Fanatical - Modern Materials Handling

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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

January 2014

Fanatical about e-fulfillment 20

EQUIPMENT REPORT

The case for carousels 24BEST PRACTICES: FOOD AND BEVERAGE DISTRIBUTION

A healthy part of a balanced supply chain 32INFORMATION MANAGEMENT

Tech-driven revolution in the works for labor management 34

Paul Chisholm, vice president of logistics, Fanatics

See it all50

FANATICS:

SPECIAL REPORT

Invest in productivity with lift truck financing 42

Order Fulfillment SolutionsFor any size business. For any size budget.

Learn more. Visit www.dematic.com or contact us at [email protected] or 1-877-725-7500.

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mmh.com MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 4 3

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

Dematic acquires Upturn SolutionsDEMATIC RECENTLY ANNOUNCED its acquisition of Upturn Solutions, a leading provider of Computerized Maintenance Management Systems (CMMS) designed for distribution, manufacturing and warehouse envi-ronments.

“The acquisition of Upturn Solutions supports our strategic mis-sion to provide our customers with the critical business intelligence required

today to streamline and automate their processes,” said Ulf Henriksson, president and CEO of Dematic Group. “The integration of CMMS into our software offering will further enhance our ability to deliver robust order fulfillment solutions for e-commerce, retail, apparel, healthcare, 3PL, food, beverage, parcel and manufacturing.”

The CMMS offering is a low cost, subscription-based service designed

North American machine vision sales soar in third quarter 2013TOTAL MACHINE VISION SALES in North America climbed 23% compared to the third quarter of 2012, according to new statistics from AIA, the industry’s trade group.

Total machine vision sales include sales of sys-tems and components. The systems category, which

includes smart cameras, con-tinued driving overall growth with a 25% increase year over year. Components sales were also up 10%.

Alex Shikany, AIA’s direc-tor of market analysis, said “sentiment from industry experts is mixed regard-

ing machine vision sales heading into next year. For machine vision components, 71% of industry experts believe we will see an increase in sales over the next six months. However, nearly three quarters of the experts expect total system sales to be flat.”

Pack Expo East picks up steam, exhibitorsPACK EXPO SHOWS owner and producer PMMI, the Association for Packaging and Processing

Technologies, has reported high demand for exhibit space in the inaugural edition of Pack Expo East (Pennsylvania Convention Center, Philadelphia; Feb. 2–4, 2015).

In fact, according to Jim Pittas, vice president of trade shows, PMMI’s plans to expand the show floor to accom-modate demand are already underway. “With more than a year until the show, exhibitors have already commit-ted to more than 78% of our projected exhibit space,” said Pittas. “Space sales have only been open since September at Pack Expo Las Vegas.”

The show, at more than 40,000 net square feet of space, will feature processing and packaging solutions for some of the most critical market segments in the eastern United States, market segments that happen to have large concentrations near Philadelphia.

by maintenance people for maintenance people. The product offers the customer the ability to “pay as you go” rather than requiring a large upfront invest-ment as with traditional CMMS.

ISM semiannual report paints a positive picture for 2014 growthCONTINUED GROWTH REMAINS likely for 2014, according to the December 2013 Semiannual Economic Forecast recently released by the Institute for Supply Management (ISM).

This report, which is also released in April each year, is based on feed-back from U.S.-based purchasing and supply chain executives, manufactur-ing and non-manufacturing sectors.

On the manufacturing side, the report noted that manufacturing revenue is expected to increase 4.4% in 2014, with capital expendi-

tures slated to rise 8%, and capacity utilization at 80.3%.

The report predicts inventories rising 0.9% to support planned 2014 sales levels; employment is pegged to increase by 2.4%, with labor and benefit costs going up by an average of 2.3%; and raw materi-als prices are expected to head up 1.2% through April and then another 0.4% throughout the rest of the year.

Looking ahead to 2014, the report laid out the biggest con-cerns ISM member respondents’

businesses are facing, including domestic sales growth (32%), inter-national sales growth (18%), health-care reform uncertainty (14.6%), and ongoing government shutdown and debt ceiling concerns (13.5%), among others.


PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

VOL. 69, NO. 1

DEPARTMENTS & COLUMNS 3/ Upfront 7/ This month in Modern14/ Lift Truck Tips: Electric trucks16/ Packaging Corner: Dunnage60/ Focus On: Rack/shelving/mezzanines66/ 60 seconds with...

NEWS 9/ Reshoring likely to radically reshape U.S.

economy in the next 12 months10/ 240,000 square feet of show floor reserved

at record ProMat 2015 space draw11/ CEMA reports booked orders for

October up 11%12/ FANUC merges all operations in Americas

COVER STORYSYSTEM REPORT

20 Fanatical about e-fulfillmentIn its new Ohio distribution center, sports apparel distributor Fanatics has created a state-of-the-art e-fulfillment center.

24 E-fulfillment by designFanatics distribution center was built to minimize storage and maximize picking across more than 500,000 SKUs.

FEATURESEQUIPMENT REPORT

26 The case for carouselsNew storage and picking technologies are stealing the limelight, but horizontal and vertical carousels and VLMs still have a place in the tool kit.

BEST PRACTICES

32 Food and beverage: A healthy part of a balanced supply chainBuilt on a software foundation, the targeted use of automation is helping warehouses improve themselves, their supply chains and the customer experience.

INFORMATION MANAGEMENT

38 Tech-driven revolution in the works for labor managementCloud computing, mobility, and workflow combine to make LMS solutions stronger tactical solutions for everyone in the warehouse.

SPECIAL REPORT

42 Invest in productivity with lift truck financingThe structure of an equipment lease can have a significant impact on operations —and there are ways to ensure the impact is a positive one.

PRODUCTIVITY SOLUTION

48 Distributor streamlines processes with mobile workstations49 Modular workstations put all tools within arm’s reach

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 mail-ing 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. ©2014 Peerless Media, LLC.

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Paul Chisholm, vice president of logistics, Fanatics

60 seconds with...Kevin Gue

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E-fulfillment fanatics

If you’re wondering to what degree the e-commerce revolution has changed ware-house and distribution center operations,

look no further than this month’s System Report starting on page 20.

Not only does Fanatics’ 514,000-square-foot, pure-play e-fulfillment center put up some gaudy numbers, but it’s a perfect ex-ample of how e-commerce has pushed the savviest players to rethink some of the very basic warehouse and distribution processes.

In the case of Fanatics, they’ve eliminat-ed reserve storage and replenishment as we typically think of it.

As with any other sports-related busi-ness, a quick look at the statistics helps tell the story. Over the past nine years, Fantatics has grown into the leading online retailer for officially licensed sports merchandise for professional and college sports teams. To-day, Fanatics stocks 500,000 SKUs and has to be prepared for wild swings in demand that range from 30,000 units a day to 500,000 units during peak periods like the Final Four and the Super Bowl—and ship those units with only seconds left on the clock.

To make this happen, company manage-ment knew it needed to design an order fulfillment system from the ground up to help manage these fluctuations. It also knew some of its traditional processes along the way needed to be changed to gain more scalability.

As Paul Chisholm, Fanatics’ vice presi-dent of logistics, explains to our Bob Trebilcock, the key to the system is a non-replenishment based order-fulfillment model that offers a more flexible fulfillment process than it was using in the past. While favorites are always stocked, the facility has

now eliminated conventional reserve pallet storage. Instead, inventory is stored in one of four different sized bins in a four-level mezzanine in the center of the building where there’s 42 feet of clearance.

In fact, all new receipts go straight from receiving to a pick face ready for immedi-ate picking. “The mezzanine has 1.1 million pick faces and space for 15 million units,” Trebilcock told me when he finished report-ing. “Their receiving process may be little more time consuming because incoming merchandise goes directly into picking, but I was awestruck by the sheer number of pick-ing locations they’re managing.”

For fulfillment, a wave-planning tool aggregates orders that are picked and conveyed to a put wall area for multi-line packing and a separate area for single-line orders. The facility has 60 single-line pro-cessing stations and 60 put wall pods. Ac-cording to Chisholm, each pod can handle an estimated 75 orders, for a total of 4,320 orders at a time in the multi-line area.

After only 10 months up and running, Chisholm reports that the system is process-ing more units per hour at higher units per hour shipped than originally planned. And, as for customer service levels? Well, the crowd is going wild.

“They do replenishment of evergreen items that are always in stock,” adds Trebil-cock. “However, when they hit a minimum level that would trigger replenishment it’s for an order that’s going to go into picking. I thought this was very cool and reflects other changes that we’ve seen in the retail System Reports we ran in 2013, like Wet Seal and Gilt Groupe. Any way we slice it, e-commerce is rocking our world.”

m m h . c o m MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 4 7

m m h . c o m MODERN MATERIALS HANDLING / J A N U A R Y 2 0 1 4 9

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MORE THAN ONE-THIRD of U.S. businesses will move goods and ser-vices work back to the U.S. in the next 12 months, according to the results of the Grant Thornton “Realities of Reshoring” survey. The num-bers also imply that as much as 5% of overall U.S. procurement may come back to the U.S.

“The idea of going over-seas was to drive costs down,” said Wally Gruenes, Grant Thornton’s national managing partner for industry and client experience. Now, many have identifi ed cost savings in the sophisticated analysis of data they receive from business partners in the supply chain.

“Most manufacturers are looking for partnership to share information at a very detailed level. The extent to which suppliers are willing or able to share that informa-tion could inform whether they’d like to do business. They might need collabora-

tion or face-to-face meetings, and the proximity of a supplier can be important,” Gruenes added.

Executives indicated that their

companies are likely or very likely to bring back the following categories of work: IT services (42%); compo-nents/products (37%); customer services or call centers (35%); and material (34%).

“These results could dramati-cally impact U.S. trade balances and should provide an enormous boost to domestic manufacturers, retailers,

BY JOSH BOND, ASSOCIATE EDITOR

A recent report indicates that as much as 5% of overall U.S. procurement may come back to the United States.

ECONOMY

Reshoring likely to radically reshape U.S. economy in next 12 monthsGRANT THORNTON SURVEY FINDS U.S. COMPANIES WILL BRING PRODUCTION, CUSTOMER SERVICE AND IT INFRASTRUCTURE BACK TO THE UNITED STATES.

10 J A N U A R Y 2 0 1 4 / MODERN MATERIALS HANDLING m m h . c o m

wholesaler/distributors and service providers,” Gruenes said. “It’s an ideal time for executives to assess reshoring opportunities by thor-oughly evaluating all tangible and intangible costs related to offshore suppliers.”

Other highlights from the survey include:

• Only 9% of respondents de-scribe their supplier relationships as

a “partnership (sharing intellectual property, cost savings)” with signifi -cant added value. In fact, a strong majority (64%) describe their sup-plier relationships as limited-value “buy and sell (transactional, focused primarily on cost)” exchanges.

• Executives are reshoring be-cause they expect cost effi ciencies (28%), improved quality (26%) and more timely deliveries (29%). �

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THE PROMAT 2015 exhibit space draw, held Dec. 10, 2013 in Chicago, attracted 400 exhibitors who re-served a fi rst-day record of 240,000 net square feet of show fl oor space.

The space reserved represents 76% of the ProMat show fl oor. Hyster

and Yale selected the fi rst booths of the event.

“The record success of the ProMat 2015 exhibit space draw is a clear indicator that MHI members have a positive economic outlook for 2014 and beyond,” said George Prest, chief

executive offi cer of MHI. “This bodes very well for both ProMat 2015 and the material handling, logistics and supply chain industry as a whole.”

ProMat 2015, sponsored by MHI, will be the largest international

PROMAT

240,000 square feet of show floor reserved at record ProMat 2015 space draw

THE CONVEYOR EQUIPMENTManufacturers Association (CEMA) recently reported that its October 2013 booked orders increased 11% when compared to October 2012 orders.

October 2013 booked orders were up 55.4% when compared to September 2013. October booked

orders were up 9.4% for bulk han-dling equipment and up 92.5% for unit handling equipment when com-pared to September.

CEMA executive vice president Bob Reinfried said in a recent inter-view that the numbers were welcome news following several months of performance that fell slightly below

2012’s record levels. “It’s still go-ing to be tough to beat last year’s numbers, but the unit handling folks nearly doubled their orders in the last month. If they fi nish the year in the same way, we might still end up matching last year’s sales,” Reinfried said. “As of right now, we’re about

materials handling, logistics and sup-ply chain show and conference held in the U.S. in 2015. The event will showcase the solutions of approxi-mately 800 exhibitors who will fi ll the 300,000-square-foot show fl oor.

ProMat 2015’s exhibits will rep-resent all segments of the materials handling and logistics industry, from traditional, manual equipment to

computerized, automated systems and information technologies. Manufacturers, consultants, third-party logistics providers, publishers and systems integrators will be in attendance to demonstrate their equipment, systems, software and services to manufacturing, distri-bution, supply chain and logistics professionals. �

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$600 million shy of last year’s $10.5 billion, so the 2% year-over-year decline we predicted in the fall still appears accurate.”

CEMA’s October 2013 billed sales (shipments) increased by 3.5% when compared to October 2012 sales.

