and laborrdquo

Your calculations could lead to a fixed aisle ASRS or to one of the following

Horizontal carousels are a lot like the equipment used by a dry cleaner but instead of clothes hanging from the top rail wire carriers are sus-pended from the rail These carriers typically hold plastic bins containing small-sized products Often paired with pick-to-light and voice technol-

ogy picking systems horizontal carou-sels work well in a facility with limited height but can be stacked if ceiling heights allow vertical expansion

Vertical carousels are similar to a Ferris wheel This technology con-sists of shelves that rotate up and down inside a metal cabinet The shelves can hold metal trays or plastic bins of small parts When an opera-tor requests a part from its computer system the carousel rotates to deliver the correct shelf to an access win-dow at the proper ergonomic level Vertical carousels provide flexibility and work well in situations where the inventory changes but the product profile remains the same

Vertical lift modules are a combi-nation of vertical carousel and tradi-tional ASRS technology While the outside looks like a vertical carousel the inside stores trays located on both sides of a column An extrac-tor mechanism travels up and down the column retrieves the trays and delivers them to the operator at an ergonomic work counter VLMs are flexible can change with operationrsquos changing requirements and optimize space tray density

Carousels also deliver

Unit-load pallet conveyor is needed to transport large loads

from a unit-load asrs

harsh environments that can be haz-ardous to people

Advances in software and computer

technology have enabled the continu-ous improvement of ASRS and given end users competitive advantages but whatrsquos really driving these changes is the need to have an effective ldquoenginerdquo that can support goods-to-person order fulfillment explains Ken Ruehrdanz warehousing and distribution market manager for Dematic (wwwdematicus) ldquoWorkers are no longer wandering around the warehouse looking for prod-uct Instead they stay in one place and the machine retrieves the product and brings it to themrdquo

This turn of events has turned ASRS from an overhead expense into a solution that can positively impact an operationrsquos bottom line ldquoDistribution wasnrsquot consid-ered a profit centerrdquo says Sean OrsquoFarrell business development manager at Witron (wwwwitroncom) ldquoNow itrsquos a competitive edge that helps get product on the shelf faster in the correct order and lowers the cost per pickrdquo

ASRS can also lower operating expenses through enhanced cubilization which means storing product higher How high depends on a number of variables but a smaller building footprint means reduced cost and demand for lighting heating cooling and freezing the storage environment which also has a positive impact on our overall environment M

modern Equipment 101 ASRSA primer for warehouseDC managers

MMH1103_EquipAutoStorageindd 42 3911 1035 AM

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

NATIONAL INSTALLATION SERVICES The most comprehensive installation services in the industry With over 40 years of combined experience our installation team provides nationwide coverage that delivers great value guaranteed quality and on-time engineered solutions bull Customized installation solutions bull Data fi le manipulation bull Fully bonded and insured

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March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

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infoaignerindexcom

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L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

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Holster YourSide Arm

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or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

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sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

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Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 43: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

On an unprotected surface bacteria can double in number every 20 minutes Microbanreg antimicrobial technologies inhibit the growth of bacteria that can contaminate your food transport and processing equipment causing stains odors and degradation Microban technologies are not designed to protect against foodborne illness or replace normal cleaning practices Microban protection is engineered to work continuously between cleanings for an added level of protection that will keep your products cleaner for longer

Anything you can make we can keep cleanertrade

Changing the way you think about clean

The Microban portfolio of technologies includes products approved for direct food contact and with NSF Std 51 approval copy2011 All Rights Reserved MICROBAN is a registered trademark of Microban Products Company

To find out more about Microban antimicrobial protection visit wwwmicrobancomfoodhandling

MMH0311_adsindd 43 3911 904 AM

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

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MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

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spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

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Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

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copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

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The intelligent dynamic storage lift system for high density storage in a compact footprint

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 44: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Warehouse Labels amp SignsWAREHOUSE SIGNS Solutions for all your bulk storage identifi cation needs for indoor or outdoor applications bull Long-range retro refl ective bull Flat bent or two-sided Z shaped sign fabrication bull Dock door bull Aisle bull BullsEye oval fl oor plates

RACK LABELS Durable polyester rack labels help insure consistent bin location year after year We produce and install over 5 million rack labels annually bull Horizontal and vertical upright bull Magnetic bull Protective laminates standard bull Special adhesives mdash cover up and freezer applications bull Color coding for tier identifi cation and directional arrow graphic images

PREPRINTED LPN LABELS Preprinted barcode pallet id labels save signifi cant time and money compared to print-on-demand thermal transfer bull Run and hold inventory programs bull Same day shipping bull 2-D and linear barcodes bull Corner-wrap

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FREE white paper on the benefi ts of preprinted labels VS print-on-demandCALL TODAY

FREE samples available Channel partner inquiries welcome

mmh201012_IDlabelindd 1 11172010 83242 AM

MMH0311_adsindd 44 3911 904 AM

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

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Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

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cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

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Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

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MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 45: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

March 2011 Modern Materials handling 45S

warehouSeS amp DISTrIBuTIoN CeNTerS

For every company adding voice to its operation for the first time Bob Heaney senior research analyst for research firm Aberdeen Group reports that there

are four to five companies already using voice for picking that are planning to roll it out to new areas such as replen-ishment and putaway

