dsc logistics: labor management gets the job done · dsc logistics: labor management gets the job...
TRANSCRIPT
®
DSC Logistics:Labor management gets the job done
Page 18
SPECIAL REPORT
Pallet usage survey 24INFORMATION MANAGEMENT
Pick-to-light technology 32BEST PRACTICES
Improving reverse logistics 36
Jim Chamberlain, director of industrial engineering, DSC Logistics
®
m m h . c o m
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
September 2010
WEBCAST:
Results of the 2010 Pallet Usage and Trending StudyThursday, October 28 at 2:00 p.m. ETRegister: www.mmh.com/palletsurvey
MMH1009Cov.indd 1 9/7/10 2:20 PM
CLICK HERE for our “Workstation Integration System Evaluation White Paper”
�
�
MM1005 ppxx Dehnco.indd 1 5/14/10 9:03 AM
How can you make your existing or future
material handling system a more sustainable
and energy efficient operation? Dematic has
developed a large suite of technologies and
operating methods that not only help save
energy and preserve the environment, but also
increase system performance and productivity.
1-877-725-7500www.dematic.com
Green by Design... Sustainability Solutions at Work
Variable speed convey and sort reduces power consumption
Dematic Multishuttle with DC electrical system is low energy user
Variable frequency drives reduce energy usage
Energy Saving Technology
9 Multishuttle with DC electrical system 9 Conveyor with DC motorized rollers 9 New conveyor (longer sections with
one drive) 9 Variable frequency drives 9 Energy efficient powered pulleys 9 High efficiency lighting
Energy Saving Methods
9 Peak energy management 9 Run on demand conveyors 9 Variable speed convey & sort 9 High density storage 9 Paperless picking
Learn more at www.dematic.com/dematic-solutions
MM1009_ads 2 9/7/10 9:07 AM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 3
INVENTORY ISSUES impact operations substantially, especially when it comes to finances; and saving money by managing inventory efficiently is a major focus for most industry and market segments, this according to a recent Tompkins Supply Chain Consortium’s “Finished Goods Inventory Management” survey (www.tompkinsinc.com/finished-goods-inventory). Findings also include how companies are managing finished goods inventories, benchmarking and best practices. More than half the companies surveyed saw a decrease in inventory levels in 2009, yet customer satisfaction remained the same or improved for nearly 80% of these companies.
WHEN MOTOMAN ROBOTICS (www.motoman.com) recently broke ground for its new Miamisburg, Ohio, company headquarters and manufacturing facility, Dexter Bot donned a hard hat and turned the first shovel of dirt. What’s the big deal? Dexter Bot is a robot—Motoman’s SDA10D dual-arm robot, to be exact. Dexter Bot is just one example of the robotic automation solutions that will be manufactured at the 300,000-square-foot, state-of-the-art facility. Upon its expected move-in date of June 2011, the location will serve as Motoman Robotics’ main manufacturing facility for its North and South American operations.
TO SEE HOW state-of-the-art materials handling equipment operates in a realistic environment, supply chain management and materials handling professionals usually have to visit a warehouse or DC. However, attendees of this month’s Council of Supply Chain Management Professionals Annual Global Conference (CSCMP, Sept. 26-29, San Diego Convention Center), will have the unique oppor-tunity to see equipment in action at the Supply Chain of the Future Lab. Materials handling equip-
ment manufacturers CHEP, Frazier Industrial, The Raymond Corp. and Vocollect will demonstrate their latest equipment and technologies in this real-application simulation.
Motoman robotics breaks ground
6%The amount of consumer returns in the U.S., a value that exceeds the GDP of 2/3 of the world’s countries. See story, p. 36.Source: CSCMP’s Journal of Business Logistics, Vol. 30, No. 1 by James Stock and Jay Mulki.
High-tech warehouse simulation
MHia to launch Modex 2012
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
> 10%Reduction
2.9%
1-9 %Reduction
15.2%
NoCharge
32.4%
1-9 %Increase
39.1%
No Response
3.8%
> 10%Increase
6.7%
Changes in customer satisfaction levels(Measured by order fill rates or the equivalent, year end: 2008-2009,
percentage of respondents)
Finished goods inventory levels fall, order fill rates rise
THE MATERIAL HANDLING INDUSTRY of America (MHIA, www.mhia.org) is launching a new event and saying goodbye to the North American materi-als handling show previously held in Cleveland. Modex 2012 (www.modexshow.com) will be
held February 6-9, 2012, at the Georgia World Congress Center in Atlanta. The tagline,“Solutions that move supply chains,”reflects an expanded footprint that brings together materials handling with logistics solutions. Modex 2012 will showcase equipment and sys-
tems solutions as well as learning opportunities that span the entire supply chain across manufacturing, assembly and distribution.
see story on reverse logistics, page 36
Source: Tompkins Supply Chain Consortium
MMH1009_Upfront.indd 3 9/7/10 11:13 AM
I KNOW WHAT I NEED BEFORE I NEED IT.
The more power you have, the better. Which is why you demand strong, reliable communication and data access to keep everything running smoothly. With wireless solutions from Verizon, you have unbeatable access to the information you need to turn unknowns into absolutes. So you can control more, and worry less.
VERIZONWIRELESS.COM/MANUFACTURING
Network details & coverage maps at vzw.com. © 2010 Verizon Wireless.
VWR60790_Modern_Material_Handlin _1pg_v1a_rc.indd 1 8/30/10 11:47 AM
MM1009_ads 4 9/7/10 9:07 AM
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 5
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
When Jim Chamberlain and his team at DSC Logistics rolled out LMS, the best improvement enabled a nearly 35% reduction in labor costs.
VOL. 65, NO. 9
DEPARTMENTS & COLUMNS 3/ Up Front 7/ This Month in Modern16/ Lift Truck Tips: Pallet trucks40/ Focus On: Lift trucks44/ Product Showcase46/ Warehouse/DCs Supplement: Lift trucks50/ 60 Seconds with...
NEWS 9/ What do you get when you merge
Dematic and HK Systems?11/ AS/RS group releases quarterly report12/ ISM partners with Supply Chain Council13/ ISM manufacturing index inches up in
August
COVER STORYSYSTEM REPORT
18 Labor management gets the job done 3PL leader DSC Logistics revved up productivity with conventional processes driven by a labor management system.
22 Managed labor DSC created a self-funding incentive plan that delivers a 20% improvement in productivity.
FEATURESSPECIAL REPORT
24 Pallet Survey: What moves our readersFrom wood to plastic to pallet pools, our readers tell us what’s important in pallets.
PRODUCTIVITY SOLUTION
30 A perfect fit for clothing retailerMotorized driven roller conveyor is tailored to suit the needs of high-end apparel retailer Christopher & Banks.
INFORMATION MANAGEMENT
32 Lightening the (picking) loadAdvancements in pick-to-light technology and a variety of new applications have prompted a growth in use and productivity.
BEST PRACTICES
36 Learn from your returnsThe best practice in reverse logistics is to prevent product from coming back in the first place. Since that’s unlikely, it’s best to understand why goods are returned and learn how to capture the greatest value from the process.
60 Seconds with…Mark White, page 50
Modern Materials Handling ® (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 $20.00. 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 mailing offi ces. POSTMASTER: Send address changes to: Modern Materials 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. (C)2010 Peerless Media, LLC.
®
PHOTO: MARK SEGAL/GETTY IMAGES
MMH1009_TOC.indd 5 9/10/10 3:55 PM
The supply chain is tough. That’s why iGPS’ state-of-the-art plastic pallets are built even tougher. Solid top-deck and unitary construction provide a new level of strength and security for rental pallets – putting an end to the broken boards, splinters and protruding nails typical of wooden platforms. Stronger and tougher, iGPS pallets are still 30% lighter than wood. Their uniform size makes them ideal for use in automated environments, and they’re the only multi-use pallets to meet GMA and NIOSH weight standards. Learn all the strong reasons to switch, visit www.igps.net
STRONGER
ONLY THE STRONG SURVIVE
C M Y K
Cosmos Communications 1
2ej
16578a 08.06.10 133
Q1 Q2
©iGPS 2010
MM1009_ads 6 9/7/10 9:07 AM
m m h . c o m MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 7
®
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 [email protected]
Bob TrebilcockEXECUTIVE EDITOR
Noël P. BodenburgEXECUTIVE MANAGING EDITOR
Lorie King RogersASSOCIATE EDITOR
Sara Pearson SpecterEDITOR AT LARGE
Roberto MichelEDITOR AT LARGE
Jeff BermanGROUP NEWS EDITOR
Josh BondCONTRIBUTING EDITOR
Mike RoachCREATIVE DIRECTOR
Wendy DelCampoART DIRECTOR
Daniel GuideraILLUSTRATION
Brian CeraoloGROUP PUBLISHER [email protected]
Editorial Advisory Board
Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE
John HillESYNC
TRANSYSTEMS
Susan RiderRIDER & 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 SubscriptionsFREE magazine subscriptions available.E-mail: [email protected]/info/subscribe
MICHAEL LEVANSGROUP EDITORIAL
DIRECTOR
THIS MONTH IN MODERN
This month’s System Report represents a subtle shift away from the “enve-lope-pushing” automation that we
traditionally feature on our cover and directs the focus instead on some fundamental “blocking and tackling.”
Now, don’t get me wrong: No one loves a good high-tech automation implementa-tion story better than I do. However, what I found most intriguing in this month’s cover story is that Jim Chamberlain and his management team at DSC Logistics have signifi cantly improved a few age-old pro-cesses simply by adding the right amount of technology with just a sprinkle of labor metrics.
For Chamberlain, director of industrial engineering at DSC, a third party logistics provider (3PL), it just doesn’t get any more fundamental than labor management. “As a 3PL, labor is the biggest component to our business,” Chamberlain tells executive editor Bob Trebilcock this month. “And our ability to manage that labor could be seen as a differentiator.”
A quick look at DSC’s day-to-day opera-tions revealed to Chamberlain the important role an improved labor management process could play. While DSC does some limited piece picking and parcel shipments for its clients, the bulk of its work is case and full pallet handling and distribution—two of the most labor-intensive operations inside the four walls. And, having implemented engineered labor standards as well as a labor management system (LMS) in his fi rst job out of college, Chamberlain was anxious to ap-ply this experience to DSC’s operations.
Starting on page 18, Trebilcock walks us through Chamberlain’s thoughtful imple-mentation process—from establishing a clear-cut set of goals (reducing turnover, improving productivity, slashing labor costs), to selling the benefi ts of LMS and labor standards to the executive team, to choos-ing a vendor, to rolling out the solution to the associates on the fl oor.
What materializes is nothing short of impressive. With the help of its LMS and es-tablished labor standards, DSC has created an incentive-based pay program in 22 of its 35 logistics centers around the U.S. And while Chamberlain says that the results have varied from site to site, one facility achieved an impressive 35% reduction in labor costs. “As a network,” says Chamberlain, “we’re averaging just north of 20% reduction in our variable labor costs.”
If you fi nd yourself inspired by some of the fundamentals that Chamberlain has put into place, you may want to register for Modern’s 2010 Warehouse & DC Virtual Conference: The New Fundamentals at mmh.com. Bob Trebilcock and I will be joined by a number of materials handling consultants and practitioners for the con-ference on Sept. 30 at 11:00 a.m. ET. They will present fi ve workshops covering the basics of warehouse/DC management.
If you’re a newcomer to the business or a savvy veteran, attending this confer-ence—coupled with the lessons Chamber-lain shares this month—should help you focus more intensely on the those funda-mentals that lead to improved day-to-day operations.
Focus on fundamentals
MMH1009_Editorial.indd 7 9/8/10 10:06 AM
Productivity Solutions in Motion: The Intelligrated Way
Why should your order
fulfillment solution be designed
The Intelligrated Way?
The Intelligrated Way means that your solution
is designed with only your needs in mind. Our team
of experienced professionals is committed to providing
you with a solution to increase system efficiency and
reduce operational costs. With the industry’s most advanced
technologies for quick, real-time visibility, Intelligrated order
fulfillment tools allow you to plan, monitor and adjust to keep your
operations on track – all from the palm of your hand.
The Intelligrated Way means you can trust in the reliability and dependability of our
systems. The Intelligrated Way provides productivity, which means you’ll have more time
to visit the DC floor without sacrificing system visibility.
With productivity solutions from Intelligrated, you’ll have more time to leave your desk and visit the DC floor.
+1 866.936.7300 www.intelligrated.com
MM1007 ppxx Intelligrated.indd 1 6/24/10 9:41:31 AMMM1009_ads 8 9/7/10 9:08 AM
DISCUSSIONS ABOUT THE potential acquisition of HK Systems by Dematic began just four to fi ve months ago, lightning speed given the size of the two companies. But, Dematic had its eye on HK for several years, accord-ing to John Baysore, president and CEO of Dematic Corp. (www.dematic.us). “We talked about doing this for years in our inner circles,” Baysore said. “We always thought HK was the one company that was a perfect fi t in terms of being complementary to what we already do with the least amount of overlap.”
Dematic, a leading global sup-plier of integrated materials handling solutions and services, recently an-nounced it has signed an agreement in principle to purchase HK Systems (www.hksystems.com), a North Ameri-can automated materials handling and software solutions provider. The transaction is expected to close sometime in the third quarter of 2010. In Modern’s annual systems supplier rankings for 2009, Dematic placed No. 3 on the list with $1 billion in worldwide revenue and HK Systems came in at No. 17 with $200 million in revenue.
SYSTEMS SUPPLIERS
THE COMBINATION OF THE TWO SYSTEMS SUPPLIERS SHOULD CLOSE IN THE THIRD QUARTER OF 2010.
What do you get when you merge Dematic and HK Systems?
BY BOB TREBILCOCK, EXECUTIVE EDITOR
m m h . c o m MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 9
Company Briefi ngs | Bob Trebilcock
Unemployment and the manufacturing economy
www.mmh.com/blog/unemployment
Di@blogbest of Modern’s blogs
Modern launches new Pallet & Packaging newsletterModern readers seem to love pallet stories. That’s one reason we’ve launched a monthly pallet newsletter. Executive editor Bob Trebilcock got the idea after visiting with pallet and packaging suppliers at NA 2010 in Cleveland in April. He said, “It won’t be all wooden pallets all the time. I’ll also write about plastic and metal pallets and I’ll look at alternative pallets, like pallets made from paper and composite materials.”
The newsletter will also include information about the products that complement and extend the pallet —everything from palletizing on the front end to totes, containers, dunnage and stretch and shrinkwrap on the back end. Basically, everything that goes into creating the optimal unit load to get your product from point A to point B.
To subscribe, go to: mmh.ehpub.com/info/subscribe, select FREE e-newsletters and fi ll out the request to include Modern Pallets and Packaging Report.
What’s interesting about this acquisition is that it feels strategic and not desperate. Although considerably smaller than Dematic, HK has remained a strong player through the recession.
In addition to the products and solu-tions it provides, HK remains an industry thought leader—their an-nual logistics conference in Park City, Utah, has a strong turnout. “This was not a merger where we needed to do something,” said John Splude, HK’s
executive chairman. “HK is fi nancially very strong and profi table.” Instead, Splude said he and HK’s investors
Dematic is strong in case and tote handling mini-load systems, along with pick-to-light and voice-enabled case and each picking solutions.
MMH1009_News.indd 9 9/7/10 2:16 PM
10 S E P T E M B E R 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
Protect Your Dairy ProductsWith Buckhorn Intermediate Bulk Containers
Buckhorn reusable plastic IBCs, made from FDA-approved materials, are the ideal choice to protect your dairy products and ingredients. The perfect way to
reduce transport costs and increase productivity, Buckhorn IBCs are:
• Hygienic • Stackable & Collapsible • Durable • RFID Traceable • Recyclable
Call Buckhorn at 800-543-4454 or visit www.buckhornibcs.com to get the facts and request a FREE on-site packaging assessment.