October 2013 billed sales when com-pared to September 2013 billed sales were up 8.7%. October billed sales were down 2.8% for bulk handling equipment and up 17.9% for unit handling equipment when compared to September. FANUC HAS OFFICIALLY MERGED

all of its operations in the Americas into a single company named FANUC America Corp.

The new company, with headquar-ters in Rochester Hills, Mich., will have combined annual sales in excess of $1 billion and 22 locations.

Rick Schneider, previously presi-dent of FANUC Robotics America, has been appointed president and CEO of the new company.

FANUC America Corp. plans to leverage the synergies made possible by this merger to better support its customers by supplying a complete range of products and services for robotics, CNC systems and factory automation solutions in the industry.

“The merger of the FANUC companies in the Americas better enables us to accomplish our mission of increasing the competitiveness of North and South American manufac-turers by creating opportunities for them to maximize their effi ciency, reliability, quality and profi tability,” said Schneider. �

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LIFT TRUCK TIPS

Identifying the true cost of batteriesSimple steps can point the way toward prolonged battery life and an optimal battery inventory.

It’s almost certainly true that any lift truck fleet has plenty of room for improvement, but the process of locat-

ing all the potential savings and produc-tivity increases does not require a massive overhaul of equipment, add-ons and data analysis. Small, incremental changes can produce rapid returns, particularly when it comes to battery management, according to Keith Allmandinger, senior marketing manager for Komatsu Forklift.

“With electric trucks and batteries you have many opportunities to develop bad habits,” says Allmandinger, who says proper watering, proper charging and equalizing charges are all very important to ensuring a lift truck is productive and running as required. “It is easy to start taking shortcuts, but every time you do, you decrease the effectiveness of both the battery and the forklift.”

Poor battery management will shorten the life of the battery and decrease the value of the lift truck. Best prac-tices include daily inspections, charging as required by the application’s needs, and weekly equalizing charges. When considering data capture equipment, the full suite of fleet telematics might be a bit overwhelming. Allmand-inger suggests beginning with a simple datalogger, which will provide very precise information on the application’s fuel needs, charging requirements and overall health of the battery.

“A customer needs to consider their fuel consump-tion needs, whether that comes from a battery or an LPG tank,” he says. “Information is power, so you can then use this information to determine what battery and charging system would work best in a specific application.”

A common bad habit is for operators to charge batter-ies too early or too often, which prevents the battery from discharging to its lock-out stage. “The operator is key to the entire battery-management process,” Allmandinger

says. “An operator needs to get comfortable with the process and application so that they are utilizing the bat-tery fuel as efficiently as possible.”

Using a high frequency, smart-type charger will also prolong the life of the battery by delivering just the right amount of amps and voltage. Today’s smart-type chargers can even communicate and keep the charging history of each specific battery, he says, providing a view of the overall battery inventory. Customers can take advantage of a well-managed battery system to create a ‘fuel pool’ that will help to eliminate excess batteries and save on operational costs.

It is even possible for the electric lift truck customer to purchase fuel as they use it. “The customer doesn’t need to buy the battery,” adds Allmandinger. “The supplier can provide the battery with a datalogger and then charge the customer, in many cases, less than a penny per amp for their fuel.”

By Josh Bond, Associate Editor

Josh Bond is Modern’s associate editor and can be reached at [email protected]


In just the past two years, there’s been a huge shift in the way distribution centers are

both evaluating and using void fill and protective packaging as they tackle the on-going chal-lenge of getting an increasingly complex mix of products out the door.

From large retail DCs, to third-party logistics (3PL) providers, to companies shipping discrete parts and products to other busi-nesses, stocked product quanti-ties and varieties are growing in numbers, shapes and sizes. That can make stocking the right protective packaging materials a challenge.

“Today, customers are much more sophisticated in how they analyze packaging costs,” says Evan Everett, general manager of Pregis Corp.’s protective packaging systems. “As recently as a couple of years ago, shippers looked for the lowest cost from a materials standpoint. Now they examine their total packaging costs, including damage, freight, warehouse utilization and the recipient’s experi-ence when they open a package.”

For example, companies that have traditionally used kraft paper for void fill and cushioning have found that it may not be the most cost-effective solution for packing a wide variety of products.

“In many cases, paper can add unnecessary weight in-creasing freight costs,” Everett says. “That has prompted companies to look at using air pillows as an alternative for void fill when packaging different items. Inflatable packaging can be created in a wide range of sizes and keeps freight costs to a minimum. As a result, they may elect to use both air and paper packaging in their facility

to deliver the best total cost scenario.”Additionally, warehouses don’t want to store or

handle large rolls of pre-made packing in any material. They’d prefer to use that space for other, more profit-able activities.

“The packaging system has to drive efficiency by deliv-ering the right material, on-demand,” says Everett.

To deliver multiple packaging options to a single pack-ing station as efficiently, safely and ergonomically as pos-sible, Pregis develops compact, automated dispensing systems custom-integrated at the workstation—bringing packaging material to the box without wasted movement.

Likewise, the equipment can be easily loaded with rolls of material weighing less than 35 pounds to reduce strain. For even greater operator safety, Everett adds, the company recently developed a bladeless cutting feature on its paper dispensers. �

Analyze your protective packaging costsConsidering multiple factors, including on-demand use of different materials, could lower your total costs when packaging diverse product mix.

PACKAGING CORNER

By Sara Pearson Specter, Editor at Large

Sara Pearson Specter is an editor at large with Modern and can be reached at [email protected].

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MODERN system report

True sports fans are fanatics. It’s not just enough to watch their favorite teams. They show their loyalty with t-shirts, sweaters, hats, bedding and more. That’s the premise behind Fanatics, the leading online retailer for officially licensed sports merchandise for profes-sional and college sports teams. “If you can put a sports logo on it, we prob-ably stock it,” says Paul Chisholm, vice president of logistics.

That’s not hyperbole. On any given day, Fanatics stocks more than 500,000 SKUs in its new 514,000-square-foot distribution center near Columbus in Frazeysburg, Ohio. The facility was previously home to the Longaberger basket company.

Fanatics shares with its fans a fanaticism, but for e-fulfillment and distribution. Working with a systems integrator (World Source Integration, world-source.com), it designed an order fulfillment engine from the ground up to handle hundreds of thou-sands of SKUs and swings in demand that can range from 30,000 units a day to as many as 500,000 units dur-

ing peak periods such as Black Friday, Cyber Monday, the Final Four, the Super Bowl and the World Series.

The key to the system, Chisholm says, is a non-replenishment based order fulfillment model that provides for an extremely flexible and scalable fulfillment process. While many fan favorites are always stocked, the facility has no conventional reserve pallet stor-age. Instead, inventory is stored in one of four different sized bins in a four-level high mezzanine that takes advan-tage of 42-foot clearance in the center of the building. The mezzanine has 1.1 million pick faces and space for 15 mil-lion units. All new receipts of merchan-dise goes straight from receiving to a pick face ready for immediate picking.

On the fulfillment side, a robust wave planning tool aggregates orders into 45-minute batches of work that are picked and conveyed to a put wall area for multi-line packing and a sepa-rate work area for single line orders. There are 60 single-line processing sta-tions and 60 put wall pods; each pod can handle an estimated 75 orders,

By Bob Trebilcock, Executive Editor

In its new Ohio distribution center, sports apparel distributor Fanatics has created a

state-of-the-art e-fulfillment center.

Fanatical e-fulfillment

for a total 4,320 orders at a time in the multi-line area.

Finally, the facility features a state-of-the-art lighting system (see sidebar, p. 23) that is not only delivering signifi-cant energy savings but also delivered an $800,000 tax credit.

While the facility has been live for roughly 10 months, it is processing more units per hour at higher units per hour (UPH) shipped and with improved

about



GraphicCaption Feature

customer service levels than had been originally planned, says Chisholm. “Less than a year into the new facility, and we’re already planning on an expan-sion to keep up with growth,” he adds.

The “wow” factorThe Ohio facility was the most recent example of Fanatics’ remarkable growth over the last nine years. The business was launched as a family-owned retailer

with brick-and-mortar stores in two malls in Jacksonville, Fla. The owners added an e-fulfillment business in the back-room of one of the mall stores to service snowbird customers who lived in other parts of the country for half the year.

As the online portion of the busi-ness grew, Fanatics secured licensing agreements with colleges and univer-sities to create their Web stores and handle their fulfillment. Ultimately,

the company built a 540,000-square-foot conventional distribution cen-ter in Jacksonville. Then, ownership changed hands. Today, Fanatics is a Top 50 Internet Retailer, and it powers the e-commerce sites of all major profes-sional sports leagues, and major media brands such as ESPN, NBC Sports, CBS Sports and FOX Sports as well as more than 200 collegiate and profes-sional team properties.

Chris Cone/Getty Images

Paul Chisholm, vice president of logistics,

Fanatics



In 2011, following the acquisition of FansEdge, Fanatics developed growing pains. In addition to the Jacksonville property, it was working with a 3PL as well with a fulfillment center in Kentucky. “We wanted to get our dis-tribution under one roof so we could control our customer experience from packaging presentation to door-to-door cycle times and build out a network to complement our Florida DC and improve service levels to other parts of the country,” Chisholm says.

After working on a network analysis with a consulting firm, Fanatics brought in another firm to design the new net-work. The process included the identi-fication of potential locations for a facil-ity to serve the Northeast, Midwest and Mid-Atlantic. The firm used data such as the location of Fanatics’ vendors, inbound transportation costs, the loca-tion of the customer base, wage rates, labor availability and real estate costs in its analysis. In early 2012, it identified the Frazeysburg location. The location

would allow Fanatics to reach its target customer base largely by using ground delivery services.

By summer 2012, a deal had been struck for the facility and a systems integrator had been retained to design a fulfillment system for the space. One of the first steps in that process was to dismantle and remove everything but the shipping sorter from the facility.

The Fanatics team set several goals for the new design.

First, and perhaps most important, was the “wow factor,” as Chisholm refers to it. “I’ve been in the e-com-merce business since 1999,” he says. “In this market, it’s all about com-pressing the cycle time from when the customer orders at home until the car-rier rings the doorbell with their pack-age. We strive every day to exceed our customers’ expectations in this regard. We’re trying to stay on the leading edge in the wow factor, and we want to do it with a big SKU base and extremely high order volumes.”

That meant the facility had to hold a large SKU base and as many as 15 mil-lion units of inventory. Plus, it had to be scalable to maintain customer service levels while putting out 500,000 units a day during peak periods. For exam-ple, Fanatics does 40% of its business in the fourth quarter, with traditional spikes during Black Friday and Cyber Monday. However, they also have sig-nificant spikes during major sporting events like the Final Four, the World Series and the Super Bowl. “Our sys-tem is designed to get orders received today out before the last carrier leaves tonight,” says Chisholm. “That’s how we wow the customer.”

Finally, Fanatics wanted to get as physically close to the customer base as possible to cut down on ground trans-portation times and costs.

Eliminating reserve storage The key to making it work, Chisholm says, is a non-replenishment based model that eliminated reserve storage. Regardless of whether an item is a one-time buy or a replenishment item, each individual SKU is systemically driven to the ideal location based on velocity, weight and cube.

However, when new receipts are received in the DC, the receipt is bro-

Once order waves are created, associates pick items to totes in the four-level mezzanine (top right). Totes for multi-line orders are conveyed to a put wall area enabled by put-to-light technology (bottom left). The facility features 60 put wall stations that can process 4,320 orders at a time.



ken down on the receiving dock and prepared for putaway directly into a pick location. First-time items to the facil-ity are weighed and cubed to capture storage and shipping dimensions. The receiver also notes important SKU pro-file characteristics, such as whether an item is fragile or is conveyable, or is able to be sorted through the put wall. Other services, such as adding bar codes or bagging or folding a product, all happen in the receiving area. Once those pro-cesses are complete, items are scanned into one of four different pick bins; all of the bins are 24 inches deep, but vary in width from 4 to 16 inches. The bins are then loaded onto putaway carts that are transported by vertical reciprocal con-veyors (VRCs) to the right level in the four-level pick mezzanine.

“By preparing everything for a pick face on the receiving dock, we elimi-nate all of the tasks and labor associ-ated with replenishment activities,” says Chisholm. “That way no one is standing around during peak waiting for a replen-ishment task to be completed. And, 100% of our SKUs and units are in a pickable, active pick location with high unit SKUs being located in several stor-age bins. We also have eliminated fulfill-ment-related order cancellations almost to zero because we know exactly how many items were put into a bin before

we put them into a pick location.” All vendor errors are identified at receiving rather than when the case is opened during a replen-ishment task.

The process, how-ever, requires a very large number of pick faces. To manage picking across so many SKUs and locations, the picking mezzanine is divided into storage zones. For example, the NHL is in one zone and the NFL in another zone. Another zone is dedicated to the nine top college teams and holds 1.4 million units.

The picking process is driven by a robust wave-planning tool and is based on discrete batch picking to totes. Order pickers receive instructions on their RF guns and pick to one of six totes on their pick cart. When a tote is complete, it’s placed on a takeaway conveyor and diverted to either the single-line processing area or the multi-line put wall area located on a mezzanine over the docks.