For voice providers therersquos even bet-ter news David Krebs senior director specializing in mobile and wireless for VDC Research sees the voice market performing well as we roll into 2011 Though he attributes much of this

This Canadian retailer tossed its paper-based pick systems and turned to voice to help process SKus of varying shapes and sizesmdashthe result is improved productivity and 9997 order accuracy

By MaIDa NapolITaNo ContriButing editor

growth to ldquopent-up demand among existing users for upgrades and expan-sionsrdquo he sees an increasing share of the market driven by opportunities in emerging and underpenetrated regional and country markets specifically in Europe and Asia

This expansion into other workflows and penetration into global markets is further testament of voice technologyrsquos positive impact on warehouse operations and overall accuracy improvements Because of its hands-and-eyes-free oper-ation Krebs points out that picking pro-ductivity with voice typically improves by 20 or more ldquoOrder picking accu-

racy of well-designed and deployed voice solutions typically reaches if not exceeds one error per thousand picks (999 accuracy) says Krebsrdquo

Itrsquos this quest for increased order picking accuracy that drove Canadian retailer London Drugs from error-prone picking with paper to near-per-fect picking with voice

No orDINary pharMaCyLondon Drugs started out in 1945 as a 1000-square-foot community drug-store on Main Street in Vancouver Today this privately owned Cana-dian company operates more than 70 retail stores across Western Canada And while the pharmacy remains at the heart of its business its stores offer anything and everything from high-end audiovisual products furni-ture and cosmetics to computers and pharmaceuticals

Though having such an extensive product offering may be a panacea to marketing processing 30000 SKUs of varying shapes and sizes could quickly become a logistical nightmare How-

london Drugs cures its picking ills

aDopTINg voICe TeChNology

Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections then physically deliver the labels to pickers Now pickers can immediately start picking

a speCial suppleMent to

MMH1103WDC_VoiceSuppindd 45 3911 1037 AM

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

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  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 46: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

46S modern materials handling march 2011

Voice Technology

ever London Drugs has clearly stood up to the challenge

Order fulfillment happens very quickly Stores have a cutoff time of 7 pm to submit their orders Eleven hours later these orders are ready to be shipped from the companyrsquos two distribution facil-ities a state-of-the-art 500000-square-foot Distribution Service Centre (DSC) located in Richmond British Columbia and a satellite bulk storage facility just 20 minutes away

Lothar Breuers the DSCrsquos manager for systems and training explains how they get things done ldquoAlthough the wide range of sizes of products does create some challenges for us we like to use different technologies to help us over-come these issuesrdquo In the piece-pick area where 50 of the DSCrsquos orders are picked pick-to-light technology is used to pick fast-movers while horizontal car-ousel systems equipped with light trees and lighted ldquopick-tordquo tables are used to pick slower movers These sophisticated pick-to-light systems allowed the DSC to pick their fastest- and slower-moving items quickly and accurately However it was the picking of medium movers and over-sized non-conveyable pick-to-pallet items that was still a very manual error-prone pick-with-paper operation Management knew changes needed to be made

STill picking wiTh paperIn 2005 the retailer decided to focus its efforts on improving the accuracy of its paper-based order picking operations for about 5000 piece-pick locations Although picking with paper allowed the company to achieve impressive produc-tivity metrics management recognized room for improvement on other critical service levelsmdashspecifically accuracy

Their error rate with paper was about one in every 300 picks (a 996 accuracy rating) but they knew they could do better ldquoPick errors can be costly to correctrdquo explains Breuers ldquobut more importantly they can turn into real customer service issues at our retail storesrdquo In addition the mate-rial costs for peel-and-stick labels had been steadily increasingmdashexceeding $200000 Canadian dollars annually

Why not use more pick-to-light Though accurate management felt that pick-to-light systems were fixed with relatively high start-up costs Voice systems on the other hand would be less expensive and completely portable Its hands-free eyes-free nature allows pickers to handle heavy oversized car-tons with both hands and in the end it was voice that presented London Drugs with a distinct advantage

purSuing VoiceThat same year Breuers and his team brought in a demo system from two dif-ferent vendors to perform a proof of concept review of the system and to also compare features between two voice pro-viders Each vendorrsquos system was tested for three weeks and the team compiled productivity and accuracy statistics and built an ROI case for voice

From the outset it was clear that the characteristics of the facility played a role in making the decision ldquoWe have a fairly noisy working envi-ronment because we have a lot of con-veyors running through our facilityrdquo says Breuers ldquoWe found Vocollectrsquos noise-canceling technology on its headset was better able to handle our background noiserdquo

The team concluded that Vocollectrsquos VoiceLink also had more functionality

when it came to managing users and equipment ldquoIn our operation visibility is the name of the gamerdquo adds Breuers ldquoWe canrsquot have pick sections falling behind and holding up store deliveriesrdquo With VoiceLink Breuers found that supervisors can monitor how work is progressing and move pickers around to areas that are falling behind to make sure that each section keeps up with shipment schedules

geTTing a Team TogeTherWith managementrsquos approval London Drugs kicked off its implementation of voice technology in February 2007 The core implementation team consisted of Breuers Brian Best Londonrsquos direc-tor of distribution Dave Clark a DSC trainer Mark Murphy a technical spe-cialist and Les Fraser the companyrsquos senior applications engineer This core team also invited a group of pickers to help smooth out the processes

