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Office Depot:FlexibleautomationPage 20
BIG PICTURE
The robots are coming 26SPECIAL REPORT
Top 20 lift truck suppliers 34EQUIPMENT REPORT
Lift trucks get smarter 40
Brent Beabout, vice president of global network strategy and transportation, Office Depot
®
m m h . c o m
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
August 2010
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The brand new 8-Series 4-wheel AC is loaded with features. Including new Toyota-designed motors and controllers, giving you an all-AC truck with less maintenance, greater travel and lift speeds and improved run times. Bottom line: more productivity. Check out the new 8-Series AC at toyotaforklift.com today. And raise your own bar.
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mmh.com Modern Materials Handling / A u g u s t 2 0 1 0 3
A LEADING SUPPLIER of automated materi-als handling and picking solutions, Finland-based Cimcorp, has acquired RMT Robotics,
a Canadian manufacturer and integrator of robotic materials handling systems. The newly formed group extends its market reach in Europe, Asia and North and South America, offering world-class case picking and advanced order fulfillment solutions, robotic gantry tech-nology and related software and controls, and a line of
autonomous, mobile automated guided vehicles. Both companies will continue to support current product lines, warranties and service contracts. RMT Robotics will continue trading under its cur-rent name as a subsidiary of Cimcorp, retaining existing management and staff.
IN A CONTINUING EFFORT to reach logistics pro-fessionals across the country, the Warehousing and Education Research Council (WERC) announced the formation of a new WERCouncil in North Carolina. Sheila Benny, from Optricity, is the new group president. WERC CEO Michael Mikitka said area WERCouncils are especially important because they
offer education and networking at the local level. “Because the board defines their own local needs, the group can be more responsive to members in the area.” WERC helps local leaders identify speakers, programs and tours that best suit specific needs. As a result, people who don’t travel to national WERC events are able to get the same benefits of the organization.
DAMAGING EFFECTS of the global recession hit the warehouse manage-ment systems (WMS) marketplace hard in 2009, according to ARC Advisory Group. Initial signs of the recession for the WMS market were evident in 2007, and 2008 saw market revenues decline slightly year-over-year. But with implementations often taking several months, ARC explained that backlog of projects protected suppliers’ 2008 revenues until the backlog dried up in 2009. While WMS had a tough year, the SaaS (software-as-a-service) segment, which is comprised of services packaged as part of a leasing model and hosted online, continued to grow at a double-digit pace from a small base. This technology benefits small companies that don’t need to purchase an expensive WMS.
WerCing it in north Carolina
$20.17 billionThe combined industrial lift truck revenue from all companies on Modern’s Top 20 ranking, see story on page 34.
arC says 2009 was tough for WMs, good for saas
dematic group to purchase HK systems
FAST FACT
UP FRONT B r e a k i n g n e w s y o u s h o u l d k n o w
WERC
Cimcorp acquires rMt robotics
DEMATIC, a leading global supplier of integrated materials handling solutions and services, has signed an agreement to purchase HK Systems, a North American automated materi-als handling and software solutions provider. The company says the merger will build a stronger, more responsive company and provide added value and expanded solution portfolios for customers.
“Customers are calling for inte-grated solutions that enable them to move products and information fast, reliably and efficiently through the supply chain,” said John Baysore, president and CEO of Dematic North America. The combined technology of the two companies will further drive innovations that help customers optimize their production and distri-bution operations, officials say.
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mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 0 5
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
Brent Beabout and his team at Offi ce Depot found an edge in a goods-to-person picking solution featuring two different mobile robots.
VOL. 65, NO. 8
DEPARTMENTS & COLUMNS 3/ Up Front 7/ This Month in Modern18/ Lift Truck Tips: Internal combustion
engine-powered trucks44/ Focus On: Pallets47/ Product Showcase50/ Special Section: Corporate profiles58/ 60 Seconds with...
NEWS 9/ CEMA: Booked orders on the rise10/ Toyota marks 20 years of manufacturing in the U.S.10/ Group embraces information age12/ ISM manufacturing index shows positive signs, but warning signs persist16/ Lift trucks in the news
COVER STORYSYSTEM REPORT
20 Office Depot’s flexible automationMobile robotics is powering Office Depot’s new demand-driven distribution center.
24 Putting robotics to workA goods-to-person picking solution managed by 300 mobile robots is at the heart of the new Office Depot distribution center.
FEATURESBIG PICTURE: WHERE BUSINESS MEETS MATERIALS HANDLING
26 The robots are comingRobotic materials handling technology is changing the way we move products in the plant and the distribution center.
PRODUCTIVITY SOLUTION
33 Aetrex puts its best WMS foot forwardWith a new warehouse management system, Aetrex is winning the footrace against its competitors in the shoe business.
SPECIAL REPORT
34 Top 20 lift truck suppliersThe worldwide industrial lift truck industry spent the better part of 2009 in a rut. Sales were down 39%, but the worst may be over.
EQUIPMENT REPORT
40 Lift trucks get smarterNew technologies and usage practices can help you maximize your fleet’s productivity and longevity while reducing your carbon footprint.
60 Seconds with…Jeff Burnstein, page 58
Modern Materials Handling ® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite 200, Framingham, MA 01701. Annual subscription rates for non-qualifi ed subscribers: USA $119, Canada $159, Other International $249. Single copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 USA. Periodicals postage paid at Framingham, MA and additional mailing offi ces. POSTMASTER: Send address changes to: Modern Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited. All rights reserved. (C)2010 Peerless Media, LLC.