In the multi-line area, put walls are enabled by put-to-light technology. Each pod includes a wall that resem-

bles an old-fashioned cubby for shoes or other small items with openings for 75 orders. With 60 pods, or put wall stations, the multi-line area can process 4,320 orders at one time. On one side of the put wall, an associate removes and scans items from a picking tote. Lights then indicate where in the put wall those items should be placed. On the other side of the wall, lights alert another associate when all of the items for an order are ready to be packed.

The display indicates how many items should be in the order and what type of shipping container should be used. The associate packs the items into the shipping container and then conveys them to a services area where the order is finalized for shipment. “Using the put wall process, our associ-ates are averaging 400 to 500 puts per hour,” says Chisholm.

Eight months after going live, Chisholm says the facility is exceeding the initial expectation in terms of effi-ciency rates. In fact, the company plans to bring many of the new technologies deployed in Ohio to their original fulfill-ment center in Jacksonville next year. “The company also has plans to expand

Shipping containers are sorted on a sliding shoe sorter to a carton fill and sealing area and are then conveyed to the shipping sorter.

The new Fanatics DC is not just efficient at filling orders. It is also

energy efficient thanks to a state-of-the-art lighting and safety solution (Hy-Tek Material Handling, hy-tek.net). “This was a beautiful, Class A building,” says Paul Chisholm, Fanatics’ vice president of logistics. “But, it was 12 years old and had the old sodium vapor lighting.”

As part of the redesign, every light in the facility was removed, re-engineered, redesigned and retrofit-ted. A total of 7,628 new light fixtures; 18,140 lamps and 1,944 lighting-related motion sensors were installed in 972 pick aisles. The lights are only on when someone is working in the area. In addition, a completely new fire

protection system was put in place. The result: The facility is one of the

most energy efficient DCs in the Mid-west. What’s more, the project quali-fied Fanatics for a tax deduction in excess of $800,000 under the federal Energy Policy Act, year-over-year sav-ings on energy bills and an incentive check for $134,057 from AEP Ohio, its power supplier.

“In the past, we looked at light-ing as a quality of life issue because employees were in the building for eight to 10 hours a day,” says Chisholm. “Now, it’s also about how green can we be as a company and the savings we’re realizing in energy costs while ensuring a first-class work-ing environment for our associates.”

Lighting up the savings



E-fulfillment by designFanatics distribution center was built to minimize storage and maximize picking across more than 500,000 SKUs.

The key to Fanatics’ distribution center, which was designed from the ground up as a pure e-fulfillment center, is something Paul Chisholm, vice president of logistics, describes as a non-replen-

ishment based model. That means there is no reserve pallet storage in

4

Four-levelmezzanine

1 Receiving

2 Receivingstations

3 Vertical reciprocating conveyors

17 Shipping

16

18

High-speed cartonshipping sorterPolybag

sortation system

5 Transport conveyor

8Conveyor

7

Multi-line ordersprocessing area/

Put wall

11

10

1213

14

Take-awayConveyor

Singles orderprocessing area

Value-added

services

High-speedrouting sorter

9Sorter

Carton fill and seal area

15Print-and-apply area

160,000-square-footmezzanine area

4 Four-levelmezzanine

Order sortationsystem

6

Fanatics, Frazeysburg, OhioSIZE: 514,000 square feetPRODUCTS: Professional and college sports apparel and productsSKUs: 510,000 THROUGHPUT: 500,000 units a day during peak EMPLOYEES: 250 during non-peak periods, up to 1,200 during peakSHIFTS PER DAY/DAYS PER WEEK: 3 shifts, 7 days per week

the network with a facility to serve the West Coast in the near future. Finally, the Ohio facility is large and flexible

enough to handle Fanatics’ double-digit growth. “We already have an expansion plan to grow from 60 put-to-light pods

to 80 pods,” he says. “Most importantly, we have the ability to control our own destiny.”



the facility. Instead, items are prepared on the receiving dock for putaway into one of 1.1 million pick faces in a four-level mezzanine serviced by vertical reciprocal conveyors (VRCs).

Receiving: Merchandise is received (1) at the dock in truckload, less-than-truckload and parcel deliveries. After a carton count at the dock, pallets and cartons are sent to one of 85 receiving stations (2). The receiver opens the car-ton and scans merchandise to receive against the purchase order in the facil-ity’s warehouse management system (WMS). If an item hasn’t been carried before, it is cubed and weighed to cap-ture dimensional information that will be used for storage and shipping. The receiver also captures any important characteristics about the product, such as whether it is conveyable, fragile or nestable. Once received, the product is scanned into one of four different sized storage bins to maximize the stor-age cube in the mezzanine. The storage bin is then scanned onto one of four shelves on a putaway cart. When all the shelves are full, the cart is moved to a staging area, ready for putaway.

Storage: An associate initiates the storage process by scanning the license plate bar code label on a cart. The sys-tem directs the associate to one of six VRCs (3) that will take him to the right level on the four-level mezzanine (4) for that product. When the associate reaches the level, he scans the first tote on the cart and is directed to a storage location. The associate pulls out the empty bin and scans the new bin into the storage location. The inventory in the bin is now available for fulfillment.

Picking: Fanatics’ WMS creates picking waves based on 45 minutes worth of work. Each wave consists of multiple pick lists that represent 45 minutes worth of picking activity for a picker in the four-level mezzanine (4). Whenever pos-sible, the wave planner aggregates orders so they are picking like orders with like SKUs. Orders with multiple items are placed in one type of tote, while single

line orders are placed in another. Packing: Once the items have been

picked to a tote, they will go to one of two packing areas on a 160,000-square-foot mezzanine level. Multi-line orders are conveyed (5) and sorted (6) to order assembly pods in a put-to-light area (7); single line orders are conveyed (8) and sorted (9) to a singles order processing area (10). Both areas have 60 process-ing stations.

Multi-line orders: Totes for multi-line orders are conveyed to the put-to-light area featuring a put wall (7)—a cubby area that can be accessed by asso-ciates working on both sides of the wall. On one side of the wall, an associate takes a tote off a divert line, scans the license plate bar code label, and places the tote on a wire stand in front of the put wall. The associate then removes and scans each item in the tote. Lights on the cubbies indicate where the item should be placed. Once the tote is empty, the associate grabs the next tote and starts the process all over again.

Lights on the other side of the put wall indicate when an all of the items for an order are ready to be packed. In addition to displaying the num-ber of items for the order, the system also indicates what type of shipping container or bag the item should be packed in. Once packed, the order is placed on a takeaway conveyor (11)

and sorted to a value-added services area (12) based on additional required services. For example, fragile items are bubble wrapped and placed back on the conveyor. All cartons ultimately are routed through a high-speed rout-ing sorter (13) to the final station for packing slip, dunnage (14) and the print-and-apply area (15) for address label application. This area consists of eight dunnage lines where void fill and the packing slip are added to the box. Once the box is folded and taped, it travels downstream where it is scanned one last time to initiate the print-and-apply process for shipping labels. Finally, it is conveyed to the high-speed carton shipping sorter (16)where it is weighed on an inline scale and sorted to an outbound carrier in the shipping area (17).

Single-line orders: Single-line orders are diverted to one of three packing lanes in the singles order pro-cessing area (10). Each lane has 20 stations for a total of 60 packing sta-tions. An associate scans the tote and then removes and scans the item. Once the system generates a packing slip, the item is placed in a box and conveyed downstairs to one of two shipping sort-ers—either the carton shipping system (16) or a poly bag sortation system (18). From there, the orders are sorted into an outbound carrier (17). �

System suppliers

SYSTEM INTEGRATION: World Source Integration, world-source.com

CONVEYOR, SHOE AND BI-DIRECTIONAL BELT SORTATION: Automotion, automotion.com

POLY-BAG SORTATION SYSTEM: Intralox, intralox.com

SLIDING SHOE SHIPPING SORTER: Dematic, dematic.com

VERTICAL RECIPROCATING CONVEYORS: Pflow Industries, pflow.com

WAREHOUSE MANAGEMENT SYSTEM: Fanatics

WAVE MANAGEMENT, WAREHOUSE CON-TROL & LIGHT-DIRECTED PICKING SYSTEMS: Pyramid Controls, pyramidcontrols.com/software

CUBING AND WEIGHING: Cubiscan, cubiscan.com

MOBILE COMPUTING: Datalogic, datalogic.com

LIFT TRUCKS: Raymond, raymondcorp.com

RACK STORAGE SYSTEMS: Elite Storage Solutions, elitestoragesolutions.com

MEZZANINE PLATFORM: Wynright, wynright.com

NETWORK ANALYSIS: Fortna, fortna.com

NETWORK DESIGN: The Austin Company, theaustin.com

LIGHTING AND FIRE SAFETY SYSTEMS: Hy-Tek Material Handling, hy-tek.net

W


hen it comes to automated storage and picking technologies, “no single size fits all requirements,” says Dan Boone, qual-ity manager for Plasser American Corp., a manufacturer of maintenance equipment for the railroad industry. “We’re using the best tool for the job.”

Boone was referring to his selection of vertical lift modules (VLMs) and a pick-to-light order fulfillment solution to man-age $16 million worth of service parts in a Chesapeake, Va., manufacturing and distribution facility (see p. 29). New auto-mated storage technologies like shuttles were likely on every distribution center manager’s wish list during the holiday sea-son. Yet, when it comes to space and cost per storage unit, carousels still have a lot to offer in the right application.

“With the right product line, order profile and application, carousels should be considered as part of the solution in a blended system,” says Don Derewecki, a senior consultant with St. Onge Company.

Historically, the right application has been maintenance parts to support a pro-

duction line; spare and service parts dis-tribution; kitting; and put-to-light or pick-to-light order fulfillment in some retail applications. For instance, carousels have been effectively used to consolidate pick-ing of slow-moving parts. Because they can be enclosed, carousels are a good choice in high-security applications. They can also be independently climate controlled for product that is sensitive to temperatures or humidity. Most importantly, they’re not a one-size-fits-all solution, but a component of a broader system.

Let’s make the case for carousels. Steady versus sexy: Carousels aren’t

sexy, but they are steady. “Carousel tech-nology has been perfected over decades,” says Ed Romaine, chief marketing officer for Integrated Systems Design. “They are relatively easy to maintain, and they now have the best of today’s controls.” What’s more, they work well in distribution envi-ronments where space and productivity are at a premium. “A horizontal carousel will take up 70% less floor space than con-ventional storage for the same amount of

By Bob Trebilcock, Executive Editor

New storage and picking technologies are stealing the limelight, but horizontal and vertical carousels and VLMs still have a place in the tool kit.

The case for carousels

MODERN equipment report





inventory,” says Romaine. “If you’re picking slow- to medium-movers, the sweet spot is 250 to 550 lines per hour.” That can be increased if you stack units or add multiple picking pods.

Keep it simple: Order fulfillment has become much more complex. However, applications where a simple, high-density, space-saving automated storage technol-ogy fits the bill still exist. “We do not see carousels in fast-moving e-commerce appli-cations,” says Tim Archer, a sales training manager for Kardex Remstar. “However, carousels deliver an attrac-tive cubic-foot-to-square-inch ratio, and it’s a simple storage method.” Hospitals, for instance, are adopting horizontal and vertical car-ousels in their central stor-age areas, where the value of the inven-tory is high and space is limited.

Balancing productivity gains against the cost of those gains: “In

a typical Pareto distribution of slow-, medium- and fast-moving SKUs, you can often get the best bang for your buck with a horizontal carousel,” says

Tom Coyne, CEO of System Logistics. “There may be a little more walking compared to a mini-load or shuttle sys-tem, but carousels eliminate the walk-ing associated with a conveyor-based picking system.” On the other hand, a carousel doesn’t require a conveyor to deliver a tote to a workstation, which can reduce the cost of the solution. Why haven’t carousels gotten more love lately? Coyne attributes to the intro-duction of competing technologies, like shuttles, just as the carousel industry went through a shakeup. “As the new technologies are maturing, some cus-tomers are evaluating carousels versus shuttles and mini-loads,” Coyne says. “We could see a comeback of carousel technology.”

They can be highly automated: For end users looking for high degree of automation, horizontal carousels can be stacked on top of one another and equipped with extractors that automati-cally remove totes or cases and deliver them to a takeaway conveyor, much

End users looking for a high degree of automation can stack horizontal carousels on top of one another. Extractors then automatically remove totes or cases for delivery to a takeaway conveyor, like crane-based solutions.

Horizontal carousels (shown) and VLMs take up considerably less floor space than conventional storage and deliver items directly to order selectors.



Two years ago, Plasser American Corp. faced a challenge at its Chesapeake, Va., plant: Business

was good. A manufacturer of high-end machines that maintain, straighten and strengthen existing railroads and transit systems, Plasser needed more space for production and finished goods ware-housing. “Our choice was to build a new production building or tighten up stor-age in the warehouse,” says Dan Boone, quality manager. “Production wanted to consume some of our service parts stor-age space rather than build.”