SAFESECURE
Ship and Store
Protect Your Dairy Products
SECURE&
©2010 Buckhorn, Inc./Myers Industries #10149
believed the time was right to look for investment opportunities and a partner.
As for Dematic, the company has gained 10 points of market share in recent years, according to Baysore. So why now? The timing was right, said both executives.
For HK, it was the reality that the world is going global. Up to now, HK had only stuck its toe into interna-tional waters. Based in Luxemburg, Dematic is by defi nition an interna-tional company. “Dematic brings us a global presence, they are a very strong fi nancial partner, and they
bring us European technology in each and case handling,” says Splude. “That is very exciting, since that is the part of the U.S. market that seems to be growing the fastest.”
Splude added that the complex-ity of the supply chain, especially the proliferation of SKUs in the food and brewing industries where HK has a number of customers, is demanding more case and each handling solu-tions. That’s not HK’s strong suit. Its strength is in pallet handling—unit load AS/RS systems, AGVs, and engi-neered systems for manufacturers—and parcel handling systems.
Dematic, on the other hand, does have strength in case and tote han-dling mini-load systems, along with pick-to-light and voice-enabled case and each picking solutions. While De-matic manufactures pallet-handling cranes in Europe, it does not have North American production of those cranes. HK does.
In addition to manufacturing, HK is stronger in a couple of industry segments where Dematic is not represented, including document storage (think mini-load AS/RS in libraries) and the military. Because of the potential acquisition, De-matic can once again sell into the parcel handling business. “Through past agreements with former own-ers, Dematic can’t sell our sortation solutions into the parcel market,” Baysore said. “HK does sell into that market.” Dematic can also add AGVs to its portfolio, something they don’t produce anywhere.
Both companies have warehouse control systems (WCS); HK, however, brings ready-built software function-ality to areas like unit load handling that Dematic doesn’t have. “Software is like a foreign language,” said Bay-sore. “Just because your software is good in general merchandise doesn’t mean it’s good in storage.” HK also has warehouse (WMS) and transpor-tation management (TMS) software; Dematic does not.
While Dematic is already one of
MMH1009_News.indd 10 9/7/10 2:16 PM
m m h . c o m MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 11
What can an MDR Spiral Tower do for you?
• Saves space
• Zero contact, zero pressure accumulation
• Uphill, downhill and reversible
• Ships fully assembled
Find out what our 24 Volt DC Motorized Drive Roll Conveyor can do for you.
Give us a call, e-mail us, or visit our website.
28121 Scippo Creek Rd. • Circleville, OH 43113Phone: 877-532-9070 Ext. 301
E-mail: [email protected]: www.capitolconveyorsinc.com
of consumption than ever before.An AS/RS—whether a vertical or
horizontal carousel system or a fi xed-aisle, crane-based system—plays a key role in ensuring the quality and safety of consumer products. It does that by controlling the storage environment and maintaining reliable data.
Although these systems are ap-
plied in many industries, two in par-ticular call for critical strengths when it comes to environmental control in the cold chain: Pharmaceutical/medi-cal supplies and food/grocery. “We need strict monitoring devices that both create a hard copy log and also communicate electronically to various facilities if something happens,” said
the largest producers of conveyor, it gains access to HK’s network of distributors.
How big a deal then is this? “I had a company-wide town meeting with our employees on Wednesday,” Bay-sore said. “I told them that I believe in a few years the industry will look back at this as a watershed moment. It’s a perfect marriage.”
MHIA
AS/RS group releases quarterly reportTHE AUTOMATED STORAGE and re-trieval systems (AS/RS) Industry Group of the Material Handling Industry of America (MHIA, www.mhia.org) has released its Fall 2010 Quarterly Report titled “AS/RS: A Key Link in the Cold Chain.” The report asserts that with today’s AS/RS solutions, quality control can be maintained closer to the point
2010 Warehouse & DC Best Practices
Conference Increasing Productivity: The New Fundamentals
VIRTUAL CONFERENCE
Thursday, September 30, 201011:00 a.m to 7:00 p.m. ET
Join Modern’s group editorial director Michael Levans, executive editor Bob Trebilcock, and a select group of materials handling analysts, consultants and practitioners as they share a new set of fundamental warehouse/DC management best practices that are helping supply chain professionals better target their investments in an effort to reduce handling costs, improve facility operations, and increase overall productivity.
Go to www.mmh.com/fundamentalsVC to register.
MMH1009_News.indd 11 9/7/10 2:16 PM
12 S E P T E M B E R 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
The reason is simple: square tubes expose more surface area of the positive plates to the electrolyte, which delivers higher sustained voltages (and higher work capacity) than in round or flat plate designs, throughout the discharge cycle.
We call this the Ironclad® Effect, because it’s an advantage you get with every Ironclad battery from EnerSys®. To find the Ironclad battery that’s right for your application, call 1-800-EnerSys.
Exclusively Square. Exclusively Powerful.
Exclusively Ironclad.
Hogging the Spotlight!
And wHy not? For tHE PASt 100 yEArS, nobody HAS mAtcHEd tHE work cAPAcIty oF our IronclAd® bAttErIES.
Hanel Storage Systems’ Brian Cohen, chair of MHIA’s AS/RS Industry Group. “This can document that for whatever lot number or case number, tempera-ture was maintained throughout a product’s entire stay in the system.”
An AS/RS can serve as one of the cold chain’s strongest links by mak-
ing up for variability in the weakest link. These points are when product spends time outside a temperature-controlled space. The AS/RS owner’s goal is to minimize the effects of those times by getting products into the system as quickly as possible. That requires the ability to ensure
system capacity at a moment’s notice while slotting those products by date, and sequencing them by customer.
With interfaces to supply chain execution and enterprise resource planning systems, an AS/RS can be a window to product fl ow and environ-mental data from the manufacturing line to the store shelf. As the needs for environmental control and ac-countability grow in many industries, AS/RS users in the pharma and food chains will show how it’s done.
EDUCATION
ISM partners with Supply Chain CouncilOFTEN INDUSTRY ORGANIZATIONS collaborate on member access, and pricing for products, conferences and resources. Institute for Supply Manage-ment (ISM) has announced that it has reached an agreement with Houston-based Supply Chain Council (SCC) to offer member access and discounts to each organization’s training and certifi ca-tion programs for supply management.
Headquartered in Tempe, Ariz., ISM is a not-for-profi t membership as-sociation that leads and serves supply management professionals across the globe. SCC, a global not-for-profi t corporation with membership open to companies and organizations, is a leading authority on supply chain methodology, diagnostics and bench-marking based on the Supply Chain Operations Reference model (SCOR).
“This alliance is a great opportu-nity for both ISM and SCC members,” said SCC executive director Joseph Francis. “Supply chain professionals around the world can enhance their knowledge and earn professional certifi cations from both organizations, increasing their industry recognition and career opportunities.”
In an interview with Modern, Fran-cis explained that no single associa-tion can have all possible information for end-to-end supply chain optimiza-tion—the amount of information is staggering. The best way to provide
MMH1009_News.indd 12 9/7/10 2:17 PM
m m h . c o m MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 13
Leader of the Pack...The originator of high speed narrow belt sortation,TGW Systems has led the way in offering provenadvantages over conventional sortation for over 10 years
NBS fromTGW Systems
50% less install time60% less energy75% less noise
100% of the Value
www.tgw-group.com
TGW Systems (formerly TGW-Ermanco) is an integrated logistics solutions and material handling equipment provider. The Ermanco name lives onas the product family name for the conveying andsortation products manufactured in the US.
Our worldwide perspective and resources, and commitment to innovation, product development,and unparalleled customer service can help you today.
Proven track record – Over 700 installations around the world have made TGW’s Narrow Belt Sorter one of the most reliable sorters available.
Rugged durability – TGW’s NBS sorters operate in some of the harshest distribution environments in the world, earning customer’s admiration and competitor’s respect.
Application and layout fl exibility – The universal frame on TGW’s narrow belt sorter means you can use multiple divert options and easily add divert modules after installation for increased fl exibility.
Patented technology – Patented sortation technology in the TGW’s narrow belt sorter continues to lead the way in effective, energy effi cient, fl exible sortation.
10 08 NBS.indd 1 8/30/2010 3:40:08 PM
more value to ISM members is to form partnerships with other organi-zations with the depth and breadth of knowledge the members need. Therefore, partnering with ISM was key, Francis explained.
As a result of this partnership, SCC members are eligible for member pricing on ISM educational programs and testing for the Certifi ed Profes-sional in Supply Management (CPSM) professional credential as well as registration for the ISM 96th Annual International Supply Management Conference and Educational Exhibit.
ISM members have access to SCC’s SCORmark supply chain bench-marking database, and will receive member rates for SCOR Framework and Project workshops as well as global SCC events, including the up-coming Supply Chain World Europe to be held next month in Munich (October 24-26, 2010).
“This collaboration allows a range of products to be made available to members of both organizations,” said ISM CEO Paul Novak. “ISM members will enjoy access to the SCOR evalu-ation model and database, and SCC members now have a direct path to ISM’s educational opportunities as well as to our professional qualifi cation.”
Francis also told Modern that the long-term strategy is to continue to create partnerships with premier organizations in all segments of the end-to-end supply chain. He said that he’s in the process of working with other industry organizations, and it’s possible we may see another an-nouncement in the coming months.
The index the ISM uses to measure the manufacturing sector, or PMI, was 56.3% in August, which is up from 55.5% in July. Any reading that is 50 or better represents economic growth. August represents the 13th consecutive month that the PMI is more than 50, coupled with the over-
all economy on a growth track for 16 straight months.
“Manufacturing activity continued at a very positive rate in August as the PMI rose slightly when compared to July,” said Norbert J. Ore, chair of the ISM’s Manufacturing Business Survey Committee, in a statement. “In terms
ECONOMY
ISM manufacturing index inches up in AugustTHE INSTITUTE OF Supply Manage-ment reported that manufacturing activity in August was up slightly compared to July.
MMH1009_News.indd 13 9/7/10 2:17 PM
14 S E P T E M B E R 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
Carrier divides, separates delicate componentsIdeal for use in aerospace, manufacturing and dis-tribution, the Set Top box carrier protects delicate equipment—including converter boxes and cell phones—during storage, transit and installation. The reusable carriers include dividers to separate and protect each item to reduce damage while eliminat-ing corrugated waste and associated dust. Offered in four standard sizes, the boxes range from 14 x 15 x 10 to 27 x 15 x 18 inches. Optional accessories include handles and hand holes, covers, foam cushioning, label holders and placards, or electrostatic dissipative materials. The boxes may be specified in blue, black or white. Flexcon Container, 973-467-3323, www.flexcontainer.com. POWER TRANSMISSION-PART CONVEYING
PYRATHANE® BELTSWith Lifetime Warranty Against Manufacturing Defects
AN ISO 9001CERTIFIED COMPANY
CUSTOM MADE IN INCH, METRIC & O-RING SIZES
Very Clean in Operation • Eliminates Tensioning DevicesExceptional Abrasion Resistance
Round, Flat and Connectable Polyurethane Belts
Samples available at little or no cost • Colors Available
LINE SHAFTCONVEYOR BELTS
ORIGINAL EQUIPMENT & CONNECTABLE
Try ourPYRATHANE® BELTS
on your conveyor; they have become the standard of the industry.
www.pyramidbelts.com(P) 641.792.2405 • E-mail: [email protected]
522 North Ninth Avenue East, Newton, IA 50208
systems. The totes’ precise dimensional consistency ensures seamless extraction, conveying and inser-tion. With a 23.6 x 15.75 inch footprint, the totes are offered in two heights: 7.8 and 11.8 inches. Straight walls provide high cubic capacity, while the units’ rein-forced bottom prevents deflection. Both internal and external surfaces are smooth for easy cleaning, and the totes resist moisture, pests, mold and fungus. They are recyclable at the end of their service life. ORBIS, 888-307-2185, www.orbiscorporation.com.
Clear bins stack, hang and organize
Autoclavable up to 250ºF and resistant to extreme cold, Clear View Ultra stack and hang bins are manu-factured from heavy-duty, high-density tri-clear poly-propylene. Molded with front, back and side grips for easy handling, the bins organize inventory with multiple large label slots. A built-in rear hanger allows the bins to be hung from louvered panels or rails. For increased bin capacity and a quick view of contents, optional clear window inserts can be added. Twenty different sizes are offered from 5 x 4.125 x 3 to 18 x 16.5 x 11 inches. Quantum Storage Systems, 800-685-4665, www.quantumstorage.com.
Containers nest and stack
Nest and stack containers save space by stacking when full and nesting when empty. Offered in a variety of materials to accommodate a range of needs, the formu-lations include resistance to chemicals, electrostatic dis-charge and degreasers, autoclavability, flame retardance, and food handling. To facilitate movement, matched dol-lies with 3-inch diameter swivel casters may be specified. Dimensions range from 25.25 x 18 x 6 inches to 42.5 x 20 x 14.25 inches and include optional lids to protect contents from dirt and damage. Molded Fiber Glass Tray Co., 800-458-6050, www.mfgtray.com.
MMH100201_prod_ID.indd 41 2/9/2010 1:05:37 PM
of month-over-month improvement, the Production and Employment in-dexes experienced the greatest gains, while new orders continued to grow at a slightly slower rate. August repre-sents the 13th consecutive month of growth in U.S. manufacturing.”
Notable readings from the August report include: New Orders at 53.1 (down 0.4% from July); Production at 59.9 (up 2.9% from July); Employment at 60.4 (up 1.8% from July); Invento-ries at 51.4 (up 1.2% from July); and Price at 61.5 (up 4.0% from July).
In an interview with Modern, Ore said it was somewhat surprising to
see an uptick in the August PMI.“Much of the expectation was
that it would be down a couple of points based on the consensus from economists,” said Ore. “The reality is we have gone through a period where manufacturing has focused on productivity by lowering employment, lowering inventories, reducing invest-ment and shutting down capacity. Manufacturing was growing at two to three times the rate of the rest of the economy. This [PMI reading] is showing some additional strength in the manufacturing sector. We are still looking strong as far as imports and
exports are concerned, and auto-motive is holding up fairly well.”
Holding things back is a stalled out housing market, which would have kept manu-facturing at a pace ahead of the rest of the economy, said Ore. But, instead, he said manufactur-ing is going to slowly look like
the rest of the economy in terms of the rate of growth.
But that slowdown may not be around the corner just yet, as 11 of the 18 industries that report into PMI report-ed growth in August, which is refl ective of a manufacturing sector holding up fairly well during a diffi cult time.
“Some of the strength is coming from inventory replenishment, where companies have been very reluctant to replace inventory. They fi nally decided to take some cash they have built up and put it into some additional inven-tory, because they think things are
“ The reality is we have gone through a period where
manufacturing has focused on productivity by lowering
employment, lowering inventories, reducing investment and
shutting down capacity.”
— Norbert J. Ore, chair of the ISM’s Manufacturing Business Survey Committee
MMH1009_News.indd 14 9/7/10 2:17 PM
m m h . c o m MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 15
going to hold up OK,” said Ore.Another factor weighing on future
manufacturing expansion is the high level of unemployment in the U.S., which has a direct effect on consumer spending levels. And with consumers on the sidelines to such a large extent, a reduction in unemployment is the only thing likely to spur consumer spending.
But the prospects for this coming
fall from manufacturing are dim, said Ore, as an increase in manufacturing jobs is not likely to yield a huge num-ber. Instead, these jobs are going to have to originate from other sectors.
What’s more, the Department of Commerce’s recently revised down-ward second quarter GDP estimate of 1.6%—from 2.4%—portends more diffi cult times may be head.
Ore explained that the August
PMI of 56.3 equates to a 4.8% GDP.“If the overall economy is grow-
ing at 1.6%, that means manufactur-ing is growing three times faster than the rest of the economy,” he said. “That won’t continue unless the rest of the economy begins to take off. What we will see is manu-facturing begin to come down as it won’t continue to outpace the rest of the economy.”