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m m h . c o m MODERN MATERIALS HANDLING / A U G U S T 2 0 1 0 7
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Winner Jesse H. Neal
Certificates of Merit for Journalistic
Excellence
EDITORIAL OFFICES111 Speen Street, Suite 200Framingham, MA 01701-1496(800) 375-8015
Michael LevansGROUP EDITORIAL DIRECTOR [email protected]
Bob TrebilcockEXECUTIVE EDITOR
Noël P. BodenburgEXECUTIVE MANAGING EDITOR
Lorie King RogersASSOCIATE EDITOR
Sara Pearson SpecterEDITOR AT LARGE
Roberto MichelEDITOR AT LARGE
Jeff BermanGROUP NEWS EDITOR
Mike RoachCREATIVE DIRECTOR
Wendy DelCampoART DIRECTOR
Daniel GuideraILLUSTRATION
Brian CeraoloGROUP PUBLISHER [email protected]
Editorial Advisory Board
Ron Giuntini OEM PRODUCT-SERVICES INSTITUTE
John HillESYNC
TRANSYSTEMS
Susan RiderRIDER & ASSOCIATES
Ken RuehrdanzDEMATIC
Dr. John Usher UNIVERSITY OF LOUISVILLE
Col. Alan B. Will2D MARINE LOGISTICS GROUP
Brett WoodTOYOTA MATERIAL HANDLING USA
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MICHAEL LEVANSGROUP EDITORIAL
DIRECTOR
THIS MONTH IN MODERN
Whenever a new enabling technol-ogy starts to gain ground in a market, you tend to hear three
distinct points of view concerning its even-tual impact. There’s the “doubter,” who instantly dismisses it; there’s the “cautious manager,” who likes to wait and see how others are putting it to use; and then there’s the “champion,” who quickly embraces it and makes a strong case, right out of the gate, to put the technology to work despite its lack of operational history.
Over the past three years, I’ve spoken at length to supply chain professionals who fall into each of these camps when it comes to materials handling robotics; and quite frankly, each one made perfect sense to me. They spoke from their own unique position concerning the market they serve and the operations they run.
Like most new, highly touted, “game changing” materials handling technologies that earn the front pages of B2B media outlets like Modern, they may be a perfect fi t in some operations while they may never work in others. And, as we learned during the great RFID push, when the initial tidal wave of publicity fades and the market fi -nally grasps its abilities and limitations, new technology tends to eventually fi nd a home as a customized solution for very specifi c operational needs over time.
But it’s imperative to note: Before you fall into any of these camps and race to a conclusion, you need to fully understand the abilities and limitations of the new products that the materials handling robotics manu-facturers are offering the market. And, there’s simply no better way to do this than to read executive editor Bob Trebilcock’s illuminating
feature “The robots are coming” (p. 26). This article is the continuation of a series
we’re calling “Big Picture: Where busi-ness meets materials handling.” In these Big Picture stories, Trebilcock’s reporting and writing breaks out of the traditional “how-to” and “case study” mold to offer an objective, broad-sweeping look at how materials handling technologies and best practices are making an impact on overall business strategy.
This month, Trebilcock documents the robotic manufacturers’ journey into the greater materials handling market, from their introduction at ProMat 2007, through the steady acceptance by the analyst community, right up to the most recent implementations of robotic systems and the manufacturers who are now jumping on board with new innovations.
But most importantly, Trebilcock’s article reports on the practical benefi ts that robotics can bring to an operation if the technology is, in fact, a good fi t. “There’s a lot of hype around robotics today,” says Trebilcock, “and I simply set out to put the market into perspective and allow the materials handling decision makers to decide for themselves what does and doesn’t make sense.”
I highly recommend reading Trebilcock’s Big Picture fi rst and then turning back to page 20 to read this month’s System Report on how Offi ce Depot, one of the earliest champions of robotic materials handling, was able to bend the conservative nature of retail distribution and roll out one of the most impressive robotic DC operations in the country. After digesting these two stories, I’d like to know what camp you fi nd yourself joining.
The robots are here
MMH1008_Editorial.indd 7 8/11/10 1:05 PM
Topic: Getting the most out of your operationImprove the performance of your equipment, staff, and software
What you will learn*
• Increase throughput, uptime, accuracy, performance
• Optimize processes, allow staff to be more productive
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• Improve system performance with upgrades kits
• Discover best maintenance practices, techniques, programs
Who should attend
• Users of any material handling system
• Maintenance Managers
• Operations Managers & Supervisors
• Material Handling Engineers
• Industrial Engineers
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Limited capacity. Sign up now!
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IN ITS LATEST monthly report, the Conveyor Equipment Manufacturers Association (CEMA, www.cema.org) reported that its May 2010 Booked Orders Index was at 129. This fi gure is up three points over April 2010, marking a 2% monthly increase. The May 2010 Index also represents an increase of 18% from the May 2009 Index of 109.
According to Bob Reinfried, CEMA executive vice president, CEMA’s Booked Orders Index uses the equa-tion 1990=100 to measure its current industry statistics. In other words, the baseline calculation uses the fi gure 1990, which was a fairly representa-tive year for the conveyor industry. Numbers to the right of the equals sign gauge where the industry stands in comparison to that year. Therefore, fi gures above the 100 mark indicate growth, while anything less indicates contraction in the industry.
CEMA’s most recent monthly report refl ects growth. Reinfried told Modern that these fi gures are particularly positive in light of the recent economic conditions in the market. Additionally, he said, CEMA members are encouraged by the
CONVEYOR INDUSTRY
THE CONVEYOR EQUIPMENT MANUFACTURERS ASSOCIATION MONTHLY
STATS SHOW BOOKED ORDERS IN MAY 2010 WERE UP 2% OVER APRIL
2010 AND UP 18% OVER THE SAME TIME PERIOD LAST YEAR.
CEMA: Booked orders on the rise
BY LORIE KING ROGERS, ASSOCIATE EDITOR
m m h . c o m MODERN MATERIALS HANDLING / A U G U S T 2 0 1 0 9
Company Briefi ngs | Bob Trebilcock Voice Technology is speaking loud and clear www.mmh.com
Di@blogbest of Modern’s blogs
Modern launches new Pallet & Packaging newsletterModern readers seem to love pallet stories. That’s one reason we’ve launched a monthly pallet newsletter. Executive editor Bob Trebilcock got the idea after visiting with pallet and packaging suppliers at NA 2010 in Cleveland in April. He said, “It won’t be all wooden pallets all the time. In the fi rst edition, I’ll also write about plastic and metal pallets and in subsequent months I’ll look at alternative pallets, like pallets made from paper and composite materials.”
The newsletter will also include information about the products that complement and extend the pallet--everything from palletizing on the front end to totes, containers, dunnage and stretch and shrinkwrap on the back end. Basically, everything that goes into creating the optimal unit load to get your product from point A to point B.