One of the areas targeted for space reduction was a 35,000-square-foot stock room that held more than $16 mil-lion in spare parts. Roughly two-thirds of the 18,000 stock keeping units (SKUs) were stored in a two-story mezzanine with 19,000 square feet of bin shelving that occupied 4,875 square feet of floor space. Seals, small parts and electronics were stored on the upper level and bush-

ings, bearings, valves and machined parts on the lower level. The remaining 5,000 SKUs, comprised of the largest and bulki-est parts, were stored in a bulk storage area that took up 18,000 square feet in

the stock room. Boone believed they could find a better way to store that material.

“Our warehousing system had been static for a number of years,” he says. “Given the opportunity to upgrade, we wanted to see what other tools were available on the market.”

The solution was to replace the mez-zanine bin system with eight vertical lift modules (VLMs) that hold 13,000 of the 18,000 SKUs. Each VLM unit measures just more than 9 feet wide and 10 feet deep. In all, VLM spare parts storage now occupies just 1,440 square feet of floor space—a 70% savings in floor space.

The solution also features a light-directed, goods-to-person order picking area in the center of the units, where parts are delivered directly to the order selec-tor. Since order selectors no longer walk to pick locations, picking labor has been reduced by 20% and order pick accuracy has increased from 98% to 99.7%.

For the remaining open floor space, Boone chose a high-density, mobile shelv-ing system that can handle large, heavy-duty parts. The system includes seven mobile rack carriages: Each carriage is 8 feet wide, 32 feet deep and up to 18 feet tall with the ability to carry 16,000 pounds per upright. The carriage aisles can expand like an accordion to accom-

Making the most of all the tools in the toolboxTo free up space, Plasser American Corp. replaced a two-level storage area with vertical lift modules and mobile shelving. The result: a 70% reduction in the stockroom footprint and a 20% reduction in labor.

like crane-based technology. “There are cost/throughput issues to consider,” says Coyne. “An automated carousel system can provide better throughput than a mini-load. However, mini-loads are bet-ter at sequencing the delivery of prod-uct.”

Still drawbacks: Carousels aren’t right for every application. Fast-moving SKUs are better suited to a shuttle or a pick-to-light mezzanine. What’s more, it’s not efficient to pick and replenish at the same time—something that can be readily done with conventional pick-ing, a mini-load or a shuttle. But, as

Derewecki says, if you do the analysis, “you should look at all the viable alter-natives and in many cases, carousels are a viable alternative.” �

Companies mentioned in this articleINTEGRATED SYSTEMS DESIGN: isddd.com

KARDEX REMSTAR: kardexremstar.com

ST. ONGE COMPANY: stonge.com

SYSTEM LOGISTICS: systemlogistics.com

The eight VLMs in Plasser American’s stock room maintain an inventory of 13,000 SKUs valued at $16 million in just 1,440 square feet of floor space.

mmh.com


modate an order selector or a lift truck and then contract after-ward for high-density storage. When completed, the warehouse was able to release approximately 10,000 square feet of floor space to production. “We learned that there are more tools in the toolbox than just shelving and racking,” says Boone.

Redesigning the space In the old configuration, the stock room was split into two sections. Smaller parts were stored in the front section while the back section was reserved for storing larger parts. The second floor of the mezzanine was used for seals, small parts and electronics.

Picking was highly manual. Using a list of printed labels, an order selector walked through the mezzanine to each part location to collect the required parts. Generally, one worker picked one order at a time but larger orders could be picked by two people by simply dividing up the labels. In that case, one worker picked the small parts and another picked the large parts. They combined the parts into one order in shipping.

As part of the process, selectors had to bend down low or reach up high to access parts. If a part was stored on the second level of the mezzanine, they had to carry them down to the first floor to fill an order. “The ergonomics had room for improvement,” says Boone.

To combat high humidity, machined and electronic parts were stored in anti-rust bags or coated with a preservative that had to be cleaned off before the parts could be put into use. That process resulted in additional labor costs.

The new storage solutions addressed each of those con-cerns. For one, Plasser was able to remove the mezzanine and store all parts on one level.

To address environmental concerns, Boone brought in a local HVAC contractor to install dehumidifiers to control the air within each VLM unit and create positive pressure. When the shutter doors open to deliver a tray to an order selector,

During the order fulfillment process, parts are delivered to the picking station at an ergonomic height. Lights direct the order selector to the right part location.

mmh.com


clean air blows out of the unit and prevents dirty air from entering. “We haven’t eliminated all anti-rust bags and preser-vatives, but we have lessened their use and we’ve extended the life of the materials inside the VLMs,” Boone says.

Finally, the combination of goods-to-person delivery of parts and a software- and light-directed picking process improved the ergonomics and improved accuracy. In the new process, parts are labeled during the receiving process with a bar code that identifies the part and receipt numbers.

When an order is ready for fulfillment, pick labels are delivered to both the VLM area and the bulk area. On aver-age, 60% of the picking activity takes place in the VLM area.

When the VLM operator initiates a pick, the VLMs move to retrieve the parts required for that order. Using a cart, the operator travels from VLM to VLM. At each unit, the operator is directed to the exact location of the part by lights that display the part number and quantity to be picked. Pick labels are attached to each part as it is picked and added to the order. When complete, the order waits at the VLM area for any additional parts from the bulk area before it is picked up by shipping or production.

In addition to the improvement in productivity, inventory accuracy and cycle counting have been improved. At the end of 2012, the VLM inventory variance was just $500, or 0.01% of misplaced inventory. And, cycle counting now takes half the time.

The wow factorAccording to Boone, assigning the right operator to the VLM system was a key to its success. “To get the most from these machines,” he says, “you have to have someone who will take ownership of them.”

Rather than choose a veteran who was well-versed in warehousing, Boone chose a young associate who liked tech-nology. “We felt it was easier to teach warehousing concepts to someone who was comfortable with technology than it was to train someone who was comfortable with conven-tional warehousing how to use the new technology.”

In addition to improved operations, the system is also used as a selling tool. “When customers come in, they see we have a clean, compact storage area using automated technologies, bar coding and pick-to-light,” he says. “There’s a wow factor that gives them the confidence that we can support their service requirements.”

Despite the advantages of automation, Boone believes that conventional storage methodologies have a place in the warehousing tool box. “We have conventional static racking in other parts of our warehouse and production operations,” he says. “No one size fits all requirements. We’re using the best tool for the job.” �

System suppliersVLMS: Kardex Remstar, kardexremstar.com

MOBILE SHELVING: Spacesaver, spacesaver.com

Rack it. Track it. Reuse it.

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Phone: (800) 546-4993Email: [email protected]: www.rehrigpacific.com


MODERN best practices

Robotic solutions are designed to automate mundane tasks while reacting quickly to changing conditions.

ood and beverage distribution is a highly competitive busi-ness. In an effort to stay ahead of the pack, operations are striving to cut costs and improve customer service levels. These initiatives are driving leaner approaches to invento-ries, staffing levels and fulfillment speeds while companies strive to achieve regulatory compliance.

A product’s limited shelf life, strenuous manual labor and the proliferation of stock keeping units (SKUs) are all common challenges to food and beverage operations. These pressures are prompting many facilities to deploy enhanced software for more visibility, automation for repetitive tasks and improved storage capabilities for better space utiliza-tion. Solutions in each of these categories have seen rapid improvement in recent years as both large and small opera-tions push suppliers for innovation.

But it’s not just about doing the same thing faster or more accurately. Trends like store-ready sequencing, just-in-time production and end-to-end supply chain consider-ations are changing the role and performance metrics of the warehouse. In the past, a manufacturer might produce a large volume of product, store it, ship it in the manner most convenient for the warehouse, and perform weekly cycle counts to see what’s left. Now, production is increasingly tied directly to the store shelf, and the warehouse’s ability to fulfill orders as quickly, efficiently and accurately as pos-sible is critical to the success of the organization.

FBy Josh Bond, Associate Editor

Built on a software foundation, the targeted use of automation is helping warehouses improve themselves, their supply chains and the customer experience.

Food and beverage distribution:

A healthy part of a balanced supply chain


Inventory: Less is moreGiven the perishable nature of many food and beverage products, it makes good sense to shorten the time between production and consumption to prevent the likelihood of expiration. In the past, production lines might run until the warehouse or specific SKU was full, building in a safety stock to allow for product loss and prevent stock-outs. However, this practice is rapidly disappearing.

“There is much more building to order,” says Gina Jones, business development manager for Power Automation Systems. “Now it’s about how to best get the product to the customer on time, in full, in the smallest amount of time. Long gone are the days where warehouses have an endless supply of product.”

Software solutions are a critical component to stream-lining the supply chain from production to shelf, according to Matt Wicks, vice president of controls and software for Intelligrated’s manufacturing systems division. “The more you understand about consumption in the stores,” he says, “the better you can fulfill those orders, trim inventory and remove waste.”

Within the four walls, warehouse control systems (WCS) are proving to be an effective way to help provide inventory control. Jim McLafferty, senior account manager for W&H Systems, says a WCS helps collect data and provide real-time reports for managers and, potentially, customers. “You can update your inventory status based on what you’re doing

right now,” he says. “In the old days, daily inventory review would be a dream. A facility might do cycle counts on a weekly basis.”

Real-time inventory control is also valuable for regulatory compliance, especially in the event of a recall. Software can instantaneously direct an automated system to not release a specific SKU, and the same software can locate a lot ID anywhere in the supply chain.

Software supplies hard numbersWCS, in conjunction with a warehouse management sys-tem (WMS) and enterprise resource planning (ERP) sys-

Automated systems can increasingly address the growth in both mixed case pallet building and label free handling.



tem can all share data back and forth to improve demand planning and visibility across the entire supply chain. Taking it one step further, software can enable distributed order management, allowing companies to fill or ship orders from any-where in the supply chain, including the manufacturing facility, warehouse opera-tion or retail store.

“The entire delivery system has changed,” says John Barry, vice presi-dent of sales and marketing for ITW Warehouse Automation. “All the work is getting pushed back to the warehouse and that’s where the efficiencies have to get better.”

With an end-to-end view of the sup-ply chain, it’s easier to see how changes in warehousing and fulfillment can improve efficiencies elsewhere. “In the old days, a DC han-dled things the way that was efficient for them, not what was best for the store, McLafferty says. “The idea was to get it out the door and let someone else handle it from there. Today, most enlightened companies realize the benefit of store-ready sequence.”

With a reduction of inventory and increased customer demand for mixed-SKU, store-ready pallets, the ability to become nimble and process an order quickly relies on good information as well as effective materials handling solu-tions. “This puts pressure on the manufacturer to expend more effort—and therefore money—on filling orders,” says Sean O’Farrell, market development director for Dematic. “Manufacturers are exploring automation to help reduce the costs to process an order while increasing customer satisfac-tion with accurate, high-quality, store-ready orders.”

Storage: Golden retrievalGranular data about the location and movement of goods might precede and help justify the installation of an auto-mated storage solution, or it might be a natural byproduct of such an installation. Either way, automated storage and retrieval systems (AS/RS) can help ensure the right product quickly goes to the right place while often dramatically reduc-ing the required storage space. For instance, McLafferty says he has seen customers save a third to a half of their space by going to a high-density system. That could postpone the need for a new building by as many as 10 years.

At the very least, a facility accustomed to floor stack-ing should consider racking, says Dan Labell, president of Westfalia Technologies. With floor stacking, it might be nec-essary to move 12 pallets to get to the one you need in the back. Racking creates more discrete storage lanes, so that if

stored four high and four deep, there are 16 pallets in one bay with access to four discrete lanes.

Utilization and inventory accessibility are much better when racked, adds Labell. Floor stacking storage will result in utilization of about 75%, but creates a lot of re-warehous-ing, or unproductive moves. “A lot of money is spent trying to do more with the space than is practical,” he says. “The customer is trying to get from 75% to 85% utilization, but they pay a penalty in double or triple handling, or end up with aisle storage. They do get more inventory in the cube, but it comes at an operating cost. Customers are surprised all the time when they realize how many wasteful moves they’ve been making.”

With an AS/RS, on the other hand, it’s common to achieve 90% utilization, even in multiple deep configurations. Single deep systems average closer to 100%, says Labell. A case-handling AS/RS creates narrow aisles with high density and discretely handles each unit to reduce damage. Automation also provides easy tracking of first-in, first-out (FIFO) or first-expired, first-out (FEFO).

As business grows, it is possible to expand automated stor-age systems with additional storage modules. Having already invested in the automation, additional storage locations are relatively inexpensive. Whether automated or not, if storage locations are linked with actual production and consumption rates, a warehouse does not need to be full just for the sake of utilization. Labell says, “The thinking is that more storage will result in more inventory, but that’s not necessarily the case if it’s well managed.”

Automation: Changing the multi-channelIn addition to automated storage, technologies such as robot-ics, automatic guided vehicles (AGV) and goods-to-person

The use of automatic guided vehicles (AGVs) has helped some facilities boost productivity, flexibility and savings.

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picking are gaining traction in food and beverage applica-tions. Although the multi-channel revolution is in its early stages in this segment, food and beverage operations are adapting successes elsewhere in the industry to help them improve everything from depalletizing to picking, sortation and repackaging.

“Multi-channel’s variety of order profiles can create havoc in the order fulfillment process, leaving some companies to duplicate inventories and increase costs,” says Dematic’s O’Farrell. “Some industry leaders are leveraging automation to address large retail format, small retail format, e-com-merce and home delivery, with systems that can store, pick, buffer, sequence and palletize automatically.”