Vocollect suggested that the team work with one of its value-added resell-ers a Washington-based company called Vitech Business Group that had exten-sive expertise in warehousing operations ldquoVitech really understood our operation and individual workflows and was able to configure the software to match our par-ticular operational needsrdquo recalls Breuers ldquoOne thing I never like is an integrator that wants me to change my operation to fit the way the software worksrdquo

One of Vitechrsquos principals Richard Stewart says that the knowledge trans-fer was the key to the collaboration ldquoYou can gauge the success of a project if at the end the customer knows our technology as well as we domdashand we know their operation as well as they dordquo

gearing up for VoiceWith a team in place the next step was to ensure that the proper infrastructure was in place to fully support voice tech-nology RF networks were upgraded and wireless coverage verified in both facili-ties Interfaces were developed to con-nect voice to the companyrsquos homegrown AS400-based warehouse management system (WMS) Check digit labels were applied to pick locations while work-flows were reviewed to ensure that the software could be configured to match each specific activity

The company purchased more than

London Drugsrsquo implementation timeline

Source Vitech Business Group

Collaborate todefine a solutionthat addressesLondon Drugrsquosspecific businessneeds

Define

Week 1-2

Adapt andprepare thatenvironmenttechnologyand software

Adapt

Week 3-6

Train testvalidate anddeploy thesolution

Perform

Week 7-9

Refinethe solutionmaximizingthe technologyinvestment

Refine

Week 10

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 46 3911 1037 AM

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

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MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 47: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

DehncoQuarterDigialindd 1 52110 111421 AM

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 48: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

48S modern materials handling march 2011

Voice Technology

60 Talkman T5 series terminals and enough SRX wireless headsets for 250 pickers over three shifts Pickers also had the option of a wired headset in case they preferred a lighter weight and fit In all the hard cost of the complete system including associated servers and hardware remained in the six-figure range not including internal software development and training costs

ldquoAs with any new technology there will always be some resistance to changerdquo says Stewart ldquoAnything that you can do to break down the barriers to that technology is going to make your lsquogo-liversquo that much betterrdquo

In May 2007 the voice-picking sys-tem went live in the DSCrsquos pick-to-pallet section ldquoWe always measure the success of each lsquogo-liversquo event by how little help they need from us their sys-tems integratorrdquo says Stewart ldquoWe had scheduled to be there an entire week but after the second day we didnrsquot need to go backrdquo

How LondonrsquoS Voice workSDuring each shift the WMS sends pick data in real time to the voice system Prior to voice picking pickers used to have to wait for the Data Centre to print and manually split thousands of labels into the various pick sections

then physically deliver the labels to pickers Now pickers can immediately start picking

A picker verbally requests a store order The system directs the picker to the first pick location and asks him to provide a two-digit check digit for that location Once confirmed the system will then tell the picker the quantity to pick After picker confirmation the system directs the picker to the next location until the order is complete

ldquoThere is no need to scan as the check digit associated with each pick location ensures that the picker is at the correct pick locationrdquo says Breuers

But even the best-laid plans could use some tweaking Ideally heavy items should be slotted toward the beginning of the pick path to ensure a stable base for a pallet Because of the variety of products this was not always possible In turn the system had to be configured to allow an operator to skip ahead to build that perfect pal-let Pickers could print a modified pick list showing good base building items as a visual reference

reaping THe benefiTSOver the past three years the team at London Drugs reports that it has been reaping the benefits of their voice sys-

tem paying back the upfront costs within 12 months Despite the fact that it wasnrsquot the most compelling fac-tor in determining payback manage-ment observed a 5 to 10 gain in productivity

ldquoAccuracy was the one area where we have experienced the biggest improve-mentrdquo reports Breuers ldquoWith voice pick errors are almost non-existent and through our auditing programs we have seen error rates as low as only one error in 3000 picks or 9997 accurate Other benefits include increased work flow visibility reduction of paper mate-rial costs and immediate distribution of work to pickersrdquo

With this success under its belt the company plans to adapt voice to its full-case conveyable picks as a future development step For now the imme-diate plan is to incorporate voice to its replenishment picking and their put-away processes Further progress wonrsquot stop there ldquoAs a company we are con-tinuously looking for opportunities to improve our customerrsquos experiencerdquo adds Breuers ldquoeven if these opportu-nities are far upstream from the actual retail storerdquo M

Maida Napolitano is a Contributing Editor to Modern Materials Handling

Voice Compared to PaperLabels

Source 2010 Vocollect Inc

Paperand Labels

Voice

Elapsed Time

Read nextlocation

Travel tolocation

Read nextlocation

Verify locationbull Read label or listbull Compare withactual location

Removelabel orlocatepencil

Pickand stickor check off list

Periodically during a shift

bull Travel to assignment pointbull Sortget labels or find listbull Travel to desk to reconcile discrepanciesbull Data entry (if required)

all are eliminated with voice

Hear next location Travel(eyes up and hands free)