To subscribe, go to: mmh.ehpub.com/info/subscribe, select FREE e-newsletters and fi ll out the request to include Modern Pallets and Packaging Report.
new orders coming in.While booked orders are picking
up the pace, billed orders are down 5.2% compared to the same January through May timeframe of 2009.
What does this mean? Reinfried said, “This is telling me that right now [our members] are knocking down the backlog.”
However, with booked orders on the rise, the trend is changing. “So far this year, new orders are exceeding shipments,” said Reinfried. This is a very positive sign, he added, because at some point in time, these orders translate into billable goods that will ultimately be shipped to customers.
Reinfried said it’s diffi cult to say how long it will take for shipments to catch up to orders, but right now the conveyor industry is moving upward.
According to CEMA, the overall North American conveyor market was at $7.8 billion in shipments in 2008. In 2009, that fi gure contracted to $6 bil-lion. CEMA is forecasting an increase of 2% to 3% for the overall North American conveyor market in 2010.
MMH1008_News2.indd 9 8/10/10 1:26 PM
10 A U G U S T 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
TWENTY YEARS AGO, Toyota Industrial Equipment Mfg., or TIEM, opened its fi rst Toyota lift truck manufacturing plant outside of Japan in Columbus, Ind. In early August, the world’s largest lift truck manufacturer (No. 1 on Modern’s Top 20 lift truck suppliers list, p. 34) commemorated the plant’s 20th anniversary.
The ceremony also celebrated the launch of the new 8-Series, four-wheel electric AC lift truck with a line-off ceremony. The new line of AC-powered lift trucks, which is said to deliver longer runtimes and quicker acceleration for increased productiv-ity, will be manufactured exclusively on the 126-acre, 998,000-square-foot campus.
The anniversary and launch was attended by TIEM’s 600+ associates; Tetsuro “Ted” Toyoda, president of Toyota Industries Corporation; Kazue Sasaki, president of TIEM; Brett Wood, president of Toyota Materials Handling, U.S.A.; along with other Toyota executives and leading Toyota lift truck dealers.
“Toyota prides itself on manufactur-ing products that embody industry leading safety, quality, durability and reliability,” said Sasaki. “During the last two decades, TIEM has achieved a number of manufacturing mile-stones thanks to the support of our customers, dealer body, associates and community. We look forward to another 20-plus years of manufactur-ing excellence in Indiana.”
Toyota has invested $113 million in the Columbus facility, which has built more than 350,000 lift trucks, Sasaki noted. The plant produces more than 78% of all Toyota lift trucks sold in North America.
The zero-landfi ll facility has been recognized by the state of Indiana as a recipient of the 2009 and 2005 Governor’s Award for Environmental Excellence for Five Years Continuous Improvement.
The new four-wheel AC-powered series of lift trucks, which includes a new 5,500-pound model, was designed with input from customers and dealers alike to meet the chang-ing needs of electric lift truck users, which represents the fastest-growing segment of the lift truck market. The segment has grown from 60% to 67% of the market since 2008.
“To meet customers’ needs for increased productivity and ef-fi ciency, we are introducing the most powerful AC electric lift truck Toyota has ever built,” said Wood. “With the 8-Series, Toyota offers our customers improved perfor-mance speeds — including up to 21% faster travel speeds over the previous model.”
SUPPLY CHAIN SOFTWARE
Group embraces information ageTHE IMPORTANCE OF information to the success of supply chains is stronger than ever given economic conditions, according to the Supply Chain Execution Systems & Technolo-gies (SCE) Industry Group of the Ma-terial Handling Industry of America (MHIA, www.mhia.org). This data has been released as a part of the group’s Summer 2010 Quarterly Report, “A Better Information Flow for Improved Supply Chain Execution.” Supply chain execution software and related data capture technologies are a key to creating a smooth, effi cient, cost-effective fl ow of materials. The group
is focused on information as it con-nects every link of a supply chain.
Supply chain execution solutions include enterprise resource planning (ERP), warehouse management sys-tems (WMS), transportation manage-ment systems (TMS), warehouse con-trol systems (WCS), and data capture systems, to name a few.
“The advantage to using data sys-tems and getting information is it will move to scale,” said KardexRemstar’s Ed Romaine, chair of MHIA’s Sup-ply Chain Execution Industry Group. “When business is slow, you can use these systems to fi nd effi ciencies and
LIFT TRUCKS
Toyota marks 20 years of manufacturing in the U.S.
From left: Brett Wood, president of Toyota Material Handling, U.S.A.; Jim Malvaso,
president and CEO of Toyota Material Handling North America; Ted Toyoda, president
of Toyota Industries Corporation; Kazue Sasaki, president of TIEM; and Al Rawson,
president of Atlas Toyota Material Handling.
MMH1008_News2.indd 10 8/10/10 1:26 PM
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reduce labor and inventory. When business is gang-bust-ers they help you meet customer demand and expecta-tions. Information fl ow within the SCE system allows you to work more effi ciently, all the way from a work cell to a WMS and ERP system.”
The SCE group is shifting its focus to evolve with the industry and broaden its scope. In today’s environment, Romaine added, it’s all about gathering and processing information. True success comes from the right combi-nation of moving material and the information systems associated with its movement.
Quarterly reports often highlight current trends. So, what are the trends to watch for? According to Steve Banker, service director of supply chain management for ARC Advisory Group, a couple of trends to watch in WMS are in software-as-a-service (SaaS) and the addition of images to RF scanners. In TMS, Adrian Gonzalez, a direc-tor at ARC, says there’s a movement toward a holistic, end-to-end TMS footprint. And in manufacturing execu-tion systems (MES), Simon Jacobson, research director for manufacturing operation at Gartner, says there’s a need for better connectivity with the enterprise and the rest of the supply chain. “In the past, the supply chain had to respond to manufacturing. Now, manufacturing needs to respond to the supply chain. That’s an important change, and one the MES market is adapting to.”
ECONOMY
ISM manufacturing index shows positive signs, but warning signs persistTHE INSTITUTE OF Supply Management (ISM) has reported that manufacturing activity in July was basically flat compared to June.