Robotic palletizing will only continue to grow, adds ITW’s Barry, who notes significant improvement in the dexter-ity of robots in mixed-case applications. “In the past, you might have all these good practices to control your inven-tory, retrieve and present it safely, accurately and efficiently, then you’re forced to throw a lot of people at it at palletizing,” he says. “Not anymore. I’ve seen one application where two robots replaced 15 people.”

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product based on colors or logos on the consumer packaging.Wicks offered the example of a candy maker who wanted

to separate Halloween candy from standard versions. The vision system was configured to recognize the pumpkin on the packaging and sort accordingly. It was later calibrated to find snowflakes for Christmas.

“The industry is starting to think of vision outside of tradi-tional view,” says Wicks. “Vision used to be a quality inspec-tion application. Now, we’re using it much more intelligently. Instead of asking ‘is this the right thing or not,’ you can col-lect a variety of data and open up lots of opportunities for the system to use that information.”

Some of the same vision systems are enabling AGVs to extend their reach within a facility, according to Mark Longacre, marketing manager for JBT. Five or more years ago, Longacre says AGVs were most common in the food-processing area, replacing conveyor and sortation or divert-ing. “Now we see an explosion of interest in end-of-line applications, linking with a palletizer, wrapper, storage and retrieval or loading on a trailer,” says Longacre, who says one customer deployed 11 AGVs and was able to reassign of 25 full-time positions. “Anywhere they can support routine material movements, AGVs have continued to shine.”

Case picking automation has tended to be an investment

best justified by large and sophisticated operations. But Barry suggests advances in software are lowering the thresholds. “Right now, it might cost $8 million to $13 million to invest in case picking automation. But everyone has gotten so much better at smaller solutions. People are soon going to want to invest $1 million in a system and enjoy all the same benefits.”

Smaller satellite locations will benefit from this transi-tion, even as the level of automation is set to increase on a large scale in mega facilities, says Barry. Here, automation will reach all the way from truck unloading to truck loading, he says, with a five-fold increase in automation approaching lights-out facilities. �


Companies mentioned in this articleDEMATIC: dematic.com

INTELLIGRATED: intelligrated.com

ITW WAREHOUSE AUTOMATION: itwwa.com

JBT CORPORATION: jbtcorporation.com

POWER AUTOMATION SYSTEMS: powerautomationsystems.com

W&H SYSTEMS: whsystems.com

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Cloud computing, mobility and workflow combine to make LMS solutions stronger tactical solutions for everyone in the warehouse.

Tech-driven revolution labor management

he market for labor management system (LMS) software could be in for a boost from consumer-driven technologies such as mobile devices and cloud computing. While many larger warehouses use LMS to track, manage and optimize labor, the software is sometimes perceived as too costly to deploy for smaller operations or as more of a niche solution for larger operations willing to expend the effort necessary to analyze labor trends against engineered standards.

But thanks to technologies such as mobile devices and cloud computing, LMS solutions are shaping up as solutions that are easier to deploy and ones that deliver more tactical-level punch to warehouse supervisors and associates.

LMS solutions are used to track and manage workforce productivity and utilization in a warehouse. For example, they look at how long it takes to build a kit or how many picks per hour are typical for a given zone or product type. Some LMS solutions incorporate engineered standards stud-ies, but LMS may also draw labor-related data from a ware-house management system (WMS).

LMS has been adopted by far fewer organizations than WMS. According to Modern Materials Handling’s 2013 Software Survey, WMS adoption stood at 57% among

MODERN information management


respondents, while LMS was at 24%. Of course, WMS is seen as vital to executing activities in a warehouse, whereas in the past, LMS had a reputation of being more a back-ward-looking system used to fine-tune labor performance.

Some observers in the supply chain execution (SCE) software community say that technologies such as smart phone and tablets, as well as cloud delivery, could be just what LMS needs to make further inroads by making it more impactful and easy to deploy. “I think labor manage-ment, like a lot of other supply chain management applica-tions, is tracking toward cloud-based solutions,” says Steve Simmerman, senior vice president with TZA. “The cloud allows us to scale our solution from traditional upper-tier customers down to the small- to medium-sized businesses.”

Easier entry pointCloud solutions deliver software functionality as a service over the Internet so that the user company doesn’t have to install servers. This lowers the bar for entry, which can be impor-tant for smaller companies or for multi-site rollouts, says Simmerman—though to some extent, it comes down to a com-pany’s approach to information technology (IT). “Some com-

in the works for




panies are aggressive at adopting cloud-based solutions,” Simmerman says. “But we still see other companies struggling with it—they are still dipping their toes in the water. So it really comes down to a customer preference for how they want to manage their IT.”

Currently, says Simmerman, roughly 25% of TZA’s LMS deals are going cloud-based, but in nearly every cus-tomer engagement, the cloud is being seriously assessed as an option.

Other suppliers also report interest in cloud-based LMS. Chuck Fuerst, direc-tor of product strategy for HighJump Software, says he sees cloud-based LMS increasing in popularity.

For one thing, says Fuerst, cloud-based solutions are now widely adopted and proven for other software systems such as customer relationship manage-ment. Another important factor is that cloud solutions are well suited to sub-scription pricing, which makes it easier for companies to get into a solution. “For smaller businesses, it removes some of those upfront costs, and can mean more predictability in terms of their expenses, while still giving access to the same technology that previously tended to be preserved only for larger companies,” he says.

Some vendors, however, aren’t so sure that cloud LMS will become pre-dominant. Peter Schnorbach, senior director for product management with Manhattan Associates, says that for its many Tier 1 customers, deploying LMS on premise isn’t a major chal-lenge because they typically have the IT staff and data center capacity to do so, especially for a relatively smaller solution type such as LMS. “Most of our customers who are looking at cloud deployments would target the bigger applications that would allow them to scale back in a major way in their data centers,” says Schnorbach.

Mobility meets LMSThere is seemingly universal agreement among LMS suppliers, however, that the market is ready for mobile-enabled

LMS. This differs from simply putting a few LMS metrics on a radio-frequency (RF) terminal, which has been done for many years, to coming up with apps or dashboards geared for users of smart phones and tablets.

According to Schnorbach, mobile LMS functionality will be “transfor-mative” for LMS users because it will enable better real-time access to infor-mation. Mobile LMS would allow a supervisor to do things like clock in a worker who forgot to clock in, answer a question from an employee who needs data from the LMS, make an entry into the system, or view metrics and per-haps congratulate someone who has just exceeded a performance goal—all with-out leaving the warehouse floor.

“With mobile devices like tablets, supervisors can interface with employ-ees and answer their questions in real time, which maximizes the time they can spend on the warehouse floor,” says Schnorbach. “And that’s what you want. You want your managers out on the floor, not glued to PCs in their offices.”

For managers, smart phones and especially tablets are an ideal way to access metrics and dashboards from a

LMS solution, says Fuerst. Meanwhile, he adds, the devices used by frontline workers are evolving, in some cases, to be hybrid devices that combine a smart phone with traditional scanning and data collection capability.

“We are seeing this whole shift in the hardware platform that people are using to access information from,” says Fuerst. “That’s pushing the software vendors to offer a solution that works well for iPads and smart phones.”

LMS vendors are having to deal with the user interface challenges of devel-oping for many device form factors, as well as mobile navigation paradigms such as touchscreen and swipe inputs. In some cases, LMS vendors are using HTML5, a next generation of hypertext markup language that support mobile Web browsers, so that mobile apps can be more easily developed that can work across multiple device platforms.

Schnorbach believes vendors will have to rethink their approach to the “user experience” people get from a SCE solution now that mobile devices have become pervasive. “We have to start rethinking how we release the product in terms of the user experience

Mobile devices make it easier to access dashboard views or do quick updates while out on the floor. And some suppliers believe such devices are shaping expectations around how application enhancements can be designed and distributed.



and how that will translate to a mobile device,” he says.

HighJump’s Fuerst says it’s possible that, in the future, smaller pieces of mobile-enabled LMS will be delivered much like consumer-focused mobile apps—on an app store. While HighJump hasn’t pieced out LMS functionality on an app store yet, it’s an approach that might work given broad acceptance of the model, says Fuerst. For sure, he adds, there is interest at HighJump in breaking LMS into smaller chunks of functionality or measurements to “allow you to get access to the benefits sooner—to sort of stair step into it.”

Tactical-level punchAnother LMS trend is the use of work-flow and alerting to make solutions more proactive. These technologies make LMS a more effective operational app, rather than as solution for assess-ing labor performance against stan-dards, according to Ross Elliott, execu-tive vice president and chief technology officer with Accellos.

For Accellos’ mid-market focus, says Elliott, labor management must deliver operational benefits. While a handful of its customers have opted for a full-blown LMS with an alliance, the more common way its customers get LMS functionality is through features built into the WMS, such as a “Pivot Grid” tool that can look at orders across mul-tiple dimensions and compares that with labor needs and capacity.

“We view [labor management] as another piece of information that ware-house managers have at their disposal to help them run a warehouse more effectively,” says Elliott.

Alerting and workflow make labor data more proactive, adds Elliott, by automati-cally notifying users of thresholds that have been exceeded, such as a kit that should take one hour to build, suddenly starting to take two hours to build.

Some users also display labor met-rics onto monitors so that everyone can see the trends, says Elliott. The whole idea with alerting, workflow, as well as

key performance indicators and mobile functions, is to turn labor data into actionable insights, he says. “We want to build a foundation so that our customers can really drive their business,” he says.

Ashley Furniture, a home furniture manufacturer and retailer, has worked toward giving LMS more tactical impact, according to Jon Kuerschner, vice presi-dent of supply chain systems for the Arcadia, Wisc.-based company. It has deployed a LMS from HighJump at five distribution centers, making role-based metrics available to everyone on the floor.

At first, the company used large video monitors located near shipping lanes to display LMS metrics. The trouble with that, says Kuerschner, is that it created a “gawker effect” with associates traveling to the boards to view details. The deployment was sub-sequently tweaked so that the monitors display only high-level trends, while more role-specific trends are available

to associates on their RF-terminals. While Kuerschner says the LMS

also is used in the back office to assess performance, there is definitely a ben-efit to letting associates see how their performance is stacking up against goals by role, area and task.

“What we find is that by putting that real-time information out there on a tactical basis, on the end users screens, it’s the peer pressure that really drives the productivity we are looking to gain,” he says. “Ultimately, it’s all about reduc-ing your operating expenses.” �

Some end users push select LMS metrics right to RF devices so associates can keep tabs on how their performance stacks up on a near real-time basis.

Companies mentioned in this articleACCELLOS: accellos.comHIGHJUMP: highjump.comMANHATTAN ASSOCIATES: manh.comTZA: tza.com


anagers have long appreciated the lift truck’s role as an essential component of a productive warehouse. In recent years, the growing adoption and capa-bilities of fleet optimization technol-ogy are exposing even more potential for value and savings. As visibility into an asset’s total cost of ownership has improved, more operations have real-ized the impact fleet financing meth-odologies can have on productivity, operator satisfaction, costs and effi-ciency. Unfortunately, an organization’s procurement and operations func-tions are often disconnected, working toward entirely different objectives that might not be mutually beneficial.

“In an ideal world, the operations group evaluates equipment, defines

requirements and specifications, iden-tifies needed accessories, and pro-vides usage data to the procurement group to accurately tell that story,” says Bill Buckhout, manager of Raymond Leasing for the Raymond Corp. Ideally, the procurement group then takes that data and puts it into a request for pro-posal that includes what the operations group needs. “In reality when procure-ment takes over, it’s not necessarily a good thing, and unfortunately that’s happening more and more. Those silos are not breaking down; if anything they’re being more reinforced.”

A disconnect between lease terms and actual use can lead to overage pen-alties, unnecessarily high payments or limited options for process improvement

MBy Josh Bond, Associate Editor

The structure of an equipment lease can have a significant impact on operations—and there are ways to ensure the impact is a positive one.

Invest in productivity with lift truck financing

MODERN special report


throughout the term. “You don’t want to be in a position where your fleet dic-tates your process,” Buckhout says. Yet as more companies explore flexible leasing arrangements that allow them to main-tain a state-of-the-art fleet, the concept of “total cost of ownership” is creeping into the discussion, prompting many to bridge the gap between purchasers and lift truck operators.

Rotation, retirement and returnsOne of the primary benefits of leasing is the establishment of a replacement cycle for lift trucks at the end of their economic life. This strategy can pre-vent a customer from throwing good money after bad to maintain an aging piece of equipment, but it also ensures

the fleet is equipped with the most up to date safety, efficiency and ergonomic features.

These features obviously benefit operators, but Eric Gabriel, senior manager of marketing for Mitsubishi Caterpillar Forklift America, says you can find financial benefit in increased productivity. Comfortable operators experience less fatigue, fewer back problems and more consistent perfor-mance throughout a shift.

In addition, equipment has become more reliable in the past 10 years, driving maintenance costs downward. “Energy consumption, productiv-ity, efficiency and ergonomics are all critically important to reducing costs,” Gabriel says. “And these factors are

very measurable. We know exactly how much each has improved.”