Critical TopicsCritical topic areas help you learn more strategies and expand your knowledge. Each topic provides you with news, information, and resourc-es you need, every day. mmh.com/criticaltopics
Webcasts on-demandTrends in automation: The emerging world of robotic materials handlingIn this special webcast, Modern explores a range of exciting new robotic solutions now available and where they may fi t in your materials handling operations.mmh.com/webcasts
E-newslettersBegin or renew your free subscrip-tions to Modern’s e-newsletters. Keep up with Best Practices, Tech Trends, weekly news with This Week in Modern, or get our new Pallet and Packaging subscription.mmh.com/info/subscribe
NEWS NOW
Date: 08.30.10 Client: Rehrig Pacifi c Job #: 08312010 File Name: 0831_RPC_SlipSheet_Ad_MMH_sept10.indd Round:
Account Director: Niki Phan Designer: Revised By: ov Editor: Production: ov
Color: 4C/Process Trim: 7" × 4.625" Bleed: 0 Safety: 6.75"× 4.375" Fold: n/a
Publication(s): TBD Run Date(s): TBD
Approved By:
A FAMILY TRADITION OF GROWTH, SERVICE AND INNOVATION
Give Your Heavy Pallets the Slip.
Material Handling
Ship more product per load with Rehrig’s weight, space and cost saving Slip Sheets.
Rehrig co-extruded Slip Sheets are a cost-effective alternative to pallets. Impervious to moisture, high tensile strength plastic provides added tear resistance making them the perfect replacement for fi ber or corrugated sheets, as well.
Available in standard or custom sizes with a variety of surface textures and embossed patterns, Rehrig Slip Sheets provide superior slide resistance, keeping goods securely in place. Manufactured from nearly 100% recycled material, each sheet is also 100% recyclable.
Beyond the sale, Rehrig can help you develop a customized re-use or buy-back program, further lowering your average cost per trip.
Phone: (800) 546-4993 Email: [email protected] Web: www.rehrigpacific.com
©2
010
Re
hri
g P
acif
ic C
om
pan
y
0831_RPC_SlipSheet_Ad_MMH_sept10.indd 1 8/30/10 10:35:30 AM
MMH1009_News.indd 15 9/7/10 2:17 PM
Mark Twain once referred to golf as a good walk spoiled. The phrase could just as easily be applied to using the wrong pallet truck, or walkie
as they’re often known. The right walkie can make short work for the operator moving a pallet around the dock in a distribution center or across a parking lot out in the field. Choosing the wrong machine can make that job as frustrating as a bad round of golf.
Just what is a walkie? “In its most basic element, a walkie is the simplest motorized vehicle for moving pal-lets,” says Sue Rice, product manager of pallet trucks and stackers for The Raymond Corp. (800-235-7200, www.raymondcorp.com). “The only other alternative is a manually operated pallet jack.”
The name came about because the operator walks behind or beside the walkie instead of riding on it. Walk-ies are designed to handle one or two pallets, and loads of up to 8,000 pounds. They are also among the most common and flexible motorized pallet moving devices
available, says Rice. In the distribution center, a walkie is typically used to load or unload trucks, or to move pallets a short distance on the dock. Out in the field, they’re used by delivery drivers to unload pallets and move them across a parking lot. A grocer or big box re-tailer might use a walkie to move pallets from the stock room to the floor.
It sounds simple, but as Rice points out, there are a number of considerations that go into choosing the right pallet truck for your application. Three of the most impor-tant include:
What is the operating environment? A walkie used on the dock may need a spring-loaded caster for better stability going over the dock plate. A walkie destined for a freezer may need a cold storage environment pack-age. If your walkie will be used outside or in a food plant where the equipment is washed down with caustic chemi-cals, you may look for an under-carriage with stainless steel or nickel-plated pins.
How many hours a day will it operate? The two most common battery packs on walkies are wet cell batteries and gel batter-ies. A wet cell is less expensive than a gel, but a gel pack doesn’t require maintenance, like watering. A high-use operation may require a heavy-duty battery to get through a shift without a battery swap or charge. That’s a bigger upfront investment, but the battery may provide a longer life than alternative batteries.
Is it maneuverable? When it comes to moving pallets on a dock, most walkies will do the trick. If you’re loading and unload-ing a truck and making a 90-degree turn to cube out a trailer, you need a walkie capable of tight radius turns so the operator doesn’t have to inch the pallet out. “A walkie ca-pable of a true 180-degree pinwheel turn —that is a turn with one, smooth motion —is going to result in a more productive opera-tor and less pallet and product damage,” says Rice. M
A good walk, optimized Choosing the right pallet truck for your operation takes careful consideration.
16 S e p t e m b e r 2 0 1 0 Modern Materials Handling m m h . c o m
lift truck TIPS
By Bob Trebilcock, Executive Editor
MMH1009_LiftTruckTips.indd 16 9/7/10 3:04 PM
Visit asilockers.com to learn more.
Single Source Solution
Full Line of Lockers, Cubbies & Shelving
Fits All Your Storage Needs
• Lockers in plastic, phenolic and metal for use in schools, gymnasiums, fitness centers and manufacturing facilities
• Cubby Lockers and Shelves in solid plastic and phenolic for all your temporary storage uses
• Performance Plus Shelving in heavy-duty or standard styles, manufactured with 22-gauge powder coated steel
ASI STORAGE SOLUTIONS, INC.
ASI1158 ASISS MHPN ADrev.indd 1 6/10/10 8:10:43 AMMM1009_ads 17 9/7/10 9:08 AM
gets the job done 3PL leader DSC Logistics revved up productivity with
conventional processes driven by a labor management system.
By Bob Trebilcock, Executive Editor
Labor management
modern system report
18 S e p t e m b e r 2 0 1 0 / MoDern MaTeriaLS HanDLing mmh.com
MMH1009_SystemRptDCSLog.indd 18 9/7/10 2:34 PM
At Modern, we love auto-mation. There is a wow factor about high-speed sortation, automated stor-age and retrieval systems,
and automated guided vehicles. But we’ll let you in on a dirty little secret: The vast majority of warehouses, plants and DCs still get the job done with the same tools that have been serving the industry for the past 60 years, like pallet rack and lift trucks, all jazzed up with RF-driven picking.
Well, the same is true for third-party logistics providers (3PL). For a 3PL, it’s easier to bring in a new client when there’s no conveyor and sortation bolted to the ground, and it’s easier to scale labor up or down if demand spikes or contracts than it is to have idle automation. And, with 3PLs working on razor-thin margins, getting the most productivity out of those basic tools is important to win-ning new business and keeping exist-ing customers.
That’s why DSC Logistics began rolling out a labor management sys-tem (RedPrairie, 877-733-7724, www.redprairie.com) in 2005. Given the importance of labor to DSC’s business, the goals for the system were relatively simple, says Jim Chamberlain, direc-tor of industrial engineering. “As a 3PL provider, labor is the biggest com-ponent of our business,” Chamberlain says. “Our ability to manage that labor could be seen as a differentiator.”
Since the initial evaluation of labor
technology solutions, DSC imple-mented a labor management system (LMS) and incentive-based pay pro-grams in 22 of its 35 logistics cen-ters located across the United States, including a 575,000-square-foot food distribution facility in University Park, Ill. Roll outs will continue over the next few years. While the results have varied from site to site, the best improvement enabled a nearly 35% reduction in labor costs. “As a network, we’re averaging just north of 20% reduction in our vari-able labor costs,” says Chamberlain. “When you multiply that across our entire network, it’s huge.”
Choosing a vendor Founded in 1960 as a public warehous-ing company in Chicago, DSC has since expanded its services and geographical reach. Today, DSC has evolved into a full-line supply chain partner, providing strategic knowledge and management services, from distribution to transpor-tation to network modeling and design. The company operates 17 million square feet of distribution space across 35 distribution centers, with a presence in all of the major metropolitan areas. It manages an additional 11 facilities as the lead logistics partner in 4PL rela-tionships. While DSC does a limited amount of piece picking and parcel shipments for some customers, its sweet spot is case and full pallet handling and distribution.
Those are labor-intensive opera-tions and natural opportunities for
labor management, a technology Chamberlain was familiar with. “In my first job out of college, I imple-mented engineered labor stan-dards and labor management,” says Chamberlain. “Having seen the value it delivered there, it was something I wanted to see us do at DSC.”
In 2005, the DSC team was given the green light to create a short list of vendors that could meet DSC’s needs. They identified several goals
(Above) Jim Chamberlain, director of industrial engineering. (Left) DSC’s sweet spot is case and full pallet handling and distribution, two labor-intensive operations and perfect targets for labor management.
Photos by Mark Segal/Getty Images
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 19
MMH1009_SystemRptDCSLog.indd 19 9/7/10 2:34 PM
20 S E P T E M B E R 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
MODERN system report
for a labor management system: • Establish best practices that
could be implemented company wide: Developing a consistent best method to perform a task would lead to a safer work environment and would reduce turnover.
• Improve productivity: Getting better control over labor would lead not just to a more productive work-place; it would also create a more profitable business.
• Gain a competitive advantage: Better labor costs would allow DSC to deliver more value to its existing customers. With lower labor costs, DSC would also be more confident about the quotes it created for poten-tial customers. DSC identified four LMS industry
leaders. The due diligence included reference calls, site visits, live demon-strations and a conference room pilot using DSC’s data.
From the standpoint of functional-
ity, the final selection came down to the vendors’ ability to deliver on a number of points, including: • The LMS had to integrate with
DSC’s proprietary warehouse man-agement system (WMS).
• The system had to measure and report on all of an employee’s time, from when they signed into the sys-tem at the beginning of a shift until the end of a shift.
• The system needed to be dynamic, with the capability to change as DSC’s business changes.
• The vendor had to have a database of pre-determined time standards. “We did not want to recreate the wheel and do our own time and motion studies,” says Chamberlain. In the summer of 2005, DSC began
the work for a fall rollout at a pilot site.
Piloting labor management With a solution in hand, the next step was to pilot labor management to see
what kind of benefits the technology could deliver. “We decided to prove the concept in one facility and if it proved fruitful, we would move ahead through the network,” says Chamberlain.
Internally, DSC decided to run the pilot at a facility in McDonough, Ga.— its best managed site. The theory was that if they can deliver an improvement at the most productive site, the results will be better at marginal sites.
To prepare for the pilot, DSC had to create best practices and a template for each of the tasks that would be man-aged and an IT process to collect and feed the data about those job functions to the labor management system.
The 3PL decided to measure the tasks associated with receiving, putaway, pallet picking and case picking, replen-ishment, product moves and trailer loading. But rather than go live with all of those tasks at once, they decided to do them one function at a time, begin-ning with case picking since that is the
most labor intensive function. “We started by reviewing
our current process for case picking, and then worked with our vendor, our opera-tions managers, our engineer-ing group and our associates to re-engineer the task and develop the best practice,” says Chamberlain. In this case, that meant observing the complete cycle of a case pick, from the time an asso-ciate received an assignment from a supervisor and keyed into an RF-enabled scanner to the completion of the final pick and the delivery of a stretch-wrapped pallet to the shipping dock.
This was an opportu-nity to build ergonomic best practices into the preferred method, like bending at the knees and not at the waist, and to re-engineer the task. “One example was to have
DSC has rolled labor management out in 22 of its 35 locations, with an average 20% reduction in variable labor costs.
MMH1009_SystemRptDCSLog.indd 20 9/7/10 2:34 PM
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 21
GraphicCaption
associates park their pallet jack on the same side of the aisle as they are pick-ing,” says Chamberlain. “That allows other members of the team to pass by them unobstructed.”
Add up little changes like that, he says, “and it’s the difference between someone who is very smooth with their picking and someone for whom it is a struggle.”
Parallel to creating best practices, DSC developed a warehouse map that defines all of the locations in the build-ing, both horizontal and vertical, and measures the travel time to serve those locations on various pieces of equip-ment. “Since accountability and incen-tive-based pay were going to be tied to the labor management system, it was important that we were accurate to the inch,” says Chamberlain.
Change management and training were also important to the ramp up phase. DSC understood that some employees would feel threatened by the changes. “We wanted supervisors to understand that not everyone is going to ramp up at the same level, and we wanted to make sure that we were coaching on the floor so that associates were improving before we went live,” says Chamberlain. “We didn’t want to have people who weren’t going to be successful.”
The last step before the formal go-live was to turn on the system behind the scenes to get a baseline level of per-formance to measure from. If everyone was working at 75% of the standard, that would be the starting point. The goal was to get everyone to standard within six to seven weeks of going live.
In all, the prep work took about five months. By March 2006, DSC had flipped the switch to go live on all functions.
Lessons learned Once DSC went live on case pick-ing, the 3PL created a methodology for rolling out the solution across the other processes. “There is only so much change that people can handle at a
time,” says Chamberlain. “So, once we went live with case picking, we would develop a best practice for the next task, create a standard, roll it out and then ramp it up to get everyone working at that standard. We repeated that for each job function.”
About two months after going live with case picking, DSC put metrics in place to measure how the facility was performing against the baseline and, more importantly, how achievements in productivity translated into savings.
That information was used to develop an accountability policy and an incentive-based compensation pro-gram. With the system up and running, employees were expected to hit stan-dard over the course of a week, mean-ing that one day they may be up, one day they may be down, but over the course of a week they were on target.
If they didn’t hit standard during a week, however, management would compare how they had performed over the previous month to determine if it was an isolated week or a trend; if they hadn’t hit the standard consis-tently over a four-week period, DSC would do a six-month analysis. Only then would an employee get written up. “We wanted to take into consideration that an employee is going to have a bad week now and then without disciplin-ing them,” says Chamberlain. “But we also wanted to be clear that you can’t have multiple weeks below standard if you want to be part of the team.”
Within four months of rolling out the system, DSC implemented the incentive-based compensation pro-gram, which rewarded associates for working above the standard.
Throughout that first roll out, there were lessons to be learned and tweaks to be made. “We learned that communica-tion was critical,” says Chamberlain. “For instance, we initially thought that coach-ing and training associates who were working below standard would be com-mon sense, but it wasn’t. So, we added modules to train our supervisors so that coaching was a learning session and not a disciplinary session. Once we did that, coaching became a huge success.”
Initially, DSC included every worker in the warehouse on the incentive plan. The idea was to share the wealth with everyone, rather than risk alienating some associates. The result was that the pie was spread too thin, with incen-tives sometimes amounting to less than a dollar. “Now, we only include those people who are being measured by the labor management system, and the pro-gram really does incentivize people who can save us money,” says Chamberlain. He adds that the program is truly self-funding: The savings are greater than the amount of the payouts.
The benefit: The system delivered a 20% improvement in McDonough, a surprise given that it was a very well run facility to begin with. Since then, DSC has continued to roll out the program to successive sites.
“There are so many things that we have taken from this program,” says Chamberlain. “But the biggest is that it enabled us to deliver on the prom-ise that we have made to our custom-ers. In the past, we hoped we had a strong team that would deliver results. Now, we know that any proposal we put forward, we are going to be able to achieve that.” �
“ We wanted supervisors to understand that not everyone is going to ramp up at the same level, and we wanted to make sure that we were coaching on the floor so that
associates were improving before we went live.”
—Jim Chamberlain, director of industrial engineering
MMH1009_SystemRptDCSLog.indd 21 9/7/10 2:34 PM
22 S E P T E M B E R 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
Daniel Guidera
MODERN system report
for instance, is for an item that is in short supply at a location about to be picked.
Picking: Before initiating a pick, an order selector signs into an RF unit and chooses pallet picks or case picks. If the selector chooses pallet picks, the system will direct him to a pallet loca-tion (3); once there, the selector will scan the license plate bar code on the pallet and then scan a location tag in the staging area (2) on the dock. The pallet is now ready for shipment. If the selector chooses case picks, they will sign into an order and retrieve an empty pallet. The system will then direct the selector from one pick loca-tion to the next in the appropriate stor-age area (3) until all the cases for that
assignment have been picked to the pallet. Once the pallet is com-plete, the selector will take it
to be stretchwrapped and then scan it into a staging location (2)
on the dock. The pallet is now ready for shipment.