The index the ISM uses to measure the manufactur-ing sector, or PMI, was 55.5% in July, which is down from 56.2% in June, 59.7% in May, and 60.4% in April. Any reading that is 50 or better represents economic growth.
ISM’s manufacturing index still over 50%(above 50% = growth)
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July represents the 12th-consecutive month that the PMI is more than 50, coupled with the overall economy on a growth track for 15 straight months.
Norbert J. Ore, chair of the ISM’s Manufacturing Business Survey Committee said in a statement that the manufactur-ing sector continued to grow during July but at a slightly slower rate than June.
“Employment [58.6% in July compared to 57.8% in June], supplier deliveries [58.3% in July compared to 57.3% in June] and inventories [50.2% in July compared to 45.8% in June] improved during the month and reduced the impact of a month-over-month decelera-tion in new orders [53.5% in July compared to 58.5% in June] and production [57.0% in July compared to 61.4% in June],” said Ore. “July marks 12 consecutive months of growth in manufacturing, and indications are that demand is still quite strong in 10 of 18 industries. The prices that manufacturers paid for their inputs were slightly higher but stable, with only a few items on the short supply list.”
Other notable readings from the July report include: • prices at 57.5% compared to 57.0% in June,• backlog of orders at 54.5% compared to 57.0%
in June, and• customers’ inventories at 39.0% compared to 38.0% in
June.Even though the PMI has been down for three straight
months, Ore explained that overall the manufacturing sector is relatively healthy and not hindering the econo-my, despite signs of economic stagnation in recent weeks.
“Last month, consumer readings were not good, and that makes you worry a little bit about what is going to happen in the second half,” said Ore. [Another thing] is second quarter Gross Domestic Product at 2.4% subject to revision. We expect the second half of this year to be not as strong as the fi rst half, so a 2.4% second quarter GDP is worrisome heading into the second half of the year, par-ticularly in regard to what the consumer is going to do.”
When asked about the respective 5.0% and 4.4% de-clines in new orders and production in July, Ore said the drop in new orders—considered a leading indicator of the PMI—is not welcome news, due to the uneven economy.
And the 4.4% gain in inventory levels shows that inventories continue to grow at a small rate but this jump, according to Ore, needs to be treated as just one month of growth. But he cautioned if there is another increase around the same size in August, inventories will need
“July marks 12 consecutive
months of growth in manufacturing,
and indications are that demand is still quite strong in 10 of 18 industries.”
— Norbert J. Ore, chair of the ISM’s
Manufacturing Business Survey Committee
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16 A U G U S T 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
A tricked-out Toyota 8-Series lift truck performed robotic pallet manipulation at U.S. Army Logistics Innovation Agency demonstrations at Fort Lee in Virginia, proving it’s capable of locating, lifting, moving and placing palletized supplies in an outdoor supply depot, and giving potential end users a glimpse into the future of materials handling. United Natural Foods Inc., a na-tional distributor of natural foods, has taken a giant step forward in its commitment to sustainability. As part of an initiative to transform its Sarasota, Fla., DC lift truck fl eet, the company has installed new hydrogen fuel cell-powered trucks recently developed by The Raymond Corpo-ration. Raymond says the hydrogen fuel cell-compatible orderpickers are the fi rst of their kind in the industry.
Along with some of the world’s most recognized brands like Microsoft and Panasonic, Crown Equipment has been honored by the Industrial Designers Society of America with an International Design Excellence Award (IDEA) for its ESR 5000 Series of narrow-aisle reach trucks used throughout Asia and Europe. This is the 5th consecutive and 18th overall IDEA for Crown. No other company has won more IDEAs in the Commer-cial and Industrial Equipment catego-ry in the last 10 years than Crown.
Mitsubishi Caterpillar Forklift America (MCFA) recently donated a Cat lift truck model NR4000P to Houston Habitat for Humanity. The 4,000-pound capacity reach truck will be used to move building materials at the Houston Habitat for Humanity ReStore, a home improvement resale store where items are sold at greatly reduced prices. The donation, valued at $28,000, is comparable to under-writing more than two days’ worth of construction on a fi ve-day house build.
LIFT TRUCKS IN THE NEWS…to be closely monitored and could refl ect an “involuntary inventory build up” at a time when consumers and businesses remain cautious with their spending.
Pricing in the PMI appears to have stabilized, falling to its current level of 57.5% compared to 77.5% as recently
as May. This decline represents pricing power shifting back to manufacturers, according to Ore. If manufacturers were to start raising prices, he said it would raise the possibility of raw ma-terials’ infl ation, and if prices were to dip, there would be defl ation, which Ore said would be worse.
©2010 Akro-Mils/Myers Industries Inc. #09292
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Properly maintaining internal combustion engine-powered lift trucks means knowing the machine, knowing the rules, and knowing how to work with
your hands and your head.To protect the resources your company has invested in
its lift truck fleet, take a step back. Evaluate your purchase and once you have the right vehicle for the job, do what’s needed to keep your fleet running at optimum performance.
Buy right“Let the dealer do their job.” That advice comes from Jim Shephard, founder of Shephard’s Industrial Training Sys-tems in Memphis, Tenn., who is in the business of keeping lift truck fleets operating safety and efficiently. “It’s very important that the end user allow the lift truck company’s representative to make a site visit and complete a com-prehensive site analysis in the areas the equipment will be operating,” says Shephard.
End users should point out every materials handling task to get the proper results. The best idea is to make a list of materials handling needs by percentage. Your list should include weights, product size, travel distance, stacking, distance, loading trailers and environment.
Don’t miss anything, Shephard cautions, because if even 1% of the process is abusive, it could mean trou-ble. That small percentage could cause a tremendous amount of maintenance and be your biggest problem.
Implement strict service cyclesGasoline- and diesel-powered lift trucks are rarely used in-side a warehouse or distribution center because of the po-tential exposure to carbon monoxide, explains Chuck Bor-man, manager of occupational safety programs for Safety Management Solutions, a safety consulting firm located in Chicago. However, propane-powered lift trucks operate inside and outside of buildings. “The most important rule of thumb is to keep the engine tuned,” Borman says.