Over the last 12 years, three gen-erations of equipment have been on the floor, says Raymond’s Buckhout. A 10-year-old lift truck is a dramatically different piece of equipment from a new one, where energy savings alone could differ by 20% to 40%. “Most of the advancement has occurred in the last five years,” he says. “Leasing is the tool that lets you keep up with that.”

At the end of the term, more than 90% of lift equipment is turned in, according to Matthew LeSage, manag-ing director of vendor finance at GE Capital, Equipment Finance. “People typically choose that option because they want to get new equipment—with



One of leasing’s primary benefits is the establishment of a planned replacement cycle for lift trucks.

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all of the latest bells and whistles — that’ll continue to be a workhorse day in and day out,” he says. “They don’t want the hassle of dealing with aging equipment that may start to have main-tenance issues.”

In some cases, such as Tier 4 diesel

emissions standards, new equipment could better achieve regulatory com-pliance, according to Brian Markison, director of North American sales for UniCarriers. Also, the cost and avail-ability of parts gets easier with newer equipment, he says. A generation or

two away, that availability starts to diminish.

Determining the value of bells and whistlesIt is common to see support for ergo-nomics, efficiency and productiv-ity tools on the operations side of the business, but because those tools come with a cost, some procurement groups might not value them as highly. Jeff Bailey, director of Crown Credit Company, says both positions should take all factors into account before acquiring equipment. “What the pur-chasing agent sees as the ideal terms for the company might not take into


account features and benefits that could ultimately make it a better choice,” Bailey says. “I do see more companies start-ing to realize that cheaper up front is not necessarily better. Both positions are looking at total cost of ownership.”

For customers unsure about the value of add-ons and features, renting equip-ment for an extended test drive has become a popular way to find the right truck. “I’m see-ing more and more of a trial approach. Dealers are increas-ing rental fleets with the hope they can convert rental cus-tomers to leases or purchases,” says Jonathan Loyless, assistant finance manager for Hyundai Forklift. “Operations use the various options that sound good and then see whether they are

worth it. They collect feedback from employees, and see if it’s a good fit for business. Then, they see if they want to lease, purchase or move on to a differ-ent lift truck.”

The test drive can expose complaints as simple as the placement of pedals or gear shifters, which Loyless says can be a deal-breaker for some. He recommends a trial period of between one to three months to collect the necessary data and feedback. He also offers a word to the wise: Be sure a lightly used machine enters a lease based on its actual cur-rent condition as opposed to what it was when new. If the test drive consumed less than 100 hours, the residual is not likely to fluctuate. But if it reaches 500 hours, it could be

A thoughtfully designed lease agreement should allow for changes in fleet size, composition and utilization throughout the term.

mmh.com

possible to discount the residual and secure lower payments.

Bundled leases and service contractsAbout 25 years ago, Tina Goodwin says Yale Materials Handling Corp.’s captive finance company used to see about 70% of all equipment purchased outright, and 30% leased. That has changed to 80% leases and 20% full payout, says Goodwin, who is director of financial services for Yale.

Unless a lift truck will be used very lit-tle, it is often best to lease it. And unless a facility has a very efficient and effective in-house maintenance department, it is often best to purchase a service package as well. These separate products can be bundled into a single, fixed monthly pay-ment for easy billing, but the benefits of

pairing them extend much further.“If I were a customer, my preference

would be to have a maintenance con-tract in place with an authorized dealer so I don’t need to worry if I’m meeting the return terms at the end of the lease,” says Goodwin. “If the two are bundled, the upkeep of that equipment is a shared responsibility. If customers do in-house maintenance then they’re on their own.”

Markison says a fairly large number of customers remain who do their own maintenance, but those operations tend to put as much as 50% more parts on their equipment. “It appears on the sur-face you can save money doing it your-self, but that’s often not the case,” he says. “Those who do a very good job are few and far between.”

Gabriel estimates that at least 50%


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We asked our experts for tips and trends that could help fleet owners find the right lease agreement while avoiding classic pitfalls.

Tina Goodwin, director of financial services for Yale Materials Handling Corp.:

• Do not commoditize leasing companies. Work with a finance part-ner who has a good understanding of lift truck usage and your specific application.

• Design the contract for flexibility. If the application, equipment needs or usage change, be sure you can adjust accordingly.

• The biggest trend we see is unlimited hours for applications under 2,500 hours per year. The customers aren’t sure today how many hours they will be running their equipment in the future. We might quote a five-year lease at 1,500 hours per year. The customer wants that payment but with unlimited hours. That’s when the dealer’s understanding of the applica-tion can inform what the upper end of those hours could be and take a chance.

Bill Buckhout, manager of Raymond Leasing for the Raymond Corp.:

• Warehouse reconfiguration

and process improvements can be held up by rigid equipment leasing approaches. Negotiate for the “what-if.” If usage increases dramatically, or the process or products change, find out if you can change or replace equipment early and at what cost.

• Allow for the option of an end-of-lease purchase in the contract, although you are not always encour-aged to exercise it.

• If you bundle the lease and the maintenance, make sure you can cancel the maintenance product sepa-rately from the lease. Don’t buy into something that ties you to both for the entire term of the contract. If for some reason you have an issue with a maintenance provider or if usage specs change, you want to be able to adjust the maintenance arrangement.

Jonathan Loyless, assistant finance manager for Hyundai Forklift:

• If downtime is critical, pursue the option to guarantee a technician can be on site within 12 to 24 hours, or a provision for replacement lift trucks.

• The end of the year is often the best time to get deals on equipment as dealers try to lower the inventory. Be careful that the options for the previous year model don’t stray too far from the new model’s features.

What to include in the lease contract

mmh.com

of leases include some form of main-tenance and that number is growing. Leases are ideal for people uninterested in being in the business of fleet manage-ment, he says. The goal of the lease is to consume the majority of the economic life of the truck over the term, and then replace the unit before maintenance costs get out of hand. “When those costs become too much, the economic life is over,” he says. “Therefore, leasing and maintenance go hand in hand.”

In addition to capturing information on a driver’s safety and performance, the use of telemetry devices can help minimize maintenance costs in a few important ways, according to LeSage. Before entering into a lease agreement, the data these devices provide can help customize the term and the payments,

particularly for hourly billing associ-ated with usage-based leases. Perhaps most importantly, “telemetry also allows users to proactively identify service and maintenance requirements before a truck goes down.” �


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If there isn’t much difference, you might as well take the older, cheaper one.

Eric Gabriel, senior manager of marketing for Mitsubishi Caterpillar Forklift America:

• It is absolutely critical to conduct a thorough application and site survey. If you underestimate annual usage, you get overtime charges. If you over-estimate, you’re paying for nothing. The lease structure, number of units, type of equipment and capacity all come out of the site survey.

• I would rather see a customer with a three-year lease and an option to extend it two years than a customer with a five-year lease. The cost is not terribly different, but the flexibility is very valuable.

Brian Markison, director of North American sales for UniCarriers:

• It’s common to exclude avoidable damage and abuse, so get a firm defini-tion. “Normal wear and tear” is open to interpretation. Perhaps you set a certain dollar amount before the main-tenance contract stops covering it.

• Consider pooling usage hours across a fleet. Then you don’t need to worry about rotating high- and low-usage lift trucks. If you expect 2,000 hours per year for five years, at the

end some will have 8,000 and some 12,000. With pooled hours, it’s a wash.

• If you have a certain amount of idle time, you might be able to skip the payments during that time. This is sort of a middle ground on the spectrum of pay-by-the-hour arrangements.

• Make sure you’re reading the fine print. One customer with a fleet of 35 lift trucks misunderstood what they were signing, thinking it was a lease where at the end they own the prod-uct. But it was a fair market value lease with an option to buy at the lift truck’s remaining value. The customer didn’t expect the costs at the end of the term.

Matthew LeSage, managing direc-tor of vendor finance at GE Capital, Equipment Finance:

• If the customer is concerned about keeping cash on hand, entering into a short-term fixed renewal typi-cally allows you to save 50% or more off the original lease payment.

• If you expect to use your lift truck less than the industry standard 2,000 hours, you can usually lower your lease payment and your overall cost for the equipment. Usage is usu-ally priced in 500-hour increments so users can categorize their expected usage into 500-,1,000- or 1,500-hour buckets.


MODERN productivity solution


Labels printed on-demand increase accuracy, productivity, flexibility and organization.

Care-A-Lot Pet Supply has been providing cus-tomers with pet supplies since 1989, either

through its catalog, online store or retail stores located in Newport News and Virginia Beach, Va. After testing and deploying a series of mobile workstations, the company realized a productivity increase of more than 40%.

The company’s 50,000-square-foot distribution center in Virginia Beach stores more than 2,800 products and maintains all supplies offered by the company’s catalog, online store and retail stores. The challenge was to increase productivity and improve efficiency while receiving products from suppliers and filling orders.

“In the past, our employees had to take all of the ‘to be received’ or ‘to be shipped’ products from their location to the computer and then to their next des-tination,” says Paul Camping, inventory and receiv-ing manager for Care-A-Lot. “This process was cumbersome and inefficient. We receive and ship thousands of products a day, and we needed some-thing to help streamline the process.”

The company tested mobile workstation carts

(Newcastle, newcastlesys.com) in the DC by scan-ning in new products at the receiving docks. The carts were then moved to inventory pallets where products were pulled, scanned and prepared for the shipping department. The carts were equipped with a 750-watt inverter, 20-amp charger, two 100-amp-hour batteries, a keyboard tray, an LCD post holder, a CPU holder and one additional shelf.

Since using the carts, worker productivity increased by 40%. Employees also dedicate less time to product movement. Due to the mobility and wireless ability of the carts, employees can own larger work areas, which has allowed for a more prolific work environment. “The cost sav-ings of the carts were immediately apparent,” said Camping, who says workers also use the carts as label makers for pallets and general organization. “It saves time when you can print out a label while standing in front of it instead of walking across the warehouse to a workstation, printing it out and walking back.”

The carts were so successful that more were pur-chased for the company’s retail store locations. �

Distributor streamlines processes with mobile workstations


MODERN productivity solution


An industrial machine manufacturer wanted to improve its associates' access to tools and sup-

plies. As the business grew, the volume, density and variety of products manufactured increased. The company's standard shelves and workbenches were no longer sufficient, and it soon became apparent that associates were spending too much time hunt-ing for what they needed. By installing a series of modular workstations, the company was able to boost productivity while saving space.

The workstation supplier (Creform, creform.com), designed and built “u-cells” in place of the standard workbenches. Right-sized and matched to the workstation’s capacity requirements, the u-cells are composed of plastic coated steel pipe and metal joints. They can be quickly and easily altered in a matter of a few hours.

“We’re very pleased with the improvements we’ve made,” says one wiring shop supervisor. “This type

of project supports our lean manufacturing initia-tives, and the time we spent planning the layout of the cell will pay dividends for many years.”

The cells' ergonomic principles minimize reach distances and times, increasing productivity while helping minimize worker fatigue. All tools and sup-plies are now within arm’s reach of the sit-down work cell. Standard hardware units have been inte-grated into the work cell for small parts, with reels of wire and heat shrink placed above and below the work surfaces. Pegboard on the back of the cell keeps tools easily identifiable and within reach.

With the implementation of the new u-cells, productivity has improved by 30% while required space has been reduced by 20%. When production volumes are high the cells can support extra person-nel. When volumes are low and personnel require-ments are lowered, the u-cells support the ability for an operator to multi-task. �

Custom work cell boosts ergonomics and organization in less space.

Modular workstations put all tools within arm’s reach


n just about two months, the Georgia World Congress Center Hall B will be set to welcome 25,000 visitors to Modex 2014—the industry’s newest expo for the manufacturing, distribu-tion and supply chain industries, spon-sored by MHI.

Attendees will find more than 750 exhibits from industry, commerce and government spread throughout the 230,000-square-foot show floor (an increase from 180,000 square feet at the inaugural Modex in 2012). Also included in the program are three keynotes and more than 90 educa-tional sessions over the four days.

Modern checked in with George Prest, CEO of MHI, to get a sneak peek into what’s being planned for the show, which is being held from March 17-20, 2014.

“It’s shaping up to be an incred-ible show,” said Prest. “We’ve moved from Hall C to Hall B to accommo-date the demand for exhibit space, as well as to add 15,000 square feet to co-locate the inaugural Supply Chain & Transportation USA Exhibition & Conference (SCT).”

To further make the event a one-stop destination, registered attendees not only gain full access to Modex, but also free entry into the SCT exhib-its. There, four solution centers—transportation, logistics, industrial real estate, and the future of supply chain—are located inside the Modex show, to the left of the main entrance.

“Adding the SCT show gives attend-ees more opportunities to maximize their time and reinforces Modex’s posi-tion as the largest supply chain show

With more than 750 exhibitors, three keynotes and an extensive educational program, Modex 2014 is adding 50,000 square feet of show floor space. Here’s a guide to every inch.

Modex 2014: See it all

Show Preview

SHOW HOURSMonday, March 17 10:00 am - 5:00 pmTuesday, March 18 10:00 am - 5:00 pmWednesday, March 19 10:00 am - 5:00 pmThursday, March 20 10:00 am - 3:00 pm

I


Attendees will find more than 750 exhibits from industry, commerce and government spread throughout the 230,000-square-foot show floor.

in North and South America,” Prest added.