Shipping: In the staging area (2), associates scan a license plate bar code on a pallet. The warehouse manage-ment system then directs them to the right trailer (1) for delivery.
Managed laborDSC uses labor management to get the most from conventional systems.
DSC Logistics, University Park, Ill. Size: 575,000 square feetProducts: Food grade products Throughput: 17 million cases per yearShifts: 5 days, 2 shifts (Flexes to 3 shifts during peak business)Employees: 30 to 45 employees, depending on the season
System suppliers LABOR MANAGEMENT: RedPrairie, 877-733-7724, www.redprairie.com
WAREHOUSE MANAGEMENT SYSTEM: DSC Logistics, developed in-house
LIFT TRUCKS: Crown Equipment, 419-629-2311, www.crown.com
MOBILE COMPUTING AND BAR CODE SCANNING: LXE, 800-664-4593, www.lxe.com; Motorola, 800-722-6234, www.motorola.com; and Datalogic, 800-929-3221, www.scanning.datalogic.com
Thanks to its labor management sys-tem, DSC Logistics’ suburban Chicago distribution center, one of 35 in its network, is delivering big gains with conventional systems. For each of the processes associated with receiving, putaway, replenishment and picking and shipping, the labor management system (LMS) tracks the performance of associates against engineered labor standards. That information is used as part of an incentive payment system developed by DSC.
Receiving: To initiate the receiv-ing process (1), an associate signs into the RF system and inputs the number associated with an inbound order. The associate then either scans a license plate bar code on a pallet as it comes off the truck, or creates, applies and scans a license plate bar code if the pallet doesn’t already have one. The pallet is then scanned into a location in a staging lane (2). Once all of the pallets from that load have been staged, a dock associate
will do an inbound check to make sure that the quantity and quality of the loads match the purchase order. The inventory is now received in the sys-tem.
Putaway: The facility is a mix of floor and rack locations (3) deter-mined by the product stored in that loca-tion. After an associate scans the license plate bar code on a pallet, the WMS sys-tem will choose the appropriate location for storage. At the storage location, the associate will scan a location bar code label to confirm the putaway.
Replenishment: DSC also oper-ates a directed replenishment pro-gram. The WMS system prioritizes replenishment picks according to five levels of demand; a hot replenishment,
By Bob Trebilcock, Executive Editor
1
Receiving
3
4
Reserve storageand pallet picking
Palletizing shipping area
2 Receivingarea
8 Reshippingarea
Pick modules
5 Conveyor
6
7
Shipping9
Sortation
1Receiving and shipping
1 Receiving and shipping
2 Staging
2 Staging
3
Cooler70oF
3
Potatoes 3
Oil
3
Frosting 3
Spreads
3
Coffee
3
Peanut Butter
3
Case Pick
3
Flour
MMH1009_SystemRptDCSLog.indd 22 9/7/10 2:34 PM
25,000
20,000
15,000
10,000
5,000
05 minutes on 10 minutes on 20 minutes on SmarT-Bay
IS
PS
25,000
20,000
15,000
10,000
5,000
05
Time on in Minutes
Lam
p Li
fe in
Hou
rs
10 20 SmarT-Bay
25,000
20,000
15,000
10,000
5,000
05
Time on in Minutes
Lam
p Li
fe in
Hou
rs
10 20 SmarT-Bay
stonco_SmarTBay_ad_610b.indd 1 6/24/10 2:03 PMMM1009_ads 23 9/7/10 9:08 AM
24 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
By Bob trebilcock, Executive Editor
Pallet survey:What moves our readers
From wood to plastic to pallet pools, our readers tell us what’s important in pallets.
Pallets move the world. There’s more than a lit-tle truth to the slogan of the National Wooden Pallet & Container Association (NWPCA, 703-519-6104, www.palletcentral.com), the Washington, D.C.-based trade association that
represents the wooden pallet industry. Love them or hate them–and most pallet users have
mixed emotions–there’s a reason billions of pallets are floating around the supply chain. When it comes to get-ting a product from point A to point B, a pallet is probably involved. Build a better mousetrap and the world will probably shrug its shoulders; build a better pallet and we
Plus: Modern Materials Handling’s Pallet WebcastResults of the 2010 Pallet Usage and Trending StudyThursday, October 28 @ 2:00 p.m. ETRegister: www.mmh.com/palletsurvey
modern special report
2010 Pallet Survey
MMH1009_SpecialRptPallet.indd 24 9/7/10 2:20 PM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 25
modern special report
guarantee that manufacturers will beat a path to your door.
It’s been eight years since Modern’s last pallet survey. Since then, used pallets and pallet recycling programs have surged in popularity; there has been an expansion of pallet rental and pooling programs from providers like Peco and CHEP; and iGPS entered the market with the first rental pool of plastic pallets.
Now seemed like a good time to revisit the subject to see what the pal-let landscape looks like today. To find out, we surveyed subscribers of Modernas well as a sample of recipients of our e-newsletters. We received 673 quali-fied responses, defined as a reader who is employed at a location that actually uses pallets. The survey has a margin of error of ±3%. So, what moves our read-ers when it comes to pallets? Here’s what we learned.
The who, what and how of palletsWho is using pallets, what are they using, and how are they using them?
For starters, most respondents were involved in manufacturing, with a vari-ety of industries represented. Food manufacturing (15%) and consumer packaged goods (10%) were the larg-est verticals, but we also had responses from automotive, medical and health care, building materials and construc-tion, paper, chemicals, electronics, and aerospace, to name a few. Distributors represented less than 10% of the respondents.
The average reader is using an esti-mated 10,000 pallets at their loca-tion, or roughly 20 truckloads a year. However, 21% were using 30,000 or more pallets a year, or about five truck-loads a month; another 16% were using 10,000 to 29,999 a year.
One surprise: Although the economy has tanked, pallet usage has remained relatively constant over the last two years with 37% of readers saying that
their usage has not changed and 39% saying that it has increased. Only 24% said their pallet usage went down.
Despite those numbers, pallets are still primarily purchased at the local level and not the divisional or national level. Fifty-two percent of purchases are made by someone at the local level for just that location, typically a purchasing manager; another 17% are purchased at the local level for that and other loca-tions. Only 17% of respondents said that their pallets are purchased at the
corporate level (12%) or by a division-level purchasing department (5%).
Our readers are also getting double and triple duty from their pallets, with most readers (83%) using their pallets for warehousing and shipping. Only 6% used them strictly for warehousing and only 11% solely for shipping. But when we looked deeper we learned they aren’t just shipping those pallets to an end cus-tomer. Sixty-five percent of our readers said some of their pallets are shipped out to a trading partner, never to be seen
In general, how many times do you use a pallet?
Source: Peerless Media Research Group, 2010
More than 20 times
11-20 times
7-10 times
2-6 times
Once
15%
5%
10%
41%
29%
How are you using pallets?Within a facility
One-way between trading partners
Between company facilities
When exporting
Closed-loop between trading partners
Other
76%
65%
55%
38%
23%
5%
What percentage of pallets bought arecomposed of each type material?
Source: Peerless Media Research Group, 2010
Wood
Plastic
Wood composite
Cardboard/corrugated
Metal
Other
2%
23%
10%
8%
4%
1%
20% orless
5%
4%
3%
1%
*
0%
21%-50%
3%
1%
1%
*
*
0%
51%-70%
17%
1%
0%
0%
*
0%
71%-90%
66%
3%
1%
1%
1%
2%
91%-100%
% whopurchased
92%
33%
15%
10%
6%
3%
MMH1009_SpecialRptPallet.indd 25 9/7/10 2:21 PM
26 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
modern special report
2010 Pallet Survey
If wood pallets are in use...Are the pallets you
purchase new or used?
Source: Peerless Media Research Group, 2010
Used21%
New30%
Both49%
Which type of pallet do you primarily buy?
Used38%
New35%
Both27%
If wood pallets are in use...Which best describes how they are primarily maintained?
And, why do you use this resource?
Source: Peerless Media Research Group, 2010
Sort and repair is handled internally 27%
Use a third party or pallet recycler 63%
Other 10%
Least expensive/Most cost effective
Handled internally Use third party/recycler
More cost effective/Less costlythan handling in-house
Have the resources/Personnelto handle the maintenance
Don’t have the resources/Personnelto handle the maintenance
Easy to repair, handle Convenient
Quicker to fix Damaged pallets are removed/Recycled
Not in the pallet business. Just a user
Don’t have the space/Saves space
Quick/Readily available
Cleaner/Sanitary
Safer
No job too big for pallet providerCreative partnership replaces multiple vendors with a single service provider.
even after it made the switch to a pallet management service, Polar Beverages was so large that any single service provider was incapable of meeting its demand. The company partnered with a provider (IFCO Systems, 877-430-4326, www.ifco-us.com) that allowed it to exchange multiple pallet managers for a single, centralized service.
The company has grown tremen-dously during its 128-year history, now distributing 60 million cases annually from its two bottling plants and six DCs. For years, Polar was forced to manage five separate pallet suppliers for just two of those locations.
Beginning in June 2008, it entered into a partnership with a different sort of pallet management provider. In six months, Polar’s management felt ready to reduce the number of pallet sup-pliers to two, and finally in October of 2009, it began sourcing the majority of pallets through one provider.
“In the past, the idea of a single pallet vendor doing more than 90% of our volume seemed ludicrous,” says Jim Doyle, vice president of opera-tions for Polar Beverages. “We had resigned ourselves to managing a handful of vendors and dealing with all the issues that came with it.”
The collaborative supply partnership resulted in consistently high quality, lower costs, and minimal program management by Polar. Almost imme-diately, the partnership reduced costs by nearly eliminating program admin-istration and minimizing downtime due to pallet failures. Because delivery modifications are made in less than 24 hours, the company now avoids pallet inventory buildup and shortages.
Management from the company and the provider meets regularly to brain-storm creative ways to drive costs out and add value to Polar’s supply chain. The two have developed models for vendor return programs, on-site opera-tions, and pallet repair programs. This partnership and exchange of ideas is the basis for the continued success and growth of the relationship.
—Josh Bond, contributing editor
MMH1009_SpecialRptPallet.indd 26 9/7/10 2:21 PM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 27
again, but other pallets are used to ship product between facilities (55%), as part of a closed loop between trading partners (23%), and for export purposes (38%). Seventy-six percent are using them within their facility for processes like warehousing or work-in-process.
Those multiple uses explain why readers said they are using their pallets an average of 7.5 times each. Only 29% said they get just one use out of a pallet. Forty-one percent, on the other hand, get between two and six uses from each pallet and 15% are getting more than 20 uses from each pallet.
Wood or plastic, new or usedThe question at the checkout line at the grocery store is paper or plastic? When it comes to pallets, there are two questions: Are your pallets still made from wood or another material, and are you using new pallets or used pallets?
Wood still dominates the pallet mar-ket: 92% of the respondents purchase wood pallets and on average 84% of the pallets being used are made from wood. That comes as no surprise. What did catch our attention is that for many users, it’s not an either/or question. Instead, a good number are using wood plus other types of pallets.
For instance, 33% of respondents are using some plastic pallets, 15% are using some type of wood composite pallet, and 10% are using corrugated/cardboard pallets for some applications.
Still, these are niche products, with plastic pallets accounting for about 8% of the pallet usage by our readers, virtually unchanged from 2002. Wood composite (3%), cardboard/corrugated (2%) and metal pallets (1%) combined accounted for just 6% of the pallet usage.
While wood and plastic pallet users look for the same characteris-tics in their pallets, there are some differences: more than 90% of users of both wood and plastic pallets put a premium on the strength and the price of the pallet, but nearly 85% of plastic pallet users value reusabil-ity compared to 71% of wood pallet users. That reflects the higher cost associated with plastic pallets.
What’s driving the decision to use one material over another? When it comes to wood, it’s a matter of avail-ability and price. “Wood is available and probably the most economical,” said one respondent. “It is difficult get-ting our pallets back once they go out with our product (which makes plastic uneconomical).”
But users who can control their pal-let assets and can afford to take a long-term view of the asset are taking a harder look at plastic. “We use plastic because it lasts longer and is more durable,” said a respondent. “Fewer repairs are needed to keep them in service.”
The good news for manufacturers of alternative pallets is that readers would
modern special report2010 Pallet Survey
Which best describes your reasons for using a pallet rental or pallet retrieval/recovery system?
Source: Peerless Media Research Group, 2010
Lower cost
Estimates disposal issues
Customer requirements
Convenience/Ease of use
Quality of pallets
Reliability
Allows us to concentrate on our business
Other
48%
44%
39%
35%
29%
28%
23%
8%
Pallet partnership cuts headaches for national manufacturerOn-line portal leads to greater visibility of available inventory and fewer new pallet purchases.
Managing pallets is a difficult chore for any company, especially one with 11 manufacturing plants across the country. For a leading container manu-facturer, outsourcing its pallet recov-ery and repair operations (Millwood, 330-393-4400, www.millwoodinc.com) produced substantial savings and sig-nificantly improved customer relations.
Prior to outsourcing the operations, the manufacturer handled the receipt, sortation, repair and re-distribution of more than one million pallets per year with its own personnel. When one of the manufacturer’s plants needed a load of pallets, personnel would check pallet reserves before ordering new pallets. However, since the plants only took a physical inventory once a month, the information was often out of date and inaccurate, leading to billing dis-putes and unnecessary purchases.
A key feature of the pallet manage-ment program is an on-line portal that tracks the status and location of pal-lets. The information in the system is updated daily, or whenever pallets are repaired or shipped out, giving the manufacturer a much more accurate view of its inventory. In addition, the pallet management company handles all of the pallet repair operations at the manufacturer’s plant locations.
The manufacturer now has visibility into its pallet inventory across its net-work on a daily basis. The availability of timely data has reduced billing dis-putes and unnecessary purchases.
—Josh Bond, contributing editor
Modern Materials Handling’s Pallet WebcastResults of the 2010 Pallet Usage and Trending StudyThursday, October 28 at 2:00 p.m. ETRegister:
www.mmh.com/palletsurvey
MMH1009_SpecialRptPallet.indd 27 9/7/10 2:21 PM
28 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
consider them in the future: 23% said they would consider plastic, 12% would consider wood composite pallets, 11% would consider cardboard/corrugated, and 7% would consider metal.
While Modern wasn’t surprised to see that wood is still the most popular choice of materials, we were surprised at how used pallets have come to dominate the
market in recent years. While no one has hard data, Bruce Scholnick, president of the NWPCA, estimates that used pallets now account for about 70% of the wood pallet market. In our survey, only 30% of our readers said they only purchase new pallets; 49% said they purchase both new and used, and 21% said they only pur-chase used pallets. As Scholnick points
modern special report
2010 Pallet Survey
What do you believe will be the primary reasons for future changes regarding your pallet usage?Reason % What the materials handling pros say
Business activity level
31% Business growth, demand, economy, increased sales, increase in production, etc.
Cost 21% Cost, savings and price. Cost savings. “Disposal costs are too high.”
Customer requirements
15% “Track and trace requirements of some customers may require us to use pallets with RFID tags embedded.”
Regulations 9% “Industry no longer allows the use of chemically treated pallets. All pallets must be heat treated as of September 2010.”
“Restrictions on wood in many countries will force the use of more plastic pallets.”
Composition of pallet (i.e. plastic, wood, composite, etc.)
9% “I foresee that due to customer requests, (big box retailers) we will continue to use more pooled pallets than we do today. I expect wooden pooled pallet usage to be replaced more and more with pooled plastic pallets. Reasons: improved product-safety, load efficiency and reduced costing.”
Green 5% “Reusable pallets for environmental reasons.”
Durability 5% “Better design for multi-use and reusable.”
“Long-term durability improvements with skids used for warehousing functions. Move to plastic skids if they came into pricing alignments with wood.”
Availability 3% “Other options may become a better supply from an availability or cost standpoint in the future.”
Recycling 3% “New materials and reuse potential.”