Implement strict service cycles that include cleaning the engine, air filter, fluids, cleaning radiators and adjusting inching pedals. Borman also recommends periodic monitoring of all lift trucks, especially those with internal combustion engines.
By the industry’s calculation, every 250 hours on a lift truck equals 10,000 miles on a car. Shephard says, “You wouldn’t drive 10,000 miles without looking under the hood, would you?”
Review maintenance recordsA regular review of maintenance records can tell you a lot. Use maintenance records to back track and determine if the cause of the problems is related to the operator or the process. Either way, the evidence will ultimately lead to a solution.
Operator trainingIf your problems lead back to your operators, training may-be the solution. Train your operators to conduct thorough pre- and post-shift inspections. In a pre-shift inspection, check for loose wires, air intake hoses, clogged radiators, and check all fluid levels. Then get in the seat to ensure that all controls are functioning properly. Also check the location of gauges, switches and foot pedals. In a post-shift operation, it’s especially important to check for fluid leaks. And, both inspections should include a walk around. Be-cause, as Shephard says, you can’t fix what you don’t see.
What operators do off the lift truck is as important as what they do when they’re on it. Make sure they know the best practices for before, during and after their shifts. M
Optimize fleet performanceUse your head and your hands to properly maintain internal combustion engine-powered trucks.
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lift truck TIPS
By Lorie King Rogers, Associate Editor
Pre-use inspection is a critical step in maintenance. Here, Carlos Rodriguez (left) of Trans Gulf Transportation of La Porte, Texas, and Jim Shephard check the oil on an LP gas-powered lift truck.
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The Hard Truth:Smart decisions require knowing all the options.
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modern system report
By Bob trebilcock, Executive Editor W
hen Office Depot decided to consolidate three dis-tribution centers and a crossdock facility into
one, new state-of-the-art DC in Newville, Pa., the office supplies retailer looked for an automated materials handling solu-tion that was efficient and flexible. More importantly, they wanted a system that would deliver a competitive edge in the marketplace.
They found that edge in a goods-to-person picking solution featuring two different mobile robots (Kiva Systems, 781-221-4640, www.kivasystems.com). One robot handles cases while a larger robot moves pallet loads in the facility that went live just a few months ago.
Betting a part of your distribution strategy on robotic materials handling may seem like a risky move, especially given the conservative nature of retail distribution. But, Office Depot is convinced that the time has come for robotics in the DC; after three decades on the manufacturing line, robotics technology is proven, reliable and, says Office Depot, a potential game changer (for more on robotics, see p. 26).
“We believe that the future belongs to the brave,” says Brent Beabout, vice
president of global network strategy and transportation. “We are in a com-modity business and the supply chain is a differentiator. We plan to be on the front end of that.”
While some brick-and-mortar and dot.com retailers have implemented robotic solutions similar to the one in Newville to manage their direct-to-con-sumer orders, Office Depot is taking the technology deeper into its opera-tions than other early adopters. “Most implementations are focused on one process, like each picking,” explains Juan Guerrero, senior vice president of supply chain. “Along with each picking, we are also doing case picking and full pallet movements with the robots. We will handle everything but non-convey-ables or items that are just too heavy to go through the system.”
What’s more, Office Depot is using the robotic system to manage order ful-fillment across all of its sales channels and not just direct-to-consumer. This includes store replenishment and bulk deliveries to business customers.
In all, 100,000 square feet of the 600,000-square-foot building are devoted to the system including the picking sta-tions, which feature 300 robots and
flexible office depot’s
automation
Bob Zelis, senior director (left) and Brent Beabout, vice president of global network strategy and transportation
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Mobile robotics is powering office depot’s new demand-driven distribution center.
PHOTOGRAPHY BY XXXXX/GETTY imAGEs
enough portable shelving space to man-age three days of inventory. To minimize lift truck travel time, the mobile robotic system is augmented by a takeaway con-veyor system and sliding shoe sorter.
Beabout and Guerrero say the robots have reduced the average travel by an associate from 7 miles per shift in a typical distribution center to less than half a mile; meanwhile the order cycle
time has been reduced from 2 hours to 20 minutes. “This system is going to move us from where we were, which was industry-leading customer service levels, to a point well beyond that of our competitors,” says Guerrero.
Starting from scratch Founded in Boca Raton, Fla., in 1986, Office Depot is a leading supplier of
office products and services, with more than $12 billion in revenue, 1,500 retail store locations and 42,000 associates worldwide. The company does business in 52 countries.
The Newville DC was a result of a growth strategy that has been driven by acquisitions for much of the past 25 years. Those deals not only brought new retail locations under the Office
Photos by Alan Wycheck/Getty images
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Depot umbrella, they also added ware-houses and distribution centers. As of a few years ago, Office Depot had 33 buildings in its network, including sev-eral low-volume facilities. Typically, these came in two flavors: crossdock-ing centers to replenish retail locations and distribution centers to service busi-ness customers and direct-to-consumer Internet and catalog orders.
The collection of facilities was less than optimal. “We decided to use the recession to take a hard look at our network and optimize our systems,” says Guerrero. Today, the company has reduced that number to 17, with an ultimate goal of reducing the number of facilities in the network to 12.
To reach that number, Office Depot has closed and consolidated some facilities and upgraded the capabili-
ties in remaining facilities. Newville, which currently serves 107 stores in the Northeast, was different. In that region, where the retailer operated four facilities with a total of 829,408 square feet, there was a unique opportunity to reduce the overall footprint of opera-tions by building a brand-new facility because the leases were coming due on some of the buildings.
“We wanted to take a holistic view of our supply chain, and not just what happens within the four walls of the DC,” says Beabout. “As we did the research, we realized that none of the existing facilities in the Northeast was really centrally located to where we were doing most of our business from a transportation standpoint. It made more sense to start fresh.”
Newville had several advantages
from a transportation standpoint, and it had an available pool of highly skilled potential employees: The company received 4,000 applications and inter-viewed 1,200 candidates to fill 250 slots. “You don’t get that kind of job pool in every area,” says Beabout.