Travel to next location

bull Speak check digitsbull Hear instructionsbull Perform task

Hear nextlocationTravel

Voice Advantage

Extreme AccuracyReduce errors by 85 vs paper and labels

ProductivityIncreased throughputmdash15-25 gains

Training50 reduction in end-user training

a special supplement to modern materials handling

MMH1103WDC_VoiceSuppindd 48 3911 1037 AM

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 49: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Spiralveyorreg

bull bull bull bull bull bull bull bull bull bull

FOCUS ON Picking Technology

Reseller partnership combines software multi-modal voice systemA combined solution for voice-directed picking includes the sup-plierrsquos voice picking software combined with LXErsquos ToughTalk voice-directed and voice-enabled computers The rugged hard-ware features advanced audio circuitry and noise-canceling func-tions Easily integrated with warehouse management systems the voice software enables workers to use a single device to perform voice scanning and keyboard functions for faster pick-ing and quick training while reducing fatigue Aldata 404-355-3220 wwwaldata-solutioncom

Picking cart equipped with voiceOffered as a paperless real time order fulfill-ment solution the PickCart with voice merges batch-picking methodology with a cart and voice-directed technology The system is ideal for discrete order fulfillment of low to mod-erate volume split case items Typical con-figurations include three to four shelves that

accommodate shipping cartons or containers for up to 40 multi-ple orders Each pick cart operator is equipped with a wearable voice terminal The system is managed by warehouse control software that releases the orders to each unit and directs the order picker along the most efficient pick path Dematic 877-725-7500 wwwdematicus

Color-coded pick-to-light interface The Trak3 pick-to-light system allows multiple order fillers to pick in a single zone Featuring multicolored indicator lights that enable up to four order fillers per zone the system enables simultaneous filling of multiple orders or directs operators to perform value-added services The energy-efficient LED dis-plays are easy-to-read simple to install and require minimal training Updated at-a-glance workload status screens allow for immediate zone assessments and redeployments during demanding times Intelligrated 513-881-5239 www intelligratedcom

Ultra-rugged mobile computers based on one platformThe 70 series includes four models of ultra-rugged mobile comput-ers encased in small lightweight form factors Models include the CN70 for field service transporta-

tion and logistics use the CN70e for direct store deliveries and route accounting the CK70 for parcel deliveries and the CK71 for manufacturing and warehouse use Features include a common platform Windows operating system 1D2D scan engines 80211n dual-band WLAN for better connectivity and communication IP67 sealing indestructible keypad and glass touch panel The units survive 6-foot drops in any temperature Intermec 800-347-2636 wwwintermeccom

ProMat Booth No 2327

MMH1103_Focus_onindd 49 3911 1147 AM

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 50: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Data goggles present confirm picksConsisting of control software head-mounted display and integrated camera the KiSoft Vision system uses augmented reality to present picking information to an operator through data goggles at exactly the time and place of relevance This enables pick-and-target tote con-firmations to be performed optically with no additional input devices needed Features include integrated navigation

FOCUS ON Picking Technology

route optimization for minimal travel and license plate tracking to ensure error-free picking The device easily integrates into existing warehouse management sys-tems Knapp Logistics Automation 678-388-2880 wwwknappcom

Zoneless pick-to-light systemWorking in conjunction with the sup-plierrsquos Pick-Max2 pick- and put-to-light system the WatchMe device tracks the picks each operator makes without requiring the operators to log in and out of zones This guarantees picker accountability and increases picking speed while reducing errors Each watch has a unique ID that is assigned to a picker by the control software enabling the system to operate in a zoneless mode By permitting any picker to pick from any location on the system SKU profiling and line balancing is no longer needed to equalize zones Innovative Picking Technologies 262-567-6525 wwwiptinet

Software drives pick to light performanceVersion 61 of the supplierrsquos order fulfillment execution software manages and drives the performance of multiple paperless picking products ranging from pick-to-light put-to-light and pack-to-light to voice and RF picking Features include easier installation enhanced dashboard capabilities with XPS docu-ment and automatic template display and a new graphical user interface By employing the Microsoft ClickOnce deployment model Windows-based applications can be published to a server or network file plus installations are simplified for automatic updates Lightning Pick 800-827-8878 wwwlightningpickcom

MMH1103_Focus_onindd 50 3911 1147 AM

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 51: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

mmhcom Modern Materials Handling M a r c h 2 0 1 1 51

Need to DOUBLE Storage capacity Westfaliarsquos ASRS can fit into

existing buildings only 20rsquo high

Need to PICK FasterWestfaliarsquos SavannaNETreg WMS

provides fast efficient amp accurate order picking at an affordable price

Westfalia Technologies Inc717-764-1115 bull 800-673-2522wwwWestfaliaUSAcom

OUR INNOVATIONYOUR SOLUTION

3-D Visualization

WMS Demo

ProMat 2011

Booth 3926

Automated Storage amp Retrieval Systems (ASRS)