Sanitary issues 3% Food safety. “Sanitary risks of wood in meat industry, ergonomics.”
Design of pallets 3% “Change in type of products made and the size of the pallet needed to match the equipment that is being shipped on them.”
“Renovations or changes in pallet racking design.”
Heat-treated pallets
1% “The need for more heat-treated pallets for international shipping.”
Miscellaneous 8% “Better management through system, national purchasing program and coordination throughout our internal supply chain network.”
Source: Peerless Media Research Group, 2010
Modern Materials Handling’s Pallet WebcastResults of the 2010 Pallet Usage and Trending StudyThursday, October 28 at 2:00 p.m. ET
Register: www.mmh.com/palletsurvey
MMH1009_SpecialRptPallet.indd 28 9/7/10 2:21 PM
out, in the not so distant past, most users would not have even considered used pallets.
Expect the trend toward used pallets to continue: 80% of respon-dents said they are using the same number or more used pallets than they were two years ago, and 84% expect to use the same or more used pallets in the next two years. Eighty-nine percent expect their use of all pal-lets to remain the same or increase.
Get into the pool One of the selling points of used pal-lets is sustainability: 57% of readers said their company’s overall “green strategy” was a consideration when it came to acquiring pallets. Keeping those used pallets in service calls for a pallet management and pallet repair program.
Most of our readers are turning to a third party to handle pallet manage-ment for them. Only 27% said they are sorting and repairing their pallets in house; the others are using a pallet management or pallet recycling com-pany to collect, sort, repair and redis-tribute a pool of pallets for a company. The reason: As with any other 3PL service, readers say they don’t have the resources or personnel to get the job done in house, and it’s more economi-cal to use a 3PL.
For those who don’t want to man-age their own pool of pallets, the alternative is to participate in one of the pallet pools operated by CHEP and Peco or plastic pallet pools man-aged by iGPS. In this model, users rent the pallet on a per-trip basis, while the pool operator collects, sorts and repairs the pallets.
Pallet pooling is still a niche in the market, but one with room to grow:
Only 33% of our readers said they were currently participating in some kind of pallet pool, and of those, only 34% were renting their pallets from one of the pallet pool providers. The remainder
are managing their own pools.
Still, nearly 60% of the respondents said they would con-sider participating in a pallet retrieval or third party pallet rental system in the future. While the lower cost and con-venience are driving factors, 39% also said that customer requirements were a deciding factor. As one reader put it: “Because of requests from our big box cus-
tomers, we will continue to use more pooled pallets than we do today. And, I expect wooden pooled pallet usage to be replaced more and more with pooled plastic pallets.” M
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 29
Automatic turntable stretch wrapperThe economical WCA-Smart auto-matic turntable stretch wrapper combines two of the supplier’s previ-
ous products into one line, standardizing tower and carriage for a reduction
in lead time and faster
product delivery.
The new unit offers enclosed carriage chains, an increase in stan-dard wrap height to 80 inches, and optional wrap heights up to 116 inches. An ergonomically friendly film loading carriage is mounted on the side for easy loading. The system runs at a standard 12 revolu-tions per minute, up to 22 optional-ly, and has a spring loaded carriage gate, split base for easy handling,
42 M A R C H 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
Motorized Storage & Retrieval Solutions
Space Saving Ver cal Storage • Bar Stock • Spooled Products • Tire Storage
• Print Cylinders • Rolled Goods • Parts Storage
“Storage & Retrieval Solutions Since 1986”
Contact Us Toll Free at 1-800-210-0141 or visit us online at www.vidir.com
AGV navigates tight spacesTransporting materials through tight, narrow aisles is the Tite-Space BST AGV tugger, with a min-imum turning radius of 17.5 inches. The low-profile tugger includes a drive motor, 24-Volt DC power sup-ply, and guidance sensors. It travels in a single direction along a mag-netic tape guide path at speeds up to 164 feet per minute. The vehicle glides under stationary pushcarts,
Chain hoists runs 1,900 hours between servicingOffering extended service life up to 1,900 hours, the DC-Pro chain hoist runs longer between service inter-vals and general overhauls. Many components are maintenance-free for up to 10 years. Safety features include brakes that do not require adjustment and clutches that pro-vide protection against overload and slippage. The hoist is offered in 275 to 11,000 pound capacities with two different control configurations: a pendant or the supplier’s control pendant for one-handed operation. Demag Cranes & Components, 800-321-6560 www.demag-us.com, Booth 2618.
NA 2010 Cleveland
and three-year unlimited cycle war-ranty. Wulftec/MJ Maillis, 877-985-3832, www.wulftec.com, Booth 1209.
engaging them by extending a catch pin into the cart’s connection interface, then conveying them to load/unload points further along the path. Creform, 800-839-8823, www.creform.com, Booths 1734 & 1834.
Collect data in harsh environmentsThe MX9, MX9CS, and MX9HL ultra-rugged handheld computers offer data collection with an outdoor display with multiple scanning and imaging options. Selections include back-lit keypads, built-in GPS position-al location feature, and 802.11 a/b/g, WWAN and Bluetooth communica-tions. The MX9 computer includes an IP67 rating and rugged packag-ing. With low-temp batteries and built-in heater control, the MX9CS is ideal for cold storage use. The MX9HL complies with Class 1 Div. 2 hazardous location environments. LXE, 800-664-4593, www.lxe.com, Booth 1432.
MMH100301ShowProds_ID.indd 42 3/10/2010 3:42:18 PM
modern special report2010 Pallet Survey
What is your company’s potential for participating in a pallet retrevial/recoverysystem or in a third-party pallet rental system?
Source: Peerless Media Research Group, 2010
Might consider37%
Would not consider37%
Don’t know whata pallet retrival/
recovery system is7%
Would stronglyconsider
7%
Would consider15%
MMH1009_SpecialRptPallet.indd 29 9/7/10 2:21 PM
30 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
Deck 2 lines
modern productivity solution
some retailers bank on steep markdowns to move merchandise. Christopher & Banks, a retailer
of specialty women’s apparel with 789 stores in 46 states, strives to keep customers coming back with frequent additions of new clothing on the racks. Faced with aging equipment, a paper picking sys-tem and an inefficient work flow, maintaining a steady flow of product had become a challenge. The Plymouth, Minn.-based company determined that upgrades were needed to continue to support just-in-time delivery and direct-to-consumer fulfillment operations.
The 200,000-square-foot DC was retrofitted with a semi-automated fulfillment process that eliminates manual lifting and floor clutter, and pro-vides a safer, quieter solution.
“This DC has been transformed from a dark, inefficient building into a much more vibrant workplace,” says Mike Tripp, vice president of supply chain and logistics. “By the end of the project we had in our possession a cleaner and more efficient operation that increased associ-ate safety, productivity and morale, along with an
impressive return on investment.Once individual store orders are complete, car-
tons are now pushed onto a central take-away belt conveyor to a two-level motor driven roller conveyor (Intelligrated, 877-315-3400, www.intelligrated.com). Featuring run-on-demand independent zones and zero-pressure accumulation, this conveyor reduces wear and energy usage, eliminates product jams and allows for the entire length of the conveyor to be filled. Order picking continues independently of ship-ping activity. Cartons continue to a central merge and sorter where they are routed to one of three shipping lanes. On each shipping lane, cartons are automati-cally sealed, then weighed and labeled at a worksta-tion and conveyed directly into a trailer at the shipping dock doors.
The system achieved an ROI in 10 months. The company increased productivity in the ship-ping department by 160% and reduced labor requirements. They improved turn-time by 50%, increased accuracy to 99.9%, increased shipping productivity by 160%, and reduced noise and ergo-nomic concerns. M
By author name, Author Title
A perfecT fiT for cloThing reTAiler
Motorized driven roller conveyor is tailored to suit the needs of high-end apparel retailer Christopher & Banks.
By noël P. Bodenburg, Executive Managing Editor
MMH1009_ProdSolutions.indd 30 9/7/10 11:12 AM
Best made cutting tools in the world.®
Compact Self-Retracting Safety Knife (SK-7) Designed with a lighter-weight, high-impact handle, this handy cutter fits all hand sizes. Also features a low-positioned, flush blade slide to reduce blade exposure when carried inside a pocket. For right- and left-handed users.
Heavy-Duty Automatic Self-Retracting Safety Knife (SK-8) Designed for extra protection, this knife features a spring- loaded blade that automatically retracts the instant it loses contact with the material being cut, even when the blade slide is engaged, and cannot be overridden. Made with a metal tip for durability, it also features an anti-slip cushion grip handle with a large blade slide for easy use. For right- and left-handed users.
Open up New Opportunities with OLFA Premium Cutters.OLFA® cutters feature first-class craftsmanship for maximum performance, and high-quality carbon tool steel blades
that are specially honed for superior sharpness and edge retention - for safe, easy cutting. Handles so tough, they are
guaranteed forever.*
Ask about our full line of cutters that provide solutions for all your cutting needs...first class, all the way.
C a l l 8 0 0 . 9 6 2 . O L F A , v i s i t w w w. o l f a . c o m o r c o n t a c t y o u r O L F A R e p r e s e n t a t i v e n o w.*Go to www.olfa.com for handle satisfaction or replacement policy. OLFA is a registered trademark of OLFA Corporation Japan, used under license by World Kitchen, LLC. ©2010 World Kitchen, LLC.
Heavy-Duty Ratchet-Lock Carton Cutter (CL)
Innovative features and design include an adjustable
depth gauge to reduce damaging goods, and a
convenient built- in staple remover. Also features a
one-of-a-kind, sturdy, flat cutting guide that provides
additional stability and a
perfect 90 degree edge
for optimal cutting. Comes
with an OLFA LB snap-off
blade with 8 cutting edges
per blade for prolonged
blade-life and usage.
MM1005 pp04 OLFA.indd 1 5/14/10 9:22 AMMM1009_ads 31 9/7/10 9:08 AM
Advancements in pick-to-light technology and a variety of new applications have prompted a growth in use and productivity.
THE
(PICKING) LOADBy Sara Pearson Specter, Editor at Large
32 S E P T E M B E R 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
MMH1009_EquipRptPicktoLight.indd 32 9/7/10 3:07 PM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 33
As recently as 15 years ago, when pick-to-light systems were gain-ing wider acceptance, a common application might include some 20,000 light mod-
ules spread throughout a warehouse. Such systems were only affordable for Fortune 100 companies and large cata-logers, who installed modules without regard for walking distances and pick velocities.
In the past half-dozen years or so, however, warehouse managers have gained a better grasp on light-directed picking technology. Improvements in the hardware—coupled with a better understanding of how an installation of as few as 300 units can make a dra-matic difference in picking efficiency and accuracy—have made pick-to-light systems accessible to considerably smaller facilities.
“When it was a brand new technol-ogy, pick to light was applied improp-erly by being applied to everything. No matter whether it was a fast-mover, slow-mover or medium-mover—it was applied to every-mover,” recalls Colman Roche, vice president of sales for KardexRemstar (800-639-5805, www.kardexremstar.com). “Now, users are analyzing their inventory and requirements to determine the most appropriate use of pick to light for their application.”
By leveraging lights in conjunction with other picking and handling equip-ment, as well as incorporating them in different handling processes, users are gaining productivity.
Multi-modal use on the risePerhaps you’ve heard the rumor that voice-directed picking is replacing light-directed picking? In a sense that’s true, says Chris Castaldi, vice president of Client Development for AL Systems (973-586-8500, www.alsystems.com).
“It’s important to use pick to light appropriately when most facilities find that their orders typically exceed the 80/20 rule. It’s often more like 90% of the orders come from 10% of the avail-able SKUs,” he cautions. “The question should no longer be: ‘Should we get lights or should we get voice?’ Instead, it should be: ‘What about using the two of them together?’ with lights for the fast-moving, split-case items and voice for everything else.”
Because it’s a visual system, pick to light delivers more efficient, more pro-ductive picking than voice, agrees Ken Ruehrdanz, warehousing and distribu-tion market manager at Dematic (877-725-7500, www.dematic.com).
“Voice is a very good technology, but the interaction is not as fast since the user has to listen and talk back and forth. It’s the difference between the speed of light and the speed of sound,” Ruehrdanz says. “Additionally, lights are easier to train on than voice, mak-ing it ideal for use by seasonal workers, and it avoids any language barriers.”
The trend toward multi-modal picking has turned many pick-to-light suppliers into picking solution pro-viders—who offer a complete pack-age combining pick to light, voice and hand-held RF devices to run on a single, unified warehouse control sys-
tem (WCS) that communicates with the warehouse management system (WMS).
“Vendors are also providing users with the ability to pull more informa-tion directly from the pick-to-light sys-tem. There’s been an increased empha-sis on dashboards and remote reporting for specific monitoring of picking pro-ductivity and enhanced labor track-ing,” says Jim Bast, general manager of Lightning Pick Technologies (262-250-2100, www.lightningpick.com). “They go back to the WMS to get broader information, but if they want to focus specifically on picking, now they have the tools to see that.”
Dashboard reporting directly from the pick-to-light system can be moni-tored within a single facility, or com-pared to data from other facilities in the network for an enterprise-level view of picking metrics.
Advancements in offeringsPick-to-light hardware itself has evolved. While its functionality remains the same—an indicator light illuminates, corresponding numbers display pick quantity, and the picker
Because it’s a visual system, pick to light delivers efficient, productive picking. additionally, by avoiding any language barriers lights are easier to train on than voice, making it ideal for use by seasonal workers.
modern equipment report
Use of lights with vertical lift modules (VlMs) and vertical
carousels was non-existent as recently as seven years ago, but
85% of today’s units include lights for pick verifications.
MMH1009_EquipRptPicktoLight.indd 33 9/7/10 11:09 AM
34 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
pushes a button to confirm the pick—the technology’s capabilities have increased.
“Now, there’s more intelligence put into the displays. Instead of four- to 12-digit displays, there’s free flow-ing message centers that say things like ‘pick’ or ‘put’ for replenishment orders,” says KardexRemstar’s Roche. The capacity to send additional com-munications to pickers means the ability to describe the item or its posi-tion, useful when more than one SKU is stored in a single position for better density.
Most light modules on the mar-ket offer two colors of indicators (red and green) typically intended to direct pickers to SKUs stored in locations either above or below the unit. Taking this a step further, some suppliers have added more colors—up to seven in certain instances—to enable over-lapping of picking zones, says Lance Reese, technical solutions director for Intelligrated (866-936-7300, www.intelligrated.com).
“Multicolored indicator lights allow up to four order fillers to work in a single zone for simultaneous filling of multiple orders, or to direct opera-tors to perform value-added services,” Reese says. “Each picker is assigned a distinct color; should a picker be color-blind, they can still identify their specific light because the sequence is in the same order and in the same location on every device.”
The ability to overlap zones offers key gains in productivity and flex-ibility, adds Reese. “That technology enables users to move order fillers around pick zones so they can adjust to demand peaks throughout the day. You can increase your system’s throughput simply by adding a lot more pickers to accommodate the increase in picking volume,” he says.
Changing applicationsWhile pick-to-light modules have always been used with static shelv-ing and horizontal carousels, they’re
increasingly being applied to other materials handling equipment, auto-mated and otherwise.
A-frame replenishment is an ideal use for pick-to-light technology, says Lightning Pick’s Bast. “When you’re using A-frames to pick your fastest movers, they pick really fast, but they also run out of product really fast. Pick to light is a great solution to that challenge.”
Use of lights with vertical lift mod-ules (VLMs) and vertical carousels was non-existent as recently as seven years ago, says KardexRemstar’s Roche. “Today, 85% of them use lights for pick verifications,” he says.
Similar to these goods-to-person automated systems, more users are applying light-directed picking in goods-to-person workstations. In this setup, Dematic’s Ruehrdanz explains, the item to be picked is stored in a donor tote that’s staged in a storage system—such as mini-load automated storage and retrieval system (AS/RS)
or a carousel. When needed, the tote of product is delivered to the worksta-tion, typically by conveyor.