New facility, new technology Building a Greenfield facility also pre-sented an opportunity to optimize the materials handling systems inside the DC with a new distribution model fea-turing two distinguishing characteristics.
Instead of operating separate DCs for store replenishment and direct-to-customer deliveries, Office Depot wanted a system that could integrate with its homegrown warehouse man-agement system (WMS) to handle every line of business and sales chan-
1. Picking instructions are delivered to a touchscreen. 2. associates pick items from a portable module. 3. Picked items are placed on a portable module. 4. Mobile robots deliver the modules to the conveyor system (5) for induction. 6. Cartons are sorted to a packing station.
1
23
4 5
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nel where it operates. What’s more, it wanted the flexibility to scale the busi-ness during seasonal periods, or, ulti-mately, to easily scale up as the overall business managed by the system grows. “We have a lot of common SKUs across our different lines of business,” says Guerrero. “By pooling the inventory in one facility managed by a common WMS, we can reduce the amount of inventory we have on hand.”
Finally, and most important, the sys-tem had to have the capabilities to man-age Office Depot’s transition to a true, demand-driven distribution network. Instead of delivering a pallet load of material that a store will sell through, the goal is to start the season with a minimal amount of product and then make store deliveries five days a week to replace only what was sold the day before. “In
our new pull model, every store will get a just-in-time delivery nearly every day of the week,” says Guerrero. “We’re beginning with the 107 stores served by Newville, and then we’ll roll this con-cept out across the country.”
After looking at traditional pick and pack solutions, including voice-directed pick modules similar to those used at other Office Depot facilities, Guerrero and Beabout chose mobile robotics, a technology they had been investigating for several years. The system uses a small robot to move mobile storage devices to and from associates at workstations, and a larger vehicle designed to handle full pallets. Once picks have been com-pleted, the robots deliver the units to a conveyor induction station, where the shipping containers are placed on a con-veyor and sliding shoe sortation system and are sorted to a shipping lane.
Several factors led to this choice: Goods-to-person: In traditional pick modules, associates walk to pick loca-tions. In the robotic solution, the robots bring the product to the associate’s work-station, saving steps. “A lot of the waste in the DC has to do with walking,” says Beabout. “In this case, that’s gone.” In addition to productivity improvements, the system was very accurate, which would reduce picking errors.
Dynamic slotting: The robotic system monitors the movement of SKUs and slots the inventory according to how fast the product turns over: The fastest moving items are stored closest to the workstations. That leads to bet-ter use of the robots and minimizes the size of the fleet required.
Proven and reliable: The robots were up to the task. “There was a con-cern about going away from a traditional automated materials handling system,” says Guerrero. “But, we did our due diligence. We visited systems that have been in operation in existing facilities, and we asked the hard questions you would ask about an automated sys-tem. The performance, recovery times from failure and risk management were robust enough for our operation.”
Flexible and scalable: There is no question that other automated materi-als handling solutions are effective in a goods-to-person environment, includ-ing mini-load automated storage and retrieval systems (AS/RS) and horizon-tal carousels. What tipped the scales in favor of mobile robotics was the flexibility to handle pieces, cartons and pallets and to easily scale in the future. “Reliability was important, but any solution had to be reliable for us to even consider it,” says Beabout. “We justified the system on productivity, the ability to co-mingle and pool inventory and the ease of adding to the system in the future. If your through-put or inventory grows in the future, all we have to do is allocate more floor space to the robotic system and add robots. We can do that overnight.”
According to Guerrero and Beabout, the building was also designed to fur-ther Office Depot’s sustainability goals. T5 lighting and energy efficient HVAC are used throughout the DC along with recycled materials wherever possible. Energy consumption is monitored, and Office Depot will use renewable energy resources to offset consumption. Finally, it was designed to have the lowest envi-ronmental footprint possible while still meeting throughput requirements. The company intends to seek Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council.
Robotics may play a role there as well. “The facility is eerily quiet,” says Guerrero. “You don’t hear the robotics at work, so the only sounds are people talking, lift trucks or the outbound sorter, which is pretty quiet as well.”
While mobile robotics is providing answers to the distribution requirements in Newville, that doesn’t mean Office Depot will adopt the technology every-where. “We don’t have stars in our eyes and we don’t pretend that robotics is the right solution for all of our facilities,” says Beabout. “We will assess each facil-ity individually going forward. However, this was the right fit for this facility and our overall supply chain objectives.” M
modern system report
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modern system report
Daniel Guidera
While a fleet of mobile robots sounds complex, the processes designed and implemented by Office Depot are deceptively simple. The distribution center also includes a regional print facility (13) for printing jobs that are too large for an Office Depot retail location.
receiving: When a trailer arrives at the receiving area (1), pallets are unloaded by lift truck. A scan of the pal-let label enters the pallet into the ware-house management system (WMS). Once the contents have been compared against an electronic advanced ship notification (ASN) and accepted in the WMS, the product is ready for putaway.
Putaway: The WMS directs put-away and can choose three paths for newly arrived product. Product that isn’t needed right away is transferred by lift truck to a bulk storage area, where pallets are stored on the floor (2) or in a pallet rack (3). The facility includes traditional pallet rack and sections of very narrow aisle (VNA) rack. Pallets with heavy or bulky materials such as paper are temporarily stored in a flow area (4) and then crossdocked directly to the shipping area (5). The remain-ing product is putaway into portable shelving units and stored in the robotic storage and picking area (6) serviced
by the mobile robots. When a pallet of material is deliv-
ered to a picking and replenishment workstation (7) near the picking area, the associate chooses the putaway function for the system. That signals a robot to retrieve a storage unit from the storage and picking area (6) and present it at the workstation (7). The associate scans the bar code label on a carton and places a device with a light on the carton. When the storage unit arrives at the workstation (7), a laser directs the associate to the right location on the storage unit. The asso-ciate presses a button at the worksta-
Putting robotics to workA goods-to-person picking solution managed by 300 mobile robots is at the heart of a new Office Depot distribution center.