SavannaNETreg Warehouse Management Software (WMS)

software supports multi-modal picking devices The Pick Execution software module for multi-modal pick-to-light voice-directed and RF-based picking now offers extended capabilities to provide labor management and velocity-based SKU picking analytics These new functions boost voice picking productivity by adding the operational tools for continuous pro-cess improvement such as re-slotting higher movers and opti-mizing the picking walk path Residing on a server and deployed as a thin client on the terminal the software is developed in Java for platform database and OS independence The voice application resides on the server and requires only the voice rec-ognition engine deployed as a thin client on the terminal the numina group 630-343-2600 wwwnuminagroupcom

MMH1103_Focus_onindd 51 3911 1147 AM

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 52: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

52 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Motorized Storage amp Retrieval Solutions

Space Saving Vertical Storagebull Bar Stock bull Spooled Products bull Tire Storage

bull Print Cylinders bull Rolled Goods bull Parts Storage

ldquoStorage amp Retrieval Solutions Since 1986rdquo

Contact Us Toll Free at 1-800-210-0141 or visit us online at wwwvidircom

Our newest model has a highly sophisticated control system for up to 50 courses 128 commands each programmed by PC or onboard touch screen It can easily mobilize a fleet of carts as a standalone AGV or as part of a managed AGV system with traffic control Like other Creform BST AGVs it raises and lowers a tow pin to pick up and deliver carts Other features include a non-contact laser bumper for safety and optional opportunity charging Best of all it can lower your material handling costs

wwwcreformcom bull 800-839-8823

IT DOES THE WORK OF SEVERAL ALL IN ONE

ITrsquoS MORE THAN AN AGVITrsquoS MORE THAN AN AGV

CRE-368 45x4625indd 1 3111 156 PM

FOCUS ON Picking

latest version of voice software supports central application management Version 40 of Voxware 3 software for voice picking has been released featur-ing an expansion of its voice manage-ment module The upgrades enable the deployment and management of voice picking applications from a central data center across multiple warehouses of dif-fering sizes and layouts Other features include enhancements to order picking replenishment and putaway applications To enhance open hardware support the software also includes embedded enter-prise-grade AirWatch mobile device man-agement technology allowing for secure monitoring management and support of all mobile devices in a fleet Voxware 609-514-4100 wwwvoxwarecom

Portable system increases picking efficiencyFor small medi-um or large operations the Mighty MAC is portable and compact The 16-channel picking unit can be rolled up to a conveyor line to accommo-date increased picking vol-umes including seasonal or promotional bursts As a wireless plug-and-play device the scalable unit can be expanded with addi-tional units as needed si systems 800-523-9464 wwwsihscommightymac

see us at ProMat

booth 4814

MMH1103_Focus_onindd 52 3911 1147 AM

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 53: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Innovative SystemsSolutions

wwwinterlakemecaluxcom1-(877)-MECALUX

FOCUS ON Picking

Wireless headset cancels background noise Featuring audio broadband transmission the BlueMaster headset for voice-directed picking includes technology that eliminates background noises to avoid interruptions Wireless and cable-free the headset eliminates tangled cords or snagged cables A replaceable 750 mAh bat-tery delivers 15 to 20 hours of running time The device embeds a Bluetooth module directly in the microphone capsule (rather than in the headphones) for enhanced ergonomics topVOX 847-842-0900 wwwtopvoxcom

Presswood pallets exempt from ISPM regulationsManufactured from wood waste and byproducts the Inca presswood pallet is molded under high heat and pressure Because of the manufacturing process the pallets are exempt from ISPM 15 regulations that require wood packaging material be heat-treated to kill insects or larvae that could infest native wood-lands Lightweight and durable the export pallets are offered in 11 standard sizes Formed without nails or staples they nest together when empty at a ratio of 41 Litco International 877-284-5043 wwwlitcocom

PrOdUCt Showcase

Transport 4000-pound loads on cart with four-wheel steering The four-wheel steering flat deck cart tows loads weighing up to 4000 pounds Capable of maneuvering two 48 x 48 inch pallets on its 48 x 96 inch platform the cartrsquos four-wheel steering improves tracking of carts in long trains This aids in cornering and maneuvering in tight aisles Features include a rugged laser cut and formed one-piece seven-gage deck that rides 15 inches off the floor a yoke mounted v-shaped push bar and a spring-loaded self-stowing tow bar clevis and pin hitch The cart rolls on non-marking 8 x 3 inch indooroutdoor polyurethane wheels that shed debris Kinetic Technologies 440-943-4111 wwwktecinccom

MMH1103_Focus_onindd 53 3911 1147 AM

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 54: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

54 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

Visit us at ProMat Booth 962 and See Whatrsquos New

(616) 583-1700 wwwfl ow-ritecom

aC-powered trucks conserve regenerate power for longer run timesOffered in capacities from 4000 to 6500 poundsmdashincluding a new 5000-pound modelmdashthe 8-Series four-wheel lift trucks for indoor handling are AC-powered with subsystems that conserve or regenerate power to maxi-mize operational productivity between battery charges The motor compensates for battery depletion for longer run times and consistent power output Regenerative braking coast control and plug-and-foot braking extend run times and prolong brake component life To reduce maintenance costs there are no motor brushes springs commutator or wearable parts to service and replace Operator ergonomics is enhanced with expanded leg room four-way adjustable suspension seat joystick hydraulic controls multifunction digital display and ample visibility from the driverrsquos seat toyota Material Handling Usa 800-226-0009 wwwtoyotaforkliftcom