At the workstation, the operator is surrounded by up to 12 lights, each associated with an order tote. A WMS batches orders by common SKU, and communicates to the WCS, which lights to illuminate and indicate the quantity of product for each order tote. In a “one-to-many” picking process, the picker does a “put,” placing the appro-priate items from the donor tote into their respective order totes.
The benefits of this approach are four-fold, says Ruehrdanz: “The opera-tor does not have to search for the item in the warehouse, paper has been elim-inated, only a few displays are required, and the whole pick is much faster.”
Similarly, for retail replenishment, more retailers are picking directly for individual stores, or are asking suppli-ers to do so for them—eliminating the handling step of sorting received items at the retailer’s DC.
modern equipment report
although the typical pick-to-light project size has dropped from 20,000 light units to installations more in the range of 300 to 1,000 modules, developments in both light-directed picking technology and its application point to an increase in installations.
MMH1009_EquipRptPicktoLight.indd 34 9/7/10 11:09 AM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 35
“Instead of every SKU having a light, every one of my retail stores gets a light, so operators scan the units and put to the orders,” says AL System’s
Castaldi. “It’s much faster, requires fewer lights, and yields much higher productivity, as well as ensuring a high level of accuracy.”
Although the typical installation size has dropped from the heyday of 20,000 light projects to more in the range of 300 to 1,000 modules, the develop-ments both in light-directed picking technology and its applications point to an increase in installations, confirms Lightning Pick’s Bast.
“The use of pick to light is definitely growing,” he concludes. “We’ve found that nearly 50% of users later add on. After starting with a smaller system, they find that success breeds success—once they’ve used the technology, they see the benefits justify an additional investment.” M
modern equipment report
Pick-to-light systems are best suited for picking of fast-moving, split case items.
Woolrich, the oldest continuously running apparel manufacturer in the United States, offers men’s and women’s sportswear and outerwear, woolen fabrics, blankets and home furnishings. As the company expanded its offerings, more SKUs had to be handled at its distribution center in Jersey Shore, Pa. Further complicating matters, the DC received big surges of new customer orders after the release of every new catalog.
“During peak season, our existing pick module and RF picking method would definitely get stretched beyond capacity,” says Conrad Schlesinger, manager of distribution for Woolrich. “The walk time and speed of that approach only left one option to meet the demand: Add more labor.”
To address that challenge, the com-pany first installed additional three-story pick modules with carton flow rack for a more efficient walk layout. Next, Woolrich updated its paperless picking technology from an RF-based approach to a new pick-to-light sys-tem (Lightning Pick Technologies, 262-250-2100, www.lightningpick.com).
Light modules were installed across all product locations throughout each floor of the pick modules.
To further enhance the facility’s slotting configuration while addressing Woolrich’s return-on-investment goals, Schlesinger’s team elected to install dual-module lights. This functionality permits one unit to direct picks for two product locations—one above the light and one below. For accuracy, the modules feature two distinct up/down indicators, each with a unique quantity display. To eliminate confusion, the up/down lights and corre-sponding quantity dis-plays are color coded, preventing mispicks.
“Our goal was to add additional pick modules, a new pick-to-light system and other warehouse automa-tion before our next catalog release,” recalls Schlesinger.
In addition the project being com-pleted on time, the new light-directed technology also delivered efficiency gains, he says. Pick rates were ampli-fied thereby making order cycle times shorter and increasing overall throughput.
Further, Schlesinger says, the pick-to-light system’s intrinsic simplicity has also had a strong impact on getting new employees up to productive per-formance levels quickly.
Catalog retailer’s pick-to-light system handles order spikes, increases efficiency
MMH1009_EquipRptPicktoLight.indd 35 9/7/10 11:09 AM
36 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
By lorie King rogers, Associate Editor
modern best practices
reverselogistics
the best practice in reverse logistics is to prevent product from coming back in the first place. since that’s unlikely, it’s important to understand why goods are returned and learn how to capture the greatest value from the process.
Learn from your returns
in a busy returns operation, workers scan and check in items, place them into “returns” totes and load them onto conveyors that route them to the proper put location.
MMH1009_Best_Reverse.indd 36 9/7/10 2:18 PM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 37
modern best practices
Reverse + logistics = reverse logistics. Sounds like a basic equation, one that would imply that reverse logis-tics is simply the supply
chain moving backward. But if you ask Shibesh Banerji, principal consultant at Tompkins Associates (800-789-1257, www.tompkinsinc.com), he will tell you that the process isn’t so simple. In fact, Banerji and his colleagues prefer the term service supply chain to represent the scope of reverse logistics.
The service supply chain starts the moment a product is sold to a consumer and lasts right up until the end of its useful life, explains Banerji. “There was a time when we would receive a
returned item and dump it. Nobody really cared what happened afterward. An OEM or retailer would wash their hands of the item and move forward.”
Not anymore. That practice is chang-ing, and there’s a lot more focus on mov-ing backward. Suppliers and retailers are paying attention to returns whether they like it or not. “Reverse logistics is like a diet—you know it’s good for you, but it’s hard,” says Don Derewecki, assistant vice president at TranSystems (201-368-0400, www.transystems.com).
To successfully handle reverse logis-tics, first a company should ask a num-ber of important questions: Are returns part of our core competency? Are we properly equipped to handle returns?
And, what’s the financial impact of han-dling the product, again?
Know the costStart at the top with the bottom line. “Make sure systems are in place to determine costs,” says James Stock, a professor of marketing at the University of South Florida in Tampa (USF, 813-974-2011, www.usf.edu). “You can’t make valid decisions without knowing the numbers. You need accounting and IT systems in place to calculate the cost benefits of retaining or outsourcing your reverse logistics operation.”
But whether you handle returns in house or outsource, Banerji says, your company’s decision should not be
after returns have been received, scanned and entered back into the system, an aerial put system sends them back to designated storage locations, where they are available to be picked for a future order.
MMH1009_Best_Reverse.indd 37 9/7/10 2:18 PM
38 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
based on a short term financial gain, but rather with the intent of developing long term sus-tainable and consistent qual-ity solutions that benefit your customers.
De-risk the processWhen a product comes back, regardless of the reason, the return suggests an unhappy cus-tomer. “Many companies have built their customer base from a good returns process and a fair return policy,” says Derewecki. “So, in the end, the customer feels confident that they won’t get stuck with something they don’t want or doesn’t work.”
Make the returns process quick and easy. “The biggest reason people don’t shop online is the pain and suffering of the returns process,” says Brian Kinsella, senior product man-ager for Manhattan Associates (770-955-7070, www.manh.com). “More progressive retail-ers are de-risking the Internet shopping experience by giving the end user the tools they need to return an item up front. In the long run, this saves time and builds customer loyalty.”
These tools include return shipping labels included in the package or online instructions that begin the returns process. Either way, the data captured sends an alert that product is on its way back. But on its way back where? That depends.
Find the right 3PLIf handling returns is not part of your operation’s core competency, hand it over to a third-party logistics (3PL) provider. Antony Francis, president of ATC Logistics & Electronics (800-466-4202, www.atcle.com) says it’s impor-tant to find the right fit for your needs and products.
When searching for the right 3PL,
he says to look for following: teamwork between your company and the 3PL; a solid understanding of the issues to be addressed and an in-depth knowledge of industry best practices across the entire supply chain; current technol-ogy and the ability to customize it to your needs; speed of reaction; a sys-tem that incorporates ISO standards, lean, Six Sigma and/or 5S; history of customer service excellence; commit-ment to sustainability.
“This model fits all verticals,” says Francis. “Whether high or low vol-ume, high or low tech, each of these attributes will be present to differing degrees.”
In addition to hands-on exper-tise that comes from years of similar operations, a good 3PL will keep its eyes on the 24/7 information highway,
says Bruce Mantz, execu-tive vice president of ADS Logistic Services (877-237-1330, www.adslp.com). “We constantly monitor current events, news, and weather because somewhere down the road there may be a return logis-tics requirement that’s an outgrowth of that event. It’s also important to watch news and events overseas because the impact will ultimately ripple onto our shores,” he says.
Increase your visibilityAn IT platform focused on reverse logistics is impor-tant for operations that handle their own returns. “Software is an important tool in the reverse pro-cess,” says Pat Anderson, senior solutions architect of TAKE Supply Chain (512-799-0741, www.takesup-plychain.com). “It provides visibility into the entire sup-ply chain, expedites the pro-cess, and collects the data
that can identify challenges and lead to improvements.”
Visibility also enables planning and flexibility. “The key to software is con-figuration not customization,” says Scott Zickert, product manager of dis-tribution products for RedPrairie (877-733-7724, www.redprairie.com). “You shouldn’t have to ask your software pro-vider to make changes, you should have the capability to do it yourself.”
This is especially important to oper-ations with seasonal changes. Zickert says, “You can pre-build templates and create workflows so you don’t have to react quickly. You can anticipate a change in the flow and create tem-plates in advance.”
Being proactive rather than reactive means staying ahead of the returns. If
modern best practices
scan line personnel processes returns into a warehouse management system, which then prints a unique license plate for tracking, managing and identifying the proper disposition channel.
MMH1009_Best_Reverse.indd 38 9/7/10 2:18 PM
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 39
you don’t handle returns quickly, you may lose your window of opportunity to resell the product or take advantage of the best disposition strategy.
Know your returnsMoney is made from choosing the right disposition strate-gies. If your company isn’t getting 80% back from its returns, you might be leaving money on the table. One best prac-tice is to break down returns into categories that are each disposed of in a different way that have different recovery rates. “Be on top quickly and know the best place to go to sell goods, but remember what was a good option yesterday may not be the best option today,” USF’s Stock suggests.
Products should be reshelved for resale or routed for liq-uidation quickly. “If you can’t get it back in, get it out,” says Derewecki. “Unless it’s red wine, it’s probably not getting any better.”
Good and good for youCompanies are getting better at connecting reverse logistics and sustainability initiatives, says Stock. “There are inherent benefits of good reverse logistics as it pertains to sustainabil-ity and companies are getting mileage linking those together as they promote goods and services to customers,” he says.
Additionally, says Tompkins’ Banerji, there is increased interest among Fortune 500 companies to explore the service supply chain space for repair, refurbishment, recycling, com-ponent harvesting and other downstream activity, not only to
improve financials, but also to contribute to sustainability commitments.
While this choice sounds like good karma, soon it won’t be a choice—it will be the law. Know the federal and state laws that apply to product dis-posal. Consumer goods like electron-ics contain hazards materials and have been at the center of new legislation that continues to be adopted across the country.
Rather than restrain companies, Banerji believes new regulations will actually open up many opportunities for U.S. businesses for recycling and harvesting precious met-als and other commodities. That can mini-mize the losses companies now experience in reverse logistics and potentially turn returns into profits. �
THE TRUSTED CHOICE.
BLUE HAS NEVER BEEN SO SOLID.A trusted business partner means confidence
in your decision making. With decades of supply chain experience and
an unmatched dedication to innovation and continuous improvement, CHEP is your problem-solving partner.
Learn how we can help. Every day.
chep.com/trustedchoice
MODERN best practices
Automatic sortation systems speed the returns process and make product available for the right disposition.
MMH1009_Best_Reverse.indd 39 9/7/10 2:18 PM
40 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
FOCUS ON lift trucks
ac-powered forklift in four models Offered as an alternative to fossil fuel-powered equipment, the QX series of 80-volt, AC-powered electric trucks produce fast travel and lifting speeds with long battery run times. Features include three pre-set performance modes, secure PIN access to personalized performance settings, and a multi-function LCD for on-board diagnos-tics (including self-test and coded service history). The series uses advanced AC trac-tion and hydraulic pump motors that reduce maintenance and lower the total cost of ownership. Ranging from 4,000 to 6,000 pound capacities, the QX comes in four models. nissan forklift, 815-568-0061, www.nissanforklift.com.
tight turns no problem for 3-wheel, counterbalanced truckEngineered for productivity and energy efficiency, the model 4450 three-wheel, sit-down counterbalanced truck smoothly transports products and stacks pallets. Features include a short head length to reduce turn radius in tight spaces and capacities up to 4,000 pounds. Selectable travel speeds enable the operator to adjust the truck to the applica-tion for better control, reducing speeds for trailer unloading and speeding up for long distance transport. The truck also includes oil-cooled disc brakes for longer brake life and cost savings, a common battery compartment for use in mixed fleets, and side-of-truck battery access for easier, faster changes. the raymond corp., 800-235-7200, www.raymondcorp.com.
energy-efficient, ac-powered trucks Offered in 4,000- to 6,500-pound load capacities—including a new 5,500-pound model—the 8-series line of four-wheel AC electric lift trucks is ideal for indoor handling. The power system is comprised of a series of subsystems to conserve and regenerate power for maximum productivity between battery charges while compensating for battery depletion and performance loss. Maintenance-free, the power system contains no motor brushes, springs, commutator or wearable parts. For operator comfort, the vehicle includes ample leg room and a full suspension seat with four-way adjustability. Visibility is enhanced with angled tie-bars on both the overhead guard and load back-rest extension along with lowered, free-lift mast cylinders. toyota Material Handling, u.s.a., 800-226-0009, www.toyotaforklift.com.
truck incorporates built-in stability systemOffered in cushion and pneumatic tire classes, the Veracitor VX truck may be specified with a choice of engine options that minimize fuel consumption, reduce noise, and cut maintenance and operating costs. The vehicles are equipped with a built-in, maintenance-free stability system to reduce truck lean in turns and improve lateral stability. Features include computer-controlled engine and trans-mission, durable clutch packs, and strong gears and shafts. To minimize brake usage, the transmission incorporates automatic deceleration to slow the truck upon release of the accelerator pedal. Capacities range from 3,000 to 19,000 pounds. Yale Materials Handling, 800-233-9253, www.yale.com.
MMH1009_FocusOn_Prod2.indd 40 9/7/10 11:10 AM
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 41
THE SOUND CHOICE.
BLUE HAS NEVER BEEN SO SAFE.Protecting your people, your products and the
environment are among your top priorities.Helping you achieve this is ours.
Learn how non-toxic, performance-proven CHEP pallets reduce worry for you and risk in your supply chain.
chep.com/soundchoice
IC trucks haul up to 12,000 poundsOffering capacities from 8,000 to 12,000 pounds, the P8000-P12000 and PD8000-PD12000 series of internal combustion pneumatic tire lift trucks are ideal for lumber, brick and block handling. Ergonomic features include full-suspension seat, LED/LCD display with operator passcode and maintenance reminders, and roomy overhead guarding. The vehicles include two-speed forward and one-speed reverse transmission and hydrostatic power steering. Extended service intervals up to 500 hours reduce downtime and costs. For longer, brighter burning, the trucks are equipped with LED front work lights and rear combination lights. Cat Lift Trucks, 713-365-1000, www.cat-lift.com.
Pneumatic tire forklift offered in LP, dieselThe C40/55 pneumatic tire forklift is offered in LP and diesel using a GM 4.3 Vortec engine in the LP and Kubota 3800 in the diesel. LP engines meet ultra-low emission CARB standards for 2010 and the diesels meet EPA Tier 3 low emissions requirements. With capacities ranging from 8,000 to 11,000 pounds, the models use two different wheelbases for a shorter turn radius on smaller versions and increased capacity on the larger units. Both single and dual drive tire configura-tions are offered. To enhance operator comfort, noise levels and vibration have been reduced through reconfigured transmission mountings and quieter engines. A lowered front cowl and glue-in glass on cab models optimize forward visibility. Clark Material Handling, 866-252-5275, www.clarkmhc.com.
LP forklift’s engine protected from overheatingThe FGC15N-FGC33N series of LP gas lift trucks handle up to 6,500 pounds. Ideal for use in warehousing, durable goods, and food product handling, the trucks include an LCD/LED display panel with operator passcode protection and indica-tors for fluid and fuel levels. An EPA-compliant engine powers the vehicles, which feature two-speed forward and one-speed reverse transmissions. To prevent overheating, an engine protection system automatically reduces RPMs if coolant temperatures rise too high. The trucks also offer a tilt steering column, operator restraint system, and two forward halogen work lights mounted on the overhead guard. Mitsubishi Forklift, 888-648-5438, www.mit-lift.com.