By Bob trebilcock, Executive Editor
office depot newville, Pa. size: 600,000 square feet
Products: Office supplies, technology and furniture
throughput: 60,000 lines per day
shifts: 5 days; 2 shifts
employees: 250
Receiving1
Shipping5
Robotic storageand picking
Picking andreplenishmentworkstations
Picking andreplenishmentworkstations
67
7
Outboundconveyor
workstations9
Outbound conveyor10
Sliding shoesorter
11Shipping lanes12
Storagerack
3
Casepickarea
8
Flow area4
Storagerack
3
Floorstorage
2
13Regionalprint facility
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tion to confirm the putaway. When all the cartons for that unit
have been stored, the robot returns the unit to the storage area (6) and delivers the next unit to the worksta-tion (7). The system determines the putaway location for the unit based on the velocity for that SKU. Fast-moving items are stored closest to the worksta-tions, slow-moving SKUs are stored further away.
Picking: A limited number of large non-conveyables are picked from stor-age by lift trucks and delivered to the shipping area (5). Similarly, cases of product that are too heavy for the robotic picking system, such as paper or bottled water, are picked to a pal-let in a case pick area (8) and are then delivered to an outbound conveyor induction workstation (9) where they are placed on the outbound conveyor (10). They are then sorted by a sliding shoe sortation system (11) to an out-bound shipping lane (12). Product may be palletized for shipping (5) or it may be floor-loaded for parcel shipments.
Everything else, including totes for store replenishment, direct-to-con-sumer Internet orders and orders for Office Depot’s business customers, are managed by the robotic picking system (6). The process is similar to putaway. The WMS system receives orders from Office Depot’s order management system and forwards that data to the robotic system. The system then pri-oritizes the orders that must be picked first to meet shipping cut-off times or customer requirements.
To initiate picking, an associate logs into a workstation (7) and chooses the picking function. That signals the system to retrieve a pod with empty shipping cartons for orders (6) and deliver them to the workstation (7). Meanwhile, the system also delivers the storage units (6) with the inven-tory for those shipping cartons to the workstation (7). When a unit presents itself, a terminal at the workstation will display a picture of the SKU, the SKU number, the number of items to be
system suppliers Mobile robotic Picking solution: kiva systems, 781-221-4640, www.kivasystems.com
conveyor, dock conveyor and sliding sHoe sorter: dematic, 877-725-7500, www.dematic.com/na
rack: unarco Material Handling, 800-862-7261, www.unarcorack.com
lift trucks: crown, 419-629-2311, www.crown.com
bar code scanning: Motorola, 800-722-6234, www.motorola.com
Print and aPPly: Pyramid controls, 513-679-7400, www.pyramidcontrols.com
systeM design and integration: office depot, including a proprietary warehouse management system
picked and the bin location where the product is located. A light also identi-fies the picking location.
When the associate scans the item, a light on the unit with shipping con-tainers begins to flash to identify the right shipping container. Once the items are placed in the shipping con-tainer, the associate pushes a button on the unit to confirm the pick. When all of the orders for that unit have been completed, the robot delivers it to one of six lanes in the outbound conveyor
induction area (9). Packing/shipping: At the conveyor
induction station (9), an associate places the cartons on the outbound conveyor (10). They are automatically scanned, which generates a shipping label that is automatically applied. The sorter (11)then sorts the carton to the correct ship-ping lane (12). As with other product, cartons may be palletized for delivery to a store, or they may be floor-loaded for a parcel shipment to a business or direct-to-consumer order (5). M
system can now self-regulate its speed depending on the volume that’s inbound on the system,” says Ruehrdanz. The warehouse control systems (WCS) soft-ware makes that decision using elec-tronic sensors that’s constantly moni-toring where all the cartons are and how they’re fl owing.
2. Print and apply on the fl y. When your supplier is a fancy designer from Italy who can’t be bothered with labeling, you’ve got to be ready with Plan B. The use of print and apply sys-tems allow crossdock operators the fl ex-ibility to deal with inadequately labeled cartons so that proper labels can be printed and applied on cartons as they travel along conveyors allowing them to be immediately cross docked.
“When they fi rst started out, these systems could process 10 cartons per minute (cpm) maybe,” says Steve Haskell, vice president for L.A.-based SDI Industries, a designer, integrator and manufacturer of materials handling systems. “Now you can get 30 cpm reli-ably with a tremendous range of print-ing and software capabilities.”
3. Crossdocking with voice and RFID. With a scan of the pallet license plate, voice-directed operators on the receiving dock can be instructed to quickly move their crossdock pallets to
the correct shipping doors without hav-ing to look at a terminal.
By attaching an RFID tag on a pallet, the simple act of moving the pallet from a tractor trailer through a receiving por-tal not only acknowledges receipt, but allows the automatic download of criti-cal information so automatic crossdock allocations can be made.
The next generation of RFID-enabled lift trucks go a step further by combining RFID data collection with optical real-time location sys-tems (RTLS) to precisely record pallet movement without any operator typing or scanning. As adoption increases, users are investigating the feasibility of using RFID-based technology to elimi-nate the need for some EDI communi-cations by encoding the advance ship-ping information onto the RFID tag to reduce the number of EDI messages.
Vision for the futureWith more trading partners shar-
ing data in real time along with greater levels of systems integration, Manhattan’s Lamphier envisions more “dynamic crossdocks” that constantly look for opportunities to fl ow-through product, even while still in transit. SDI’s Haskell sees equipment improv-ing and becoming more affordable. Soon, you’ll simply be running out of excuses not to crossdock.
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» A Special Supplement to MODERN MATERIALS HANDLING
This gapping conveyor creates mini-mum gaps between cartons. Minimum carton gaps allow the conveying and sorting systems to accommodate more throughput at a slower operating speed.
A sliding shoe sorter diverts cartons using a parallel diverting method.
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MODERN big picture
THE ROBOTS
ARE COMING
Robotic materials handling
technology is changing the way
we move products in the plant
and the distribution center.
By Bob Trebilcock, Executive Editor
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Back at ProMat 2007, small crowds gathered around the booths of Kiva Systems, Seegrid and RMT Robotics even though all three had relatively incon-
spicuous booths. The crowds gathered because each supplier was demonstrating something new: small mobile units that ran around the limited floor space.