Handle steel slit coils easilyFor easy handling of densely packed steel slit coilsmdashincluding those that are thin slit to 1-inch wide with 15 inches of space betweenmdashan adjust-able coil lifter features flexible lifting legs The legs fit between the coils and rotate 90 degrees into the inner diameter of the coil for safe lifting The hooks are adjustable in 2-inch increments to permit handling of coils with varying thicknesses Bushman avontec 800-338-7810 wwwbushmanavonteccom

Product showcase

Workbench and storage products eligible for leed creditsA complete selection of industrial workbenches can be speci-fied from several sizes of steel hard maple compressed wood or plastic laminate work surfaces Either mobile or static the workbenches feature a variety of heavy-duty accessories and electrical options Purchasers of the supplierrsquos productsmdashinclud-ing filing and storage systems steel office furniture industrial and institutional shelving lockers and shop equipmentmdashare eligible to apply for several of the US Green Building Councilrsquos Leadership in Energy and Environmental Design (LEED) credits Credits encompass recycled content regional extraction and manufacturing and low-emitting material and paint content tennsco 800-251-8184 wwwtennscocom

MMH1103_Focus_onindd 54 3911 1147 AM

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 55: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Lightweight paper-based planks protect products in shipmentMade from linerboard kraft paper and water-based adhesives NaturePlank engineered honeycomb plank protective packag-ing offers strength and blockingbracing in a lightweight form to secure products during shipment The paper content is made with SFI-certified renew-able virgin and post-consumer recycled fibers and is offered as an all-natural alternative to petroleum-based plastic planks Measuring 48 x 108 inches the planks come in thicknesses of 1 and 2 inches It can be die cut routed or lami-nated Pregis 877-692-6163 wwwpregiscom

mmhcom MODERN MATERIALS HANDLING M A R C H 2 0 1 1 55

mmhcom MODERN MATERIALS HANDLING A P R I L 2 0 1 0 47

programmable optical sensors for safe operation near pedestrians and in confined spaces The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications Toyota Material Handling 800-226-0009 wwwtoyotaforkliftcom

Robotic pallet truck handles 8000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport After an operator positions the vehiclersquos 96-inch long forks under the pallet the industrial mobile robot transports pal-lets to an assigned location automatically positions them and returns to the original starting pointmdashor other pre-assigned locationmdashfor more work The vehicle handles up to 8000 pounds and stores 25 miles of learned routes

AGVs

Your Complete Lifting Solution

Visit wwwpositechcom

TaurusShown with Optional Pedestal Mount

SAMShown with Optional Pedestal Mount

Transfer Arm

ReactionArmShown with Optional Pedestal Mount

LodeArmShown with Optional Trolley Mount

Powered by a 24-volt DC battery the vehicle travels at a maximum speed of 35 miles per hour Seegrid 877-733-4753 wwwseegridcom

Roller forks handle palletless loads

Using a patented roller fork mecha-nism the pallet-free automatic guided vehicle eliminates the need for pallets within a facility The vehicle handles loads on slip sheets and offers stacking and push back rack capability It may also be used for pal-let handling The automated system reduces labor costs product damage and operational costs HK Systems 262-860-6715 wwwhksystemscom

MMH100401ProdFocus_ID 47 482010 113513 AM

Buildings available up to

300 wide Low in cost per

square footNatural daytime

lightingEasy to relocate

ExpandableLittle or no

property taxes

Call one of our ClearSpan Specialists at 18666431010 or visit us at wwwClearSpancom Mention code CST1109

Sustainable Design-Build Solutions

Flexible Finance SolutionStermS up to 10 yearS rateS aS low aS 499 aS little aS 10 down

on Fabric StructureS amp GreenHouSeS

Subject to credit approval

Laser range finding system guides AGVFor use in lean manufacturing operations the ADAM automatic guided vehicle offers software and hardware enhancements ideal for use in electronics automotive plastics and other non-linear production applications Features include a laser-range finding system for vehicle location and obstacle avoidancemdashinstead of guide wires reflectors or transpondersmdashon-vehicle keypad wireless call buttons and lithium ion battery that accepts opportunity charging For mapping navigation and drive control a user-friendly on-board PC is included RMT Robotics 905-643-9700 wwwrmtroboticscom

Virtualization software cuts server hardware needsTo help manufacturers leverage the benefits of virtualizationmdashincluding the consolidation of servers to cut energy use and reduce environmental footprintmdash10 VMware Ready software products have been added to the PlantPAx process automation system The technologies dynamically allocate servers and other hardware resources when and where theyrsquore needed By insert-ing a thin layer of hypervisor software directly on the computer hardware or on a host operating system multiple operating systems run concurrently The subsequent pool of computer resources to ensure that the highest-priority applications have the resources needed without excess hardware Rockwell Automation 414-382-2000 wwwrockwellautomationcom