MMH1009_FocusOn_Prod2.indd 41 9/7/10 11:11 AM
42 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
3-wheel Vna truckThe AC-powered B3/30 handles up to 3,000 pounds on 24-inch load centers in very narrow aisle applications up to a maximum of 72 inches wide. The three-wheeled vehicle features triple masts with lift heights up to 30 feet, AC traction motor and hydraulic controller and 200-degree articulation for easy load insertion and retrieval from shelving. Reaching speeds of 6 miles per hour for travel, the mast lifts loads at 110 feet per minute. Bendi by landoll, 785-562-5381, www.landoll.com/mhp.
FOCUS ON lift trucks (Continued)
Walk-behind forklifts reach 130 inchesThe AC-powered Big Joe PDS-20 and PDS-25 lift trucks feature heavy duty I-beam mast construction, enhanced ergonomics, and 130 inches of vertical lift. AC drive motors deliver longer run time, faster operating speeds and more flexibility than previous versions. For navigation in tight areas, the vehicles can be switched to creep speed for precise handling with additional operator control. The forklifts can be powered by either four maintenance-free, 6-volt gel batteries or an industrial 12-85-7
battery. Big lift/eP group, 630-916-2600, www.bigjoeforklifts.com.
Multi-directional, side-shifting forkliftThe two-wheel drive electric Combi-CB lift truck is offered in 5,000- and 6,000-pound capacities. Powered by 48-volt AC technology, the vehicle offers multi-directional operation, a tight turning radius and integrated side shift capability. It may be specified with an open or fully enclosed operator cabin. Combilift Usa, 336-314 4262, www.combilift.com.
MMH1009_FocusOn_Prod2.indd 42 9/7/10 11:11 AM
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 43
BLUE HAS NEVER BEEN SO GREEN.
THE NATURAL CHOICE.
Need to reduce your impact on the environment? The CHEP Equipment Pooling System produces less solid waste and greenhouse gas while consuming less
total energy than other shipping options.
Calculate your actual savings by shipping on CHEP.
chep.com/naturalchoice
Moving-mast reach truck for cold storage useFor use in cold storage environments, the SR 5000 moving-mast reach truck features a cold store cabin that allows operators to remain productive in temperatures as low as -20°F. The cabin offers visibility from all angles with large, scratch-resistant windows and a clear view mast for easy spotting of the fork tips. For fast defrosting, the windows are heated and can be cleared with intermittent, two-speed electric wipers. Cabin tem-perature is maintained by electronically controlled twin heaters and fans directed by five adjustable air vents. All moving parts in the vehicle are coated with a specially formulated hydraulic oil and grease. AC-powered, the vehicle’s mast reaches up to 450 inches. Crown Equipment, 419-629-2311, www.crown.com.
Trucks offer three engine optionsOffering lifting capacities from 50,000 to 160,000 pounds, the Orion lift truck line for outdoor use includes low overall height, short wheelbase and oversize tires for ground clearance. The vehicles may be equipped with EPA, CARB propane or diesel engines. Hydrostatic drive, a load-sensing hydraulic system and high grade steel frame are standard features. A protected steering cylinder prevents damage, while conveniently grouped controls, load scale interface and easy-to-read dashboard decals help operators work efficiently. The operator’s station can be located on the right or left side, and power shift transmission is optional. High Reach, 905-844-4164, www.orionlifts.com, www.highreachinc.com.
Articulated lift truck for very narrow aislesFor very narrow aisle applications as tight as 78 inches wide, an articulated lift truck replaces counterbalanced and reach truck models. Offered in AC electric and LP gas powered versions, the vehicle lifts up to 4,400 pounds to heights in excess of 30 feet. The vehicle incorporates enhanced visibility, traction and maneuverability features. Aisle-Master, 336-378-8884, www.aisle-master.com.
Electric swing-mast VNA truckThe electric, AC-powered SLT30AC swing-mast truck is offered with a choice of triple or quad mast for lift heights up to 312 inches. Three-wheeled, the vehicle reaches lift speeds of 110 feet per minute and maximum travel of 7 miles per hour. Features include a 90-degree rotating mast and 20 inches of shift for easy load insertion and retrieval. Optionally, an easy-to-install wire guidance system can direct the truck throughout a facility for steering-free movement. Drexel by Landoll, 785-562-5381, www.landoll.com/mhp/drexel.
MMH1009_FocusOn_Prod2.indd 43 9/7/10 11:11 AM
44 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
Product sHowcase
Quiet, positive-drive conveyor curveA friction driven conveyor curve compo-nent provides an economical, rugged way to handle parcels with a dependable, posi-tive chain drive that eliminates belt slip-page. Ideal for slower speed applications, the curve features a removable unitized steel slider bed cassette and non-unibar laced belt connection. A variety of belting and power options offers further custom-
one-step measurement of cubic package weightOffered in three models, the CubeLogic dimensioner quickly and quietly measures the weight and dimensional data of any cubic pack-age in one step. It may be used with a printer and/or PC for speedy calcula-tions and data storage. The collaps-ible 250 and 265 versions are ideal for bench top or shipping desk use, while the 480 installs with a conveyor system for efficient stationary measurement. rice lake weighing systems, 800-472-6703, www.rlws.com.
divide and conquer storage in as/rs traysThe perfect divider system increases stor-age capacity and efficiency in automated storage and retrieval systems by creating multiple compartments in variable sizes. Offered in lengths to 120 inches and widths to 48 inches, the dividers range in height from 2 to 20 inches. Twelve stan-dard configurations may be specified, or optionally, custom configurations can be created with cell sizes from 2 x 2 to 12 x 12 inches. The dividers are adjustable and come in either painted or natural finishes. Accessories include bottom pads, foam pads and cup inserts. Flexcon, 908-871-7000, www.flexcontainer.com.
ization. The positive-drive unit reaches speeds up to 350 feet per minute and has a load bearing capacity of 50 pounds per linear foot. Noise emis-sion levels are less than 71 decibels. interroll automation, 800-462-3251, www.interroll.us.
1818 Penn. Ave. West, Warren, PA 16365 USA
www.superiortire.com 1.800.289.1456
*Refer to terms and conditions at www.superiotire.com
It's all about the compound. Designed to tackle two of the most extreme conditions, the cold condition expert Cushothane® EZ™ and the heavy load specialist Cushothane® XL™ are the final answer for top material handling professionals.
Cabinet for lean manufacturingFor better workspace organization and management, the 5S cabinet offers clear acrylic doors for instant visibility and at-a-glance accounting of tools and parts at point of use to support lean manufacturing philosophies. The durable cabinet case fea-tures metal pegboard inserts. Alternately, solid hinged doors with additional peg-board storage may be specified. Stanley Vidmar, 800-523-9462, www.stanleyvidmar.com, Booth 2532.
44 M A R C H 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
Abuse Resistant Belts work where others fail.Super Strong Joints are virtually unbreakable.High Tension Belts move heavier loads.Super Red Belts double conveyor capacity.
Dura-Belt 800-770-2358 614-777-0295Fax: 614-777-9448 www.durabelt.com
Better thanLifetime Warranty
Longer Lasting Belts
New Split Line-shaft SpoolsHigh precision. Reasonable price.Easy to install. Zero downtime. Can be locked to shaft. Eliminatesneed for keyed spools and shafts.
MAKE ROOM MAKE ROOM
Maximize storage space with ProHANGER™ … the perfect solution for storing and organizing long parts and supplies.
U.S. Patent Pending
Software directs, analyzes paperless picking activityExecutives, managers and supervisors can easily view pick rate productivity, accuracy and throughput with the version 6.0 release of LP dash-board. The software displays real-time, updated key performance indicators with drill-down granularity for facility, area, zone and employee-level views. Featuring a rich graphi-cal interface with drag-and-drop widgets for custom template views of performance data, the system offers an automatic slide-show style display of multiple, user-configured templates. Lightning Pick Technologies, 262-250-2143, www.lightningpick.com, Booth 1543.
NA 2010 Cleveland
Vertical storage systemFeaturing a stabilized shelf system with high storage density at an afford-able price, the motorized vertical pan carousel offers storage and retrieval of inventory with push-button control. The system delivers inventory to the opera-tor, yielding retrieval time savings up to 90%. Included standard are lifetime sealed bearings, shielded motors, secu-rity keypad, one-touch forward/reverse, wire mesh guarding and obstruction detectors. Vidir Machine, 800-210-0141, www.vidir.com, Booth 3018.
Treatment prevents mold growth on palletsE-fusion mold and mildew resistant coating and treat-ment system for wood pallets inhibits the growth of mold, preventing product recalls and refused ship-ments. The treatment bonds with wood during an elec-trostatic application process, making it ideal for pallets used in food and beverage handling, consumer prod-ucts, pharmaceuticals and paper products. X-Mold, 866-581-6653, www.xmold.net, Booth 625.
MMH100301ShowProds_ID.indd 44 3/10/2010 3:49:09 PMMMH1009_FocusOn_Prod2.indd 44 9/7/10 11:11 AM
mmh.com MODERN MATERIALS HANDLING / S E P T E M B E R 2 0 1 0 45
THE SIMPLE CHOICE.
BLUE HAS NEVER BEEN SO EASY.
Saving time. Saving money.Innovative solutions from CHEP help you do both.
See how tools like our online portal Portfolio+Plus can streamline your administrative activities.
chep.com/simplechoice
Robotic, mixed case packing systemThe MP900 fully automated robotic order picker packs com-plete mixed-load cases. The system uses a series of robots, intelligent project planning software and conveyors to custom pack mixed product into various cases, boxes and/or totes. After the order has been analyzed, the correct container is released into the system. The num-ber of robots used depends on cycle time and the num-ber of SKUs being processed. Options include the ability to check tare and final weights for quality control, label application, and case erecting/sealing. To reduce new packaging inventory, the system handles used or recycled packaging. Axium, 514-352-0500, www.axiumsolutions.com.
Light-duty swivel castersA line of light-duty swivel casters is ideal for racks and mobile stands. The twin-wheel F-series casters are offered in diameters of 3 inches with a capacity of 176 pounds, and 4 inches with a 220-pound capacity. Threaded stem or top plate versions may be specified. The casters feature a durable nylon body and polyurethane tread; options include a total lock brake and custom col-ors. Revvo Caster, 888-883-3596, www.revvocaster.com.
Portable computing deviceThe Everest E2000 rugged computer for vehicle and fixed-mount industrial applications—including forklift, manufac-turing floor and at the dock—may be run with Windows Thin Client, a minimal version of Microsoft Windows CE. The software includes the catalog items necessary to sup-port a remote device, including a constrained shell, remote desktop protocol and Web browser capabilities. This per-mits two-way communication between a terminal server and the device, while securing the device-side application to prevent corruption of the operating system. The software is also easier to boot-up and update. Glacier Computer, 603-882-1560, www.glaciercomputer.com.
1D/2D code reader With advanced optical design, high-intensity LED lighting and high-speed DSP decoding abil-ity, the SR-600 vision-based code reader handles applications up to 525 feet per minute. The device employs powerful decod-ing software filters to overcome inconsistent printing, laser marked or dot peen marked parts for stable reading on difficult codes caused by low contrast, scratches, distortion or reflec-tions. Optional programming directly on the reader may be accomplished with visible laser pointers or by connecting to the reader using the supplier’s free AutoID software to enable live monitoring, testing and function changes with an integrated USB port. Keyence, 888-539-3623, www.keyence.com.
Easy-to-replace cartridges in-line matrix printerThe P7000 cartridge line matrix printer integrates an easily replaced cartridge with clean-hands installation, uniform print quality and longer ribbon life. Ideal for supply chain and back-office printing applications, the printers work predictably and consistently in challenging physical environments, including temperature and humid-ity extremes and with low quality paper or paper with a high recycled content. The printer interfaces with current and legacy host environments and produces multi-part forms. Printronix, 800-665-6210, www.printronix.com.
MMH1009_FocusOn_Prod2.indd 45 9/7/10 11:11 AM
46S S e p t e m b e r 2 0 1 0 / Modern MaterialS Handling mmh.com
Warehouse & DC/ Special Supplement
If an analyst told you that a market was in recovery, you’d probably think that was good news. Not so fast. If you were talking about the lift truck market you’d have to get beyond the complexity first. In fact, some business ana-
lysts see recovery being as problematic as the recession when it comes to lift trucks.
George Keen is one of those analysts. Keen’s a senior con-sultant with Currie Management Consultants, a Worcester, Mass.-based firm that specializes in distributor business enhancement strategies. Keen sees the lift truck market as a remarkably complex puzzle, as challenging to understand for sellers as it is for buyers.
According to Keen, customers’ purchasing philosophy and behaviors evolve over time as a market matures. The problem
with lift trucks is that although they are mature products, they employ some of the most leading-edge technologies around—from computers and sensors to alternative power sources.
This leads to unpredictable buying patterns and compet-ing approaches to selling. Depending on their needs, buyers may make their lift truck selection based on product innova-tion, price, total value, or total cost of ownership. Keen sees these as phases.
“Not all lift truck customers change at the same time, so distributors need to evaluate which customer is in each buying phase and then respond to them in an appropriate fashion,” says Keen. “While we have seen customers go from just choosing a brand to being very concerned about price,
own, lease or rent? according to lift truck consultants, the
method that businesses pay for lift trucks tends to be a sound
economic indicator. Here’s how distributors are working
to solve the complex needs of today’s fleet owner.
BY MMH Staff
Lift trucks: Solving the financial puzzle
MMH1009WDC_supplement.indd 46 9/7/10 11:13 AM
View Our New Interactive Ad in MODERN’s Digital Edition
MM1006 ppxx Dehnco.indd 1 6/9/10 12:12 PMMM1009_ads 47 9/7/10 9:08 AM
48S S e p t e m b e r 2 0 1 0 / Modern MaterialS Handling mmh.com
many have moved on to the ‘total cost of ownership’ where they really care about the residual value at the end of their ownership, the cost of maintenance, and the serious issue of non-productive down time.”
Wherever you are in this procure-ment cycle, business conditions have also changed how equipment distribu-tors deal with customers. Today in the lift truck market, there are new, com-pelling reasons to own equipment, to lease it, and even to rent. Let’s take a look at each of those decisions.
The case for owningWith the recent business slowdown, there’s a glut of underutilized lift trucks
on the market. As they come off lease, they flood the used market, creat-ing attractive buying options for many small companies.
Keen says that these buyers will lean into used equipment as a hedge against cost. While this is bad news for sell-ers of new vehicles, it’s great news for servicing dealers offering maintenance programs.
Other buyers will purchase used lift trucks to fill their current needs while saving up for equipment that will suit their long-term strategies. At the same time, some dealers will discount and promote used equipment to get cash from their over-invested rental fleet and
older used inventory. But while there may be an abun-
dance of used forklifts for sale, the quality quotient may be on the way down.
“I’ve seen a sharp decline in good, low-hour, late-model forklifts on the market sold as ‘new-lift alternatives’ since the third quarter of 2009 into the first quarter of 2010,” says Matt McClelland, materials handling con-sultant at Johnson Lift Hyster, a distrib-utor that serves the greater Los Angeles area. “While the glut of used trucks has had a negative effect on new forklift sales…this will level back out in the next six to eight months due to a lack of
good, used equipment.” Roger Troost, president of
Morrison Industrial Equipment, a Grand Rapids, Mich.-based Mitsubishi-Caterpillar distribu-tor, has a slightly different inter-pretation of what’s happening on the used equipment market. Troost says that he’s seen the wholesale value for used trucks strengthen—which indicates that the used-truck glut has stopped and that those great val-ues are no longer there.
That doesn’t mean that ware-house and DC managers will stop buying late-model, low-hour, off-lease units in favor of new equipment. “I think as long as underutilized and low resid-ual off-lease units move into the used market the smart buyers will continue to lease used ver-sus new,” says Troost.