Although this is only the second Modex show, the event’s growth wasn’t a surprise to MHI, he said. “It vali-dates all the research we did before we launched Modex that said supply chain professionals were looking for an event like this.”

The growth in attendance and exhibit space mirrors the growth at MHI’s other major show, ProMat. MHI held its space draw for ProMat in December 2013, setting a new record of 229,375 square feet sold—repre-senting 75% of the planned exhibit area of 305,000 square feet, said Prest.

“Our industry is at a really strong place in the economic cycle right now. Companies are looking to invest in pro-ductivity,” he added. “We saw industry

growth of 8% in 2013, and we’re pro-jecting double-digit growth for 2014.”

Because of that, Prest anticipates that attendees will be walking the exhibit aisles with project plans in hand. They’ll also be looking to get new ideas about how to improve their sup-ply chain efficiencies. To accommodate that, MHI is placing a strong empha-sis on creative solutions, hosting the second installment of the Innovation Awards for new and existing products.

“We debuted the Innovation Awards at ProMat 2013, and it was a huge success with more than 75 entries,” said Prest. “With the speed of change happening exponentially, attendees have told us in exit surveys that they specifically come to MHI shows to seek out new ideas about how they can increase productivity and maximize their bottom line.”

Additionally, he added, Modex has 13 co-located education partners pre-senting events at the show, the largest being the Georgia Logistics Summit, held Tuesday and Wednesday upstairs from the Modex show floor.

Information about all Modex-related events can be accessed from the official Modex app. The app offers an inter-active map, exhibitor search, educa-tional sessions search and information about the keynotes. Attendees can also access their personalized agenda using the mobile app. Available free at both Android and Apple app stores, down-loading information can be found at www.Modexshow.com/app.

To make it easier for attendees to find the solutions they need, the Modex 2014 show floor is divided into four solution centers:

MODERN show preview


Modex will once again offer an extensive educational program including 90+ free on-floor educational sessions. The sessions are housed in nine separate theaters located on the far right of the exhibit hall. The seminars run from 10:30 a.m. to 4:30 p.m. Monday and Tuesday, and on Wednesday from 10:30 a.m. to 3:00 p.m.

“The on-floor seminars are presented by industry experts in materials handling and logistics solutions,” said Carmen Murphy, education coordinator of MHI and manager of the Modex educational seminars. “It’s a unique opportunity for attendees to learn more about the latest material handing technologies from exhibitors, industry groups and research institutions.”

Topics range from best practices reviews to maintenance to metrics. Detailed abstracts with key takeaways are included in both on modexshow.com and the Modex app. Each theater holds 100 participants, and it’s first-come/first-served with no standing room allowed, added Murphy.

In conjunction with its report release in January, the U.S. Roadmap for Material Handling & Logistics (mhlroadmap.org) will present “Material Handling and Logistics: The Road to 2025” from 12:45 to 1:30 p.m. on Tuesday in Theater H. This session includes William Ferrell, professor and associate dean of the Department of Industrial Engineering at Clemson University and one of the four authors of the Roadmap. Ferrell will lead a panel discussion of thought leaders. Attendees will get a visionary look at how the industry will change between now and 2025, as the panel identifies the trends and transfor-mations ahead. The challenges of future workforce develop-ment will be a special focus.

Additionally, several industry groups will be presenting the latest insights into their technologies. These sessions typically feature three panelists from different companies discussing new developments, applications and uses for the equipment represented by their group. “These industry group sessions always generate lot of interest and high attendance levels,” Murphy said.

Industry group sessions are as follows:

MONDAY• “2014 Automation: See the Latest & Greatest Modex and

the Industry Has to Offer in 45 Minutes,” presented by the Automation Alliance, 10:30 a.m. to 11:15 a.m., Theater G

• “Industrial Work Platforms, Equipment Platforms and Mezzanines,” presented by the Storage Equipment Manufacturers Association (SMA), 12:45 p.m. to 1:30 p.m., Theater H

• “New Products, Trends & Benefits in AS/RS,” presented by Automated Storage/Retrieval Systems (ASRS), 2:15 p.m. to 3:00 p.m., Theater F

• “Justifying Order Fulfillment Automation Required for Peak via Off-Peak Utilization,” presented by Order Fulfillment Solutions (OFS), 3:45 p.m. to 4:30 p.m., Theater D

• “A Study of Solutions to Ergonomic Challenges in Material Handling,” presented by Ergonomic Assist Systems and Equipment (EASE), 3:45 p.m. to 4:30 p.m., Theater F

TUESDAY• “Best Omni-Channel Practices & Trends,” presented by

Integrated Systems & Controls (ISC), 11:15 a.m. to 12:00 p.m., Theater B

• “Interesting New AGV Applications: Where to Start,” pre-sented by Automatic Guided Vehicle Systems (AGVS), 12:00 p.m. to 12:45 p.m., Theater C

• “Considerations for the Planning and Use of Industrial Steel Storage Racks,” presented by Rack Manufacturers Institute (RMI), 12:00 p.m. to 12:45 p.m., Theater G

• “Material Handling and Logistics: The Road to 2025,” pre-sented by U.S. Roadmap for Material Handling & Logistics, 12:45 p.m. to 1:30 p.m., Theater H

• “Design for Maintenance,” presented by Conveyor & Sortation Systems (CSS), 2:15 p.m. to 3:00 p.m., Theater H

• “Robotics and Automation,” presented by the College Industry Council on Material Handling Education (CICMHE), 3:00 p.m. to 3:45 p.m., Theater A

• “Simulation Modeling and Analysis of Facility Logistics and Material Handling Systems,” presented by the College Industry Council on Material Handling Education (CICMHE), 3:45 p.m. to 4:30 p.m., Theater D

WEDNESDAY• “Asset Protection—Guarding Solutions for Industry,” pre-

sented by the Protective Guarding Manufacturers Association (ProGMA), 10:30 a.m. to 11:15 a.m., Theater C

• “Rack Storage—Specification, Standards, Codes and Certification Protocols,” presented by the Rack Manufacturers Institute (RMI), 12:00 p.m. to 12:45 p.m., Theater C

• “Easy C/VLM Cost Justification: Calculate the True Cost and ROI of Carousels and Vertical Lifts,” presented by Automated Storage/Retrieval Systems (ASRS), 12:00 p.m. to 12:45 p.m., Theater E

• “The Omni-Channel Challenge—Technologies to Leverage Inventory for On-Time Accurate Order Fulfillment,” pre-sented by Order Fulfillment Solutions (OFS), 12:00 p.m. to 12:45 p.m., Theater G

• “Radio Controls—Making a Reliable Connection,” presented by the Electrification and Controls Manufacturers Association (ECMA), 12:45 p.m. to 1:30 p.m., Theater B

• “Plugging the Holes in Your Extended Supply Chain,” pre-sented by Supply Chain Execution Systems & Technologies (SCE), 12:45 p.m. to 1:30 p.m., Theater D

• “Optimizing Your Available Storage Space,” presented by the Storage Equipment Manufacturers Association (SMA), 12:45 p.m. to 1:30 p.m., Theater F

• “Building the Business Case for Automation,” presented by the Automation Alliance, 1:30 p.m. to 2:15 p.m., Theater A

• “Managing Your Integrated System Project for Success…or Failure,” presented by Integrated Systems & Controls (ISC), 2:15 p.m. to 3:00 p.m., Theater D

• “Answering the Multi-Channel Shipping Paradox: How to Handle Cartons and Bags,” presented by Conveyor & Sortation Systems (CSS), 2:15 p.m. to 3:00 p.m., Theater HAll of the PowerPoint Presentations will be captured in PDF

format and synchronized in a Flash file with audio recordings of each session. These files will be posted to modexshow.com after the conclusion of the show.

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• Manufacturing and Assembly: Featuring automated assembly support, intelligent devices, robotics, ergonomic and safety equipment, workstations, light-rail and other assembly assist equipment and systems for the manu-facturing environment.

• Fulfillment and Delivery: Showcases solutions for traditional or e-commerce order fulfillment, order picking and packaging, third-party logistics, warehousing, distribution or transportation.

• Information Technology (IT): Highlighting supply chain software solutions, RFID, auto-ID and data col-lection, transportation management systems, manufacturing execution systems, logistics execution systems, enterprise resource planning and order

management systems.• The Knowledge Center: Offering

resources to educate and build aware-ness of what the materials handling and logistics industry has to offer the supply chain as a whole.

Keynotes talk trends and technologiesThis year, Modex features three key-note presentations, each offering critical insights from experts into shipping trends, building successful supply chains, and the latest issues and trends in materials handling and logistics.

The first runs Monday from 8:30 a.m. to 9:45 a.m. in the Georgia World Congress Center Hall B’s room B312-314 and features Edward H. Bastian,

president of Delta Airlines. In an address entitled “Shipping Trends for Global Supply Chains,” Bastian will take a look at current and future trends and issues in the global supply chain from both the carrier and shipper per-spectives. He will also offer insights into advanced manufacturing customer needs and potential technology appli-cations. Additionally, he will discuss Delta’s role in global commerce, and share his perspective on future chal-lenges and technologies essential to competitiveness.

Bastian’s speech is presented by the Metro Atlanta Chamber’s Supply Chain Leadership Council. The coun-cil is also sponsoring a moderated shippers’ panel discussion taking place immediately after the keynote con-

The Modex 2014 show floor is divided into four solution centers: Manufacturing and Assembly, Fulfillment and Delivery, Information Technology, and the Knowledge Center.

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cludes. Panelists representing compa-nies in the aerospace, automotive and pharmaceutical industries will exam-ine supply chain challenges, and note opportunities for advanced manufac-turing companies.

Tuesday morning, from 8:30 a.m. to 9:45 a.m. in the Georgia World Congress Center Hall B’s room B312-314, businessman Lee Scott, Walmart’s president and CEO from 2000 to 2009, will detail how to build a logis-tics and supply chain organization that is a market differentiator. As the com-pany’s third-ever CEO—following Sam Walton and David Glass—Scott rein-vigorated Walmart’s mission, transform-ing it into a respected corporate leader on many of the major issues facing today’s global businesses.

Widely regarded as the builder of the best supply chain in retail, Scott will share what it takes to match sup-ply chain performance to a company’s needs: hire the right people and give

them the right experiences. During his tenure, the company emerged as the world’s largest retailer with more than 2.1 million associates and 7,390 retail operations in 16 markets around the world. The company earned the Fortune No. 1 spot six times between 1998 and 2008 and had sales of more than $405 billion in 2009.

Battle-tested in the war to deliver products to consumers at the lowest prices, Scott will offer tips on how to cope with today’s rapid rate of change in an increasingly complex world.

On Wednesday, the final keynote presentation unveils the key findings of the annual MHI Industry Report, conducted in partnership with Deloitte Consulting. The “Preview of the MHI Industry Report—Trends Driving Supply Chain Innovations” will be presented by George Prest, CEO of MHI, and Scott Sopher of Deloitte from 8:30 to 9:45 a.m. in the Georgia World Congress Center Hall

B’s room B312-314. The extensive report on supply chain and materi-als handling trends and technologies draws upon a series of surveys con-ducted in January. Both MHI mem-bers and supply chain end users were asked to verify and rank what each group expects to focus on in the next two to three years. Among the topics explored in the study:

• Supply chain analytics and the tools and techniques companies are using to track performance and identify areas for improvement.

• Mobile supply chains and the use of sensing and data collection tech-nologies across all supply chain areas, including production, inbound and out-bound logistics, inventory management and more.

• 3D printing/additive manufactur-ing technology, its expanded use and its potential impact on manufacturing, logis-tics and transportation.

• Multi-channel fulfillment and its

Modex features three keynote presentations, each offering critical insights from experts into shipping trends, building successful supply chains, and the latest issues and trends in materials handling and logistics. .

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effect on distribution strategies as com-panies strive to provide consistent cus-tomer experience and service levels.

One stop: Modex, SCT and Georgia Logistics SummitYour Modex 2014 registration also grants you access to the first-ever Supply Chain & Transportation USA Exhibition & Conference (SCT). Together, the two events offer access to all the innovative products, services and technologies which bring winning competitiveness to the whole supply chain.

Exhibits are grouped into four solu-tion centers: transportation, logistics, industrial real estate and the future of supply chain, where you can see the lat-est advances and integrated solutions for transporting goods.

SCT exhibitors can be found in the

same hall as Modex exhibitors, to the left of the main entrance to the show. Both shows run concurrently, Monday through Thursday, and share identical hours: Monday through Wednesday, 10:00 a.m. to 5:00 p.m., and Thursday, 10:00 a.m. to 3:00 p.m. More infor-mation about the show is at www.sup-plychainusaexpo.com.

On Tuesday and Wednesday, the Georgia Logistics Summit’s annual event will be co-located at Modex 2014, upstairs in the Georgia World Congress Center’s Hall B. The event requires separate, paid registration available at www.georgialogistics.com.