MMH1103_Focus_onindd 55 3911 1147 AM

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 56: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Protect contents of freezers To protect temperature- controlled items and finished products an insulated door blanket eliminates the exchange of air at a door to prevent spoil-age or damage that occurs when powered doors on coolers or freezers unexpectedly shut down The blanket is construct-ed of durable industrial fabric (offered in a range of colors)

surrounding multiple layers of recyclable anti-microbial polyes-ter batting Custom-constructed to fit individual door openings the blanket comes in a portable storage bag On-site design consultation complete drawings turnkey project support and installation coordination are included Zoneworks 800-553-4834 wwwzoneworkscom

56 M a r c h 2 0 1 1 Modern Materials Handling mmhcom

800-466-6738 bull wwwcowinglobalcomusa

See us at Promat 2011Booth 4214

Formerly Carico Cowin

Product showcase

reduce operational costs in pharmacy fulfillmentSolidSuite Rx streamlines packaging distribution inventory reporting and control over the entire central filling process for pharmaceuticals The standard suite offers various levels of visibility controls and real-time stats For the addition of func-tionality as system requirements evolve the software employs a modular architecture The system integrates with those used for conveyor sortation picking shipping verification and other warehouse control functions Cornerstone automation systems 800-401-0304 wwwcornerstoneautosyscom

led dock light minimizes trailer impactsMounted next to overhead doors on loading docks the Flex LED dock light illuminates truck trailers Featuring a sleek pro-file the compact unit minimizes unintended impact with over-head doors or fork trucks on loading docks Should an impact occur the flexible arm and hinged bracket allow the fixture to swing out of the way There is no filament to break allowing the solid-state light source to withstand collisions Energy-efficient and low maintenance the LED lamp is rated for 50000 hours of life and operates on 16 watts for 84 energy savings over incandescent 150-watt lamps Phoenix Products 800-438-1214 wwwphoenixproductscom

transform shelving into high-density storage Transforming traditional shelf storage into high-density drawer storage the shelf converter uses the full cubic capacity of existing storage space The converter is ideal for manufac-turing maintenance and repair operations and parts cribs The modular drawers are set into a frame that fits a number of standard shelving brands Ideal for storage of small- to medium-sized items in drawers or on roll-out trays the system is easily expandable as storage needs change Drawers hold up to 440 pounds and can be fully extended Partitioning acces-sories create compartments that precisely fit contents lista international 800-722-3020 wwwlistaintlcom

MMH1103_Focus_onindd 56 3911 1147 AM

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 57: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

Truck series lifts up to 19000 poundsOffered with a choice of engines the Veracitor VX truck series features low fuel consumption minimal noise and reduced maintenance and operating costs Both cushion and pneumatic

tire classes are included Capable of lifting capacities from 3000 to 19000 pounds the trucks employ a maintenance-free built-in stabil-ity system The durable rugged powertrain incorporates computer-controlled engine and transmis-sion sturdy clutch packs and strong gears and shafts All trans-missions have smooth electronic inching to cut maintenance costs

by eliminating periodic adjustments For maximum brake life an auto decelerator system automatically slows the vehicles when the accelerator pedal is released Yale Materials Handling 800-233-9253 wwwyalecom

mmhcom Modern MaTerials Handling M a r c h 2 0 1 1 57

LABEL HOLDERS

DONrsquoT COST-THEY PAY

8002423919wwwaignerindexcom

infoaignerindexcom

Bumpy Rides

L O G I S T E R R A I N C

Secure YourTerminal and

with a LOGISTERRAtruck-mount Holder

infologisterracom bull wwwlogisterracom619-280-9992

reg

Holster YourSide Arm

bull Proven productsbull Years in servicebull Deployed worldwidebull Made in USA

or a slingerright or left

ergonomic Holster systemslabel Holders

execuTive offices111 Speen StreetFramingham ma 01701508-663-1500

Brian ceraolopublisher bceraoloehpubcom

Kelly Jonesproduction managerkjonesehpubcom

charles TannerDirector of audience marketingctannerehpubcom

sales officesCt De FL ma mD me mi nh nJ nY Oh pa ri Vt WV eastern Cansteve Mccoy national Sales Director 508-261-1120 Fax 508-261-1121 smccoyehpubcom

ia iL in KS mn mO nD ne SD Wi Central CanBob casey District Sales Director 847-223-5225 Fax 847-223-5281 bobccaseyrepscom

aL DC De FL KY ga mD nC pa SC tn Va WV greg Bolen District Sales Director 704-875-7977 Fax 866-680-5930 gregbolenthebolengroupnet

WeB operaTionsclive purchaseDirector Web Operations cpurchaseehpubcom

cusToM arTicle reprinTsreprint management Servicesthe YgS group (800)290-5460 x100 modernmaterials theygsgroupcom

Magazine suBscripTionsStart renew or update your Free magazine subscription at wwwmmhcomsubscribeContact customer service atWeb wwwmmhcomsubscribeEmail mmhsubsehpubcomPhone 1-800-315-1578 x294Mail peerless media pO Box 1496 Framingham ma 01701

eneWsleTTer suBscripTionsSign up or manage your Free enewsletter subscriptions at wwwmmhcomenewsletters