However, Bruce Pelynio, presi-dent and CEO of Heli Americas, a Memphis-based distributor for China’s Anhui Heli lift trucks, says that the maker of his line of trucks is counting on growth in the long-term ownership market here in the U.S. “I think the lease versus buy ratio will shift,” says Pelynio. “Peo-ple used to lease cars every three years and just flip them because they could get a $199 payment for
warehouse & Dc/ special supplement
LIFT TRUCKS
a key difference between a car buyer and a lift truck buyer is that the former purchases by choice while the latter pur-chases by challenge.
That’s why the leading lift truck suppliers train their sales people to help customers with “needs calculations” to surmount orga-nizational as well as operational challenges.
One of the biggest needs is on the customer’s side: consumers. People have to eat. That’s why sales of electric lift trucks—typically used in the food and beverage industry—didn’t suffer as much last year as did sales of internal combus-tion engine trucks—typically used in construction.
According to Brett Wood, president of Toyota Material Handling USA, in the North American lift truck market, electric models represented 67% of lift truck sales in 2009. In 2008 they were 60% and in 2007 they were 58%. Wood is optimistic that the trend will continue into next year.
On the purchase or lease scale, the bal-ance will continue to favor leasing, Wood believes. Getting back to that “customer-needs” analysis, suppliers and their dealers recognize the psychological aspects of a lift truck deal. Today the lift truck purchas-ing cycle is longer and involves a team of people on the customer side. It’s not just the procurement officer’s decision. According to Wood, top-of-the-line lift trucks now get
organizational attention.“The sign-off on a $400 a month lift
truck verses a $20,000 lift truck involves an interesting strategy internally at a customer location,” Wood says. “Toyota has high quality and high value; however, as with all lift trucks, it’s a significant investment, so we have a class for new salespeople to help them apply that financing strategy when a member on the customer purchasing team analyzes the price of a lift truck. One strat-egy is to talk more in terms of a monthly lease payment and all the options that go with that.”
Nevertheless, lift truck purchasing teams are continuing to hedge their bets until the economy’s strength is assured. Rental has supported that strategy, and dealers have been enabling that trend.
“We saw many dealers sell off a lot of their rental trucks just to cut their costs because the equipment was sitting,” says Jim Moran, executive vice president of Crown Equipment Corp. “Now demand is start-ing to come back, as is the top line revenue in the rental business. Manufacturers and dealers are now starting to think about the need to add trucks to the rental fleet, and that could be a cautionary note on the part of a lot of users in not wanting to get overly committed until they really understand what’s going on over the next year with the economy.”
The cautious approach to an economic comeback
MMH1009WDC_supplement.indd 48 9/7/10 11:14 AM
mmh.com Modern Materials Handling / S e p t e m b e r 2 0 1 0 2 0 0 5 49s
a Cadillac. Those days are gone because nobody wants the residuals any more—the capital isn’t available to do that.”
The case for leasingLeasing gives customers access to technologies they might not be able to afford when buying a lift truck outright. It also changes a customer’s mindset from price to cost of ownership—espe-cially if the lease comes with a main-tenance package. That’s why George Keen tells dealers to understand their customer’s procurement phase.
“Just when you think all customers evolve from left to right, we get new products like the hybrid fuels, AC, and other fuel options. Customers are back to looking for the best product not best price,” says Keen. “Dealers will need to be paying good atten-tion to the customers’ buying phase and not just throwing quotations out to every person thinking of buying new trucks. For example, throwing a low-ball quote out to a prospect who is concerned about cost of ownership will only lose you money.”
On the customer side, Matt McClelland’s advice to fleet managers is to look at solutions in three-year to five-year terms instead of a payment-to-payment basis.
“A lot of the solutions I have been offering as a consultant have a high per-ceived investment cost, but I usually can show savings in 20 months or less,” says McClelland. “But some fleet managers look at the payment and decide to save $5 per month instead of $15,000 over 5 years. The technology to help compa-nies save thousands over that long term lease is usually in the payment.”
The case for renTalThere are opportunities arising from the recent economic struggles of both buyers and sellers of capital equipment. Lift truck fleets with low utilization and high financ-ing costs may be causing cash flow prob-lems and owners may be tempted to dump that equipment on the rental market.
At the same time, dealers are seeing
an increase in short term rentals (STRs) from clients who do not have enough money in their capital budgets for an immediate purchase or lease. In this case, an STR can help them meet their needs until the next capital budget.
Alternatively, large fleet owners may be receptive to dealers offering to “re-pur-chase” their fleet and rent it back to them through a long-term rental (LTR). This would free up cash from those assets.
“Although the dealer would need the financial position to make this offer, the long-term return could be very good,” Keen explains. “They cap-ture all the parts, service, and rental business and they also have total con-trol of the account for X years, and should have good control at time of conversion. But dealers will need to be smart and creative in finding out how to deliver good value inside profitable contracts.”
Just as leasing helps fleet owners stay
on top of technology’s evolution, rental can do the same, but for a shorter term. At the same time, it helps the fleet manager negotiate the uncertainty of these economic times.
“I would suggest fleet managers can be less reactive to an upswing or downturn in the market by buying more strategically,” says Paul Hol-lowell, vice president of rental opera-tions for Modern Group Ltd., a Hyster distributor that covers the Northeast. “They can do that by purchasing less than the immediate need for lift trucks and renting equipment as a prudent alternative.”
The rise in STRs reported by distrib-utors contacted for this article shows that these fleet managers are filling application gaps before committing to long-term leases or purchases. In the meantime, these distributors and the suppliers they represent are busy pre-paring to meet that commitment. M
system can now self-regulate its speed depending on the volume that’s inbound on the system,” says Ruehrdanz. The warehouse control systems (WCS) soft-ware makes that decision using elec-tronic sensors that’s constantly moni-toring where all the cartons are and how they’re fl owing.
2. Print and apply on the fl y. When your supplier is a fancy designer from Italy who can’t be bothered with labeling, you’ve got to be ready with Plan B. The use of print and apply sys-tems allow crossdock operators the fl ex-ibility to deal with inadequately labeled cartons so that proper labels can be printed and applied on cartons as they travel along conveyors allowing them to be immediately cross docked.
“When they fi rst started out, these systems could process 10 cartons per minute (cpm) maybe,” says Steve Haskell, vice president for L.A.-based SDI Industries, a designer, integrator and manufacturer of materials handling systems. “Now you can get 30 cpm reli-ably with a tremendous range of print-ing and software capabilities.”
3. Crossdocking with voice and RFID. With a scan of the pallet license plate, voice-directed operators on the receiving dock can be instructed to quickly move their crossdock pallets to
the correct shipping doors without hav-ing to look at a terminal.
By attaching an RFID tag on a pallet, the simple act of moving the pallet from a tractor trailer through a receiving por-tal not only acknowledges receipt, but allows the automatic download of criti-cal information so automatic crossdock allocations can be made.
The next generation of RFID-enabled lift trucks go a step further by combining RFID data collection with optical real-time location sys-tems (RTLS) to precisely record pallet movement without any operator typing or scanning. As adoption increases, users are investigating the feasibility of using RFID-based technology to elimi-nate the need for some EDI communi-cations by encoding the advance ship-ping information onto the RFID tag to reduce the number of EDI messages.
Vision for the futureWith more trading partners shar-
ing data in real time along with greater levels of systems integration, Manhattan’s Lamphier envisions more “dynamic crossdocks” that constantly look for opportunities to fl ow-through product, even while still in transit. SDI’s Haskell sees equipment improv-ing and becoming more affordable. Soon, you’ll simply be running out of excuses not to crossdock.
50S A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
» A Special Supplement to MODERN MATERIALS HANDLING
This gapping conveyor creates mini-mum gaps between cartons. Minimum carton gaps allow the conveying and sorting systems to accommodate more throughput at a slower operating speed.
A sliding shoe sorter diverts cartons using a parallel diverting method.
MMH100401sup_Crossdock_ID 50 4/8/2010 11:36:23 AM
Warehouse & Dc/ special supplement
LIFT TRUCKS
MMH1009WDC_supplement.indd 49 9/7/10 11:14 AM
50 S e p t e m b e r 2 0 1 0 / Modern Materials Handling mmh.com
Modern: What has been the most significant development in the pallet industry during the last 30 years?
White: There have been a couple of important changes. In the opera-tion of the supply chain, there has been a dramatic increase in the use of automation over the last 30 years. That has an impact on the quality of pallets required. When it comes to the pallets, we’ve seen a dramatic increase in the recycling and repair of new and used pallets, and a dramatic increase in the use of pallet pooling. Those were small segments of the industry 30 years ago.
Modern: You’re interested in the unit load concept. tell us why that’s important to pallet users?
White: Pallet users have typically focused on how they can save 25 or 50 cents on the price of an eight or nine dollar pallet. But if you think of the unit load as a system of interact-ing components that includes a pal-let, the stretch wrap or strapping, and the distribution packaging, you find that the packaging that sits on the pallet might cost $50 to $500.
modern 60 Seconds with...
Mark White
White & Company title: President
location: Blacksburg, Va.
experience: 30 years research, development and design of wooden pallets; founder of the Center for Unit Load Design at Virginia Tech (1993); developed the undergraduate packaging science program at Virginia Tech (2006)
priMarY FocUs: Packaging consultant
What we know now is that if we’re smarter and do a better job of pallet design, we can reduce the stresses on the distribution packaging —the most expensive component of the unit load. Instead of saving 25 cents a load, I can save several dollars per load. But to do that, we need to change our focus from the pallet to the entire unit load.
Modern: When you look 10 years down the road, what do you think will be different about how we’re using pallets or the materials they’re made from?
White: Well, no one has a crystal ball. But, when you look at the research into the supply chain design going on in academia, there are real opportuni-ties to better utilize our transporta-tion and storage infrastructure. The operation of future supply chains will be a metaphor of the Internet-based “information highway” called the Physical Internet. Think of it as a global rideshare with inventory on wheels in which competitors are sharing trans-portation capacity around the world. To do that, there has to be a lot more standardization than there is today around pallets and packaging. M
MMH1009_60Sec.indd 50 9/7/10 11:08 AM
46 M A R C H 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
Label Holders
Ergonomic Holster Systems
Bumpy Rides?
L O G I S T E R R A , I N C.
Secure YourTerminal, and
with a LOGISTERRAtruck-mount Holder
6190-K Fairmount Ave San Diego CA 92120
info@800-338-8759 or 619-280-9992
®
Holster YourSide Arm...
...or a slinger,right or left
classified/recruitment
LabelHolders
Don’t Cost - They Pay!
800-242-3919www.aignerindex.com [email protected]
WHEN YOU DON’T ADVERTISE, A
TERRIBLE THING HAPPENS...
NOTHING!
Racks
Accessorize for faster product mix swaps
New slotting accessories for the supplier’s SelecDeck carton flow sys-tem enable fast, cost-effective prod-uct mix changes. Offerings include drop-in lane dividers that fit into slots along the load side and permit cartons to be added, changed and sorted by size and SKU. To eliminate adhesive labels, a sliding label holder can be placed anywhere along the front of the case flow bed for hassle-free reprofiling. Additionally, the SelecDeck system retrofits existing structural roll-formed racks with-out replacing shelf beams. Frazier Industrial, 800-614-4162, www.frazier.com.
Steel axle carton flow tracksCarton Trax steel axle carton flow track features abuse-resistant 1.125-inch dia-meter polyethyl-ene rollers and chromate-coated steel axles that are free-floating to prevent binding for durable, smooth operation. The heavy-duty tracks incorporate a specially engineered steel axle tooth for close wheel placement that enhances reliability. For carton support, the wheels are placed on 1.5 inch centers. The grav-ity-driven tracks include durable, galvanized side channels, making them ideal for freezer and food stor-age applications. UNARCO Material Handling, 800-862-7261, www.unarcorack.com.
Racking resists earthquakes
Offering greater lateral stability than the supplier’s standard pallet rack, the PLUS rack is ideal for areas where seismic activity or other severe conditions are likely. The rack’s beam end connectors feature four prongs to create a tighter connection with more surface area between the beam and the upright post. Beams are welded 3 inches down from the top of the connector to evenly distribute loads across all four prongs. To pre-vent accidental dislodging, all beams have a beam locking key. Upright frames offer heavy-duty 35-square-inch, 0.325-inch thick footplates with four anchoring holes. Standard frame heights range from 48 to 240 inches. Penco Products, 800-562-1000, www.pencoproducts.com.
Customized push back rack systemsPush back, high-den-sity storage rack permits selectivity and dense storage, making it ideal for storage of multiple SKUs and mul-tiple pallets of individual SKUs. The system includes an integrated cart system mounted on rails in the rack structure at a slight pitch. Pallets are placed on the carts as many as six-deep per storage lane. Each racking system is custom-configured to match specific pallet and load size: width, depth and height. Elite Storage Solutions, 508-230-5755, www.elitestoragesolutions.com.
MMH100301ShowProds_ID.indd 46 3/10/2010 3:52:18 PM
SUPERIOR BANDS
2 PLY THREAD DESIGN
COVERELASTIC COREYARN
800.227.2906 Video [email protected]
QUICK CONNECT
TWISTED O-RINGS
NO TOOLS REQUIRED
www.superiorbands.com
C
M
Y
CM
MY
CY
CMY
K
classified/recruitment
Label Holders
Twisted O-Rings Career Opportunities
Load Transfer Systems classified/recruitment
Label Holders Load Transfer Systems
Career Opportunities
LabelHolders
Don’t Cost - They Pay!
800-242-3919www.aignerindex.com [email protected]
VP/Distribution Systems Sales Engineers Engineering Manager VP/Logistics VP/Sales Dir/Marketing
Auction
To advertise, or for more information
please contact:Jennifer Drevline
847-223-5225 ext. [email protected]
mmh100401_cls 2 4/6/2010 12:14:52 PM
classified/recruitment
Label Holders Load Transfer Systems
Career Opportunities
LabelHolders
Don’t Cost - They Pay!
800-242-3919www.aignerindex.com [email protected]
VP/Distribution Systems Sales Engineers Engineering Manager VP/Logistics VP/Sales Dir/Marketing
Auction
To advertise, or for more information
please contact:Jennifer Drevline
847-223-5225 ext. [email protected]
mmh100401_cls 2 4/6/2010 12:14:52 PM
ExECuTivE OffiCES111 Speen StreetFramingham, ma 01701508-663-1500
Brian Ceraolopublisher [email protected]
Kelly Jonesproduction [email protected]
Charles TannerCirculation [email protected]
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 [email protected]
ia, iL, in, KS, mn, mO, nD, ne, SD, Wi, Central CanBob Casey, District Sales Director 847-223-5225 Fax: 847-223-5281 [email protected]
ar, aZ, Ca, CO, iD, La, mS, mt, nV, OK, Or, tX, Ut, Va, Wa, WY, Western CanPaul Zampitella, District Sales Director 508-663-1500 x307 Fax: 877-330-7436 [email protected]
aL, DC, KY, FL, ga, nC, pa, SC, tn, Va, WV Greg Bolen, District Sales Director 704-875-7977 Fax: 866-680-5930 [email protected]
WEB OPERaTiOnSClive PurchaseDirector, Web Operations [email protected]
DiRECTOR Of OnLinE SaLESPaul Zampitella508-663-1500 x307, [email protected]
CuSTOM aRTiCLE REPRinTSreprint management Servicesthe YgS group (800)290-5460, x100 [email protected]
MaGaZinE SuBSCRiPTiOnSFree magazine subscriptions available at www.mmh.com/info/subscribeModern Materials Handling e-mail: [email protected] Handling Product News e-mail: [email protected] x 294 mail: peerless media, pO Box 1496, Framingham, ma 01701
enEWSLETTER SuBSCRiPTiOnSKeep up with the latest industry news and resources. Sign-up for our FREE enewsletters at www.mmh.com/info/subscribe
Business staff
MMH1009_Classified.indd 3 9/7/10 11:10 AM