The Georgia Logistics Summit starts at 9:30 a.m. with check-in and regis-tration. And, Tuesday’s morning ses-sion includes a panel discussion of international business experts from India, Mexico and Japan who will

share insights on partnerships and possibilities in global logistics. The afternoon showcases Georgia’s manu-facturing companies, and a keynote panel reviewing the latest economic growth and expansion developments in the state.

On Wednesday, summit attend-ees will hear updates on the state’s transportation developments in ports, rail, trucking and air cargo. This will be followed by a series of concurrent breakout sessions featuring 15 speak-ers from private industry discussing imports, exports and domestic logis-tics. Wednesday’s lunch keynote fea-tures Kevin Jones, Walmart’s vice president of inbound transportation. A final series of breakout sessions (from 2:00 to 3:00 p.m.) concludes the event, with experts predicting future supply chain developments. �

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Black wire shelving in stock for quick shipmentA line of black wire shelving is in stock for fast delivery. The shelf components have a black epoxy finish created by treating the raw metal with an iron phosphate. The black epoxy is then electrostatically applied, baked and cured to a hard sur-face. Units come in eight different shelf sizes and four post heights to accom-

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Double-sided louvered floor rack holds 500 poundsMeasuring 18 x 25 x 66.37 inches, a double-sided louvered floor rack (Model 30658) holds 500 pounds. The rack sup-ports multiple sizes of the supplier’s line of AkroBins and InSight clear bins for small parts organization and storage. The rack comes in gray and is constructed from 16-gauge, cold-rolled steel for strength and durability. To withstand heavy-duty use, it also has a powder-coated finish. Offered as part of a full line of louvered hanging systems, other models include louvered panels, bench racks and floor racks for multiple storage options. Akro-Mils, 800-253-2467, www.akro-mils.com.

Dynamic storage system uses adjustable pallets, captive handling deviceThe STAK pallet-based storage and han-dling system uses dynamically adjustable pallets (rather than fixed shelves) and a

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To create multi-level storage and high-rise shelving structures in distribution, manufacturing, records archiving and other storage-intensive activities, a line of stair, work platform, mezzanine and shelving products are combined. Storage facility installations can be created in a variety of different configurations up to four levels high. To customize each instal-lation, an assortment of accessories are offered, and products can be finished in a choice of 24 standard powder-coat paint colors. For installations in areas where seismic activity is more likely, a com-plete engineering analysis is conducted to ensure that the structure meets all required safety requirements. Penco Products, 800-562-1000, www. pencoproducts.com.

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Dual-movement racking withstands impacts, seismic eventsOffered as an alternative to conventional racking, the TubeRack system has a dual-movement frame that allows flexibility

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Load and unload two pallets simultaneously with double-wide, drive-in rackThe 2 Wide DI double-wide, drive-in rack system doubles handling productivity by allowing loading and unloading of two pallets at the same time. The high-density storage solution reduces the number of aisles in facility while lowering handling costs. It is constructed of heavy-duty steel and features a flared entry for easy forklift maneuverability. Custom-built to meet unique facility and load specifica-tions, the rack also includes 4-inch wide pallet surfaces for stability. Advance Storage Products, 714-902-9000, www.advancestorage.com.

Dense storage system incorporates textile columns suspended from rackingOffered as a cost-effective alternative to carousels, drawers and shelving, a line of high-density textile shelving columns sus-pended from a racking structure creates a dense storage system for medium- and slow-velocity products. The units inte-grate into existing or new pallet rack, pick modules or rack-supported mezzanines. Durable, flame- and water-retardant, the columns hold up to 240 pounds are con-

Heavy-duty hanger frames support overhead handlingA full line of structural, heavy-duty hanger frames support suspended conveyor tracks used in manufacturing and DCs. Applicable to a variety of industries, these hangers are commonly used in automotive manufactur-ing to transport heavy parts. Lighter-duty versions are ideal for use in large, automat-ed DCs in the clothing and industrial prod-ucts industries. The supplier manufactures mezzanines, racks, conveyor support struc-tures, ladders and other structural steel products. Wynright Structural Solutions, 708-229-8280, www.wynright.com.

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Rack system compatible with existing teardrop style connectionsFully selective to allow immediate access to every pallet load, a line of Tear Drop pallet rack features a center reinforcing rib that provides heavy bracing for added strength and rigidity. To better resist impact, large columns up to 4 x 3 inches may be specified (other column sizes include 3 x 1.625, 3 x 2.25 and 3 x 3 inches). Frames are offered in any height or depth and with multiple column configurations for system

flexibility. The boltless racking can be assembled without tools and is compatible with exist-ing installations from any manufacturer. For fast installations, a rigid, automatic spring lock-ing mechanism (instead of pinch-pin) creates for positive beam-to-column engagement. Ridg-U-Rak, 866-479-7225, www. ridgurak.com.

High-density mobile systems for cooler and freezer storage

The ActivRAC high-density mobile storage system maximizes freezer or cooler storage space without warehouse expansion. By placing existing shelv-ing and racking on a series of carriages that move side-by-side on a recessed rail system, full product access is avail-able whenever needed. Engineered to hold up to 30,000 pounds per carriage and withstand temperatures of -4°F or above, the system is ideal for chemical or pharmaceutical manufacturers or food and beverage distributors. Spacesaver Industrial, 800-457-5468, www. spacesaverindustrial.com.

Looking for more products?Search our database at mhpn.com

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Pull or push up to 5,000 lbs.

Create custom mezzanine using modular cabinets, components Completely modular, a line of mezzanines can be custom-cre-ated around existing space requirements and traffic patterns—with aisle and pass-through modules. When necessary, the system can be easily reconfigured, even when fully loaded. The basic systems consist of five modules that bolt together through pre-existing access holes. Modules include cabinets, a middle-shelf cabinet with head clearance height and space for overflow inventory, a walkway support system, heavy-duty grating that drops into place like ceiling tiles, and stairs and railings. New or existing cabinets from the supplier can also be used to create a mini-mezzanine system with no walkways or grating required. Stanley Vidmar, 800-523-9462, www.stanleyvidmar.com.

Roller rack for carton flow picking operationsPre-engineered, the Roller Rack line of rack and track struc-tures provide carton flow in a variety of storage mediums in order-picking operations. The structures come in light-, stan-dard- and heavy-duty ver-sions, and require less steel than pallet racks. Quick to build and knock down, the racks reduce both freight costs and dam-age. Because inventory is replenished from the back, the pick line in front is not interrupted. The rack pro-vides seven-times denser stock keeping unit (SKU) storage than pallet rack, reducing picker travel time by 80%. Beams measure 1.5 x 3.5 inches and offer 2,000 pounds capacity per pair in 4- and 8-foot lengths. Unex Manufacturing, 800-695-7726, www.unex.com.



1-800-328-8456 www.industrialnetting.com

Free Samples

with RackGuard Containment Netting• Reduce product damage

• Protect people from falling objects• More economical than woven nets

See Us in Booth 1729 at ModexVisit us at MODEX booth 6034

Prevent items from falling off racks with wire mesh panelsContain items that have the potential to fall from overhead racking with welded-wire RackBack panels. The modularly sized panels mount directly to a pallet rack system quickly with mounting holes on 6-inch centers. Provided with flush-mount or offset brackets that allow pallets to overhang the beams, the system is made of 2 x 2 inch, 10-gauge steel welded wire mesh that has been welded into a 1.25 x 1.25 inch, 13-gauge steel angle frame. The panels come in 4- and 5-foot high versions and extend above the top rack beam for complete protection. They may also be installed on hinges to convert the panels into doors for rack enclosure. WireCrafters, 800-626-1816, www.wirecrafters.com.

Protect workers with mezzanine platform safety gateElevated mezzanine platforms in warehouses should be equipped with appropriate safety gates at forklift loading and off-loading areas to safe-guard workers. A variety of gate options that comply with the ANSI MH28.3-2009 stan-dard include an overhead safety gate, double-drop gate and pivot safety gate. Operating similarly to a seesaw, the pivot safety gate works when one side is raised and the other side closes, allowing safe and efficient access by forklifts and per-sonnel. Its cut-to-fit construction adapts to openings from 10- to 3-feet to meet a range of access requirements. Wildeck, 800-325-6939, www.wildeck.com.


FOCUS ON Rack/shelving

SPACS95-8/12

PRESPALL

Export and Domestic Pallet Solutions

LITCO International PalletsExport and Domestic Pallet Solutions855-296-2891 www.litco.com

Which PalletWill You Choose?

Minimize Waste Cut Packaging CoFree of Bugs, MoldTCP and TCA CheReduce Fork Truck

Reduce Shipping CostsIncrease Product ProtectionReduce Shipping Damages

Store, protect and transport heavy parts with portable shelf rackA line of portable storage racks enables easy storage, protection and maneuverability of heavy inventory parts. Featuring seven, five or four adjustable height shelves, measuring 29 x 68 inches, each rack weighs 510 pounds. The heavy-duty shelves hold 250 pounds each for a total weight capacity of 2,000 pounds. Easy to clean and store, the rack features a reinforced base for fork truck handling and large industrial cast-ers for easy movement. To ensure that all shelves are easily accessible, each includes gas-spring assist-ed hinges for fingertip force shelf lifting. Palmer Manufacturing, 937-323-6339, www.palmermfg.com.

Label Holders

[email protected]

classifiedFor classified advertising, or for more information contact: Jennifer Drevline, 847-223-5225, ext. 11, jenniferd@ caseyreps.com

Label Holders

New England/East Coast: Steve McCoy, 508-261-1120; [email protected]

Midwest: Bob Casey 649 N. Barron Boulevard, Grayslake, IL 60030, 847-223-5225; [email protected]

East Coast/Southeast: Greg Bolen, 12600 Hollyhock Lane, Huntersville, NC 28078, 704-875-7977; [email protected]

West Coast: Brian McAvoy, 111 Speen Street, Framingham, MA 01701 508-808-9554; [email protected]

MAGAZINE ADVERTISING REPRESENTATIVES

MODERN 60 Seconds with...


Kevin GueTITLE: Tim Cook Associate Professor of Industrial Engineering, Auburn University

LOCATION: Auburn, Ala.

EXPERIENCE: 20 years in logistics education and research, including service as president of the College-Industry Council on Material Handling Education.

PRIMARY FOCUS: With respect to research, Gue’s focus is on warehousing, materials handling and order fulfillment.

Modern: Let’s start by explaining to our readers just what is the U.S. Roadmap for Material Handling & Logistics and how it came about.

Gue: Just over a year ago, Henrik Christensen from Georgia Tech sug-gested at an MHI meeting that the materials handling industry undertake a roadmap similar to the one he had orchestrated for the robotics industry. The leadership at MHI thought it was a good idea, and they got behind it. Basically, the roadmap is an attempt by “the industry”—meaning everyone from end users to suppliers to educa-tors to NGOs and government—to look out 10 to 15 years into the future and ask, “How should we be prepar-ing?” My experience with companies is that they are often worried about quar-terly results or this month’s sales fig-ures, and sometimes they struggle to sit back and reflect on where things are going. The roadmap is an opportunity for everyone to ask the big questions.

Modern: What was the process? How did the organizers go about collecting the information for the map? And, who participated?

Gue: We wrestled for months about how to do this. Eventually, we decided to hold four all-day workshops, in Atlanta, D.C., L.A. and Chicago, in

which participants provided input. We zeroed in on a process that had partici-pants at roundtables of eight or so dis-cussing four major questions. The first was, “What will life in 2025 look like?” The goal was to get people think-ing about the future with respect to how we move goods, the required IT and planning systems, and workforce issues. Participants included end users, suppliers, educators, NGOs, and a few people from government.

Modern: Why do you think this is an important project?

Gue: This is the first time that anyone is aware of that representatives from all stakeholder groups have gotten together to talk about needs for the future. Personally, I think it could be an important project if it leads to some collaborative solutions to big prob-lems. As the document will describe, there are many future problems that individual companies will be solving simply because of market forces, such as robotic order picking, automated loading of trucks and even, maybe,

home delivery quad-copters. But there is a whole other class of problems that individual companies cannot solve on their own, such as standardiza-tion, large-scale collaboration to reduce costs, and finding and educating the workforce. These problems require stake-holders to work together in new ways. I said “could be” just a moment ago, because the hard work of doing some-thing is still to come.

Modern: When the draft is complete, what to you envision happening with it? In other words, how might our industry benefit from the project?

Gue: As far as tangible out-comes, I would hope to see

stakeholder groups coming together to address some of the specific issues the roadmap identifies, perhaps in workshops or planning sessions. For example, a collection of organizations will have to join forces to address the challenges of tomorrow’s work-force. Also, collaboration was a major theme. Companies will have to come together to see if this can be done on a large scale—or even if there is any stomach for it.

The real challenge will be leadership and initiative. Someone has to stand up and say, “I’ll do it. I’ll organize a workshop to move this or that forward. I’ll put some resources behind it.” We’ll need many champions.

Modern: If I’m a reader and I want to be involved in some aspect of the roadmap, what’s my next step?

Gue: Become a champion! Once the document is out, read it and identify some part that you’d like to get behind. Then I guess you should contact Gary Forger at MHI, who is acting as orchestrator in chief. �

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Fanatical - Modern Materials Handling