Business staff

classifiedrecruitment

To advertise or for more information

please contact Jennifer Drevline

847-223-5225 ext 11 jenniferdcaseyrepscom

Tugger enhanced for easier operationNew features for the BST AGV tugger include an easily acces-sible lever for manual engagedisengage of the drive wheel a drive chain cover for added safety a battery tray for faster battery changeouts low-rolling resistance casters obstacle sensor with 180 degrees sensing angle and an up-front acces-sible sound volume control The units connect to and discon-nect from stationary carts equipped with a compatible hitch creform 800-839-8823 wwwcreformcom

MMH1103_Focus_onindd 57 3911 1147 AM

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 58: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

modern 60 Seconds with

Steve ThomasTiTle Television host and producer

locaTion Boston Mass

experience An Emmy Award winner Thomas was the host of ldquoThis Old Houserdquo for 14 years He hosted ldquoAsk This Old Houserdquo a series in which viewer questions were addressed on-air for its first year A speaker and serial renovator Thomas consults on residential building and renovation over the United States

Web wwwstevethomashomecom

Modern at proMat yoursquore going to talk about green building Just what do we mean by that today

Thomas There is no common language around green building In reality wersquove been doing it for a long time The very first project I did on ldquoThis Old Houserdquo 20 years ago was a green building It was a restoration barn in New Hampshire but by LEED standards it would be gold or platinum Many of these techniques have been around for a long time Now in the last five or six years this concept of going green has emerged and the industry has taken five or six construction disciplines and put them into one package

Modern Has the concept of going green become political and does that affect the decision to go green

Thomas Green building has become political and in my mind itrsquos become too political When you get right down to it there are concrete economic reasons for sustainable building For instance the less money you have to pump in to heat a building the more yoursquore going to have for your bottom line A good many companies do realize that

For instance when Wal-Mart goes to Kenworth and Caterpillarmdashand they aremdashto develop more fuel-efficient trucks and engines thatrsquos huge If you look at the construction industry I donrsquot think therersquos a commercial building going up today that is not being built to some kind of green standard The benefits are demonstrable

Modern can we quantify those benefits

Thomas Sure If you can take advantage of technologies to build

a smaller distribution center and get the same amount of throughput thatrsquos a demonstrable benefit

Modern Whatrsquos the most important message you want to get across at proMat

Thomas Green building is a way to improve our position economically We stand astride this moment in history when critical decisions will be made that will affect our kids and grandkids Sustainable building is an important piece of the strategic pie going forward M

58 M a r c h 2 0 1 1 Modern MaTerials Handling mmhcom

MMH1103_60Secondsindd 58 3911 902 AM

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 59: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

WELL HUNGFOR GUARANTEED SATISFACTION

Every component of the PowerfoilregX ceiling fan is precision engineered by

Big Ass Fans for Big Ass Fans

Case in point the NitroSeal Driveordf the heart of Powerfoil X employs unequaled tapered roller

bearings to ensure dead center concentricity and an increased capacity for carrying the hanging

(axial) load of the hub and airfoils These conically shaped bearings off er a larger contact area than

spherical (ball) bearings typically found in off -the-shelf gearboxes This means low stress on contact

areas cooler operation and decreased pressure on lubricant THORN lm

Bottom line Tapered roller bearings are just one of the countless features guaranteeing your

Big Ass Fan has no equal and is built for the long haul

Covered by one or more of the following US Patents 6244821 6589016 6817835 6939108 7252478 7284960 D587799 D607988 and other patents pending

copy2011 Delta T Corporation dba the Big Ass Fan Company All rights reserved

wwwbigassfanscom | (877) BIG FANS

MMH0311_adsindd 3 3911 904 AM

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth
Page 60: Coke’s new take on voice - Modern Materials Handling · 16 Coke’s new take on voice. To revitalize its distribution processes, Coca-Cola Refreshments U.S.A. implemented a VoIP-based

wwwkardexremstarcom

Step into a world of dynamic storage and retrieval systems with a solution that gives you total freedom

High Density Storage Maximize storage density in up to 80 less fl oor spacePractical Design With a basic VLM design the Element VLM is quick and easy to implement

Save space time and money

The intelligent dynamic storage lift system for high density storage in a compact footprint

Call for Information

800-639-5805

MMH0311_adsindd 4 3911 241 PM

  • Contents
  • COVER STORY
    • SYSTEM REPORT
      • Cokersquos new take on voice
      • How VolP works at Coca-Cola
          • FEATURES
            • 2011 INDUSTRY OUTLOOK
              • Optimism shines
                • BIG PICTURE
                  • The mobile supply chain is on the move
                    • EQUIPMENT 101 SERIES
                      • How ASRS works
                          • DEPARTMENTS ampamp COLUMNS
                            • Upfront
                            • This month in Modern
                            • Lift Truck Tips Fast-charging
                            • Supplement Warehouse ampamp DC
                            • Focus On Picking technology
                            • 60 Seconds with
                              • NEWS
                                • New rules for shipping to Canada
                                • ISM reports 21 months of manufacturing growth