Although Kiva displayed an integrated picking solution that included portable storage units, most people didn’t quite know what to do with these gizmos. They didn’t look like traditional robots since they didn’t have arms. But they were also smaller than a traditional automated guided vehicles (AGV) and used different guidance systems.
What they did have was pizzazz. The technology they previewed has since become known as mobile robotics: autono-mous vehicles that can shuttle materials around a factory or distribution center. Of course, the materials handling indus-try is replete with cool technologies that never made it from the exhibition hall to the distribution center floor. Since then, however, the Kiva (781-221-4640, www.kivasystems.com) goods-to-person pick-ing solution has found a home in a num-ber of high-profile warehouses, including the Office Depot facility on this month’s cover (see page 20). In addition, Seegrid’s (877-733-4743, www.seegrid.com) rid-erless vehicles are being used by a lead-ing grocer to deliver pallets to the ship-ping dock so that pickers can remain in the aisle doing more valuable tasks. And, RMT’s (905-643-9700, www.rmtrobotics.com) technology is being used to deliver small quantities of parts to the line in lean,
just-in-time manufacturing environments. They’re not alone. At the North
American materials handling show, NA 2010, last spring, Axium (514-352-0500, www.axiumsolutions.com) displayed sta-tionary robotic solutions for building mixed SKU pallets while KUKA Systems (586-795-2000, www.kukanao.com) and Westfalia Technologies (717-764-1115, www.westfaliausa.com) demonstrated a completely automated and integrated stor-age, picking, palletizing and shipping solu-tion for pallet building.
Fast forward to next spring in Chicago and the Robotic Industries Association (RIA, 734-994-6088, www.robotics.org) will co-locate its Automate event with the Material Handling Industry of America (www.mhia.org) at ProMat 2011 (www.promatshow.com).
What’s going on here? In part, it’s opportunity. The biggest user of robotic technology is the hobbled auto industry. That has led robotic solution providers to look to the distribution center as a new market. “Today, materials handling is the No. 1 application for robots and the one with the most potential for growth,” says Jeff Burnstein, president of RIA (see 60 Seconds with, page 58).
This is not a one-way street, however. Systems integrators and conventional auto-mation providers are seeing an opportunity to integrate robotic technology with their solution sets. Why now? “The technology has become more reliable and the cost of implementing a robot is in line with the cost of hiring an associate in a distribu-tion environment, especially in a multi-shift operation,” says Bryan Jensen, vice president of St. Onge Co. (717-505-8016,
the big picture:Where business meets materials handling
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www.stonge.com). “That was not the case before.”
Consider some of the offerings coming to market from conventional automation companies:
• Swisslog’s (757-820-3616, www.swisslog.com/na10) AutoStore system for goods-to-person piece picking uses an overhead robot, rather than a mini-load automated storage and retrieval system (AS/RS), to deliver totes to an order selector.
• Dematic (877-725-7500, www.dematic.com/na) is partnering with Kollmorgen, (540-467-3086, www.pick-n-go.com), whose technology converts a traditional lift truck into a laser-guided AGV, to create a new order fulfillment system that incorpo-rates voice recognition and driverless trucks for case picking.
• Intelligrated (877-315-3400, www.intelligrated.com) is offering robotic arm retrofits for its family of Alvey in-line case palletizers.
• JBT Corporation (215-822-4600, www.jbtc-agv.com) is developing an AGV mounted with a robotic arm that can retrieve parts from storage and place them on an assembly line.
• If you consider an AGV a mobile robot – and AGV makers are members of RIA–Toyota Materials Handling (800-226-0009, www.toyotaforklift.com) and SI Systems (610-252-7321, www.sipa-systems.com) have added small indus-trial AGVs to their product lines.
This robot roundup raises several questions for end users: Is it all hype? Where do robots fit today? How are robots being applied? What’s next?
Do the robotSo, is it all hype? After talking to nearly a dozen systems integrators, analysts and robotics companies, it seems we are at an early adoption stage, but something is going on, in part because robotic technology is not new.
“Conventional robotic applica-tions have been around for decades, especially in manufacturing,” says Markus Schmidt, senior vice president
at Swisslog. “What’s changing is the development of mobile robotic solu-tions that bring scalability and ease of use to markets that weren’t properly served before, like distribution.”
From an operational standpoint, all those years on the assembly line have paid off: Robots are no longer science projects; they are proven and reliable.
From a technological standpoint, the software driving robots has become more sophisticated, allowing end users to solve more complicated distribution problems and achieve real fill rates. “Software allows us to use two robots to achieve throughput of 2,000 cases an hour,” says Frank Carzoli, director of business development for Axium. “And, the software allows us to build the pallet in a specific sequence for an aisle, optimize the positioning of every box to maintain stability while mak-ing sure we don’t put a case of bottled water on top of a carton of eggs.”
Those breakthroughs were mirrored by the development of more sophis-ticated warehouse control systems to integrate robotics with conventional materials handling for complete solu-tions. “The robotics industry has had
the ability to randomly stack cases for about 10 years,” says Mike Cicco, direc-tor of material handling engineering for FANUC Robotics (248-377-7000, www.fanucrobotics.com). “Now, the materials handling industry has figured out how to automate the depalletizing and sequencing of cartons to the robot.”
Technological developments coin-cided with changes in the marketplace that have driven the need for new solutions.
One key driver is the need for flexible and intelli-gent materials handling, says Steve Banker, service director at the ARC Advisory Group (781-471-1100, www.arcweb.com). “A highly automated warehouse drives down your unit handling cost in a way that can’t be done in a man-ual warehouse,” says Banker. “The risk is that your order profile is going to change and the automation is no longer appropriate.”
Banker thinks of robotics as intelligent and flexible materi-als handling that fills a middle ground between the conven-tional manual DC and automa-
tion solutions like conveyor, sortation and AS/RS that are bolted to the floor.
“The throughput with robotics is not as high as a custom warehouse,” says Banker. “But neither is the investment. You’re looking at a two-year payback compared to a five-year payback for conventional automation.” Meanwhile, if your order profile changes in a robotic-driven warehouse, you can eas-ily change your layout or add another robot to meet increased demand. “It’s a much less risky investment,” says Banker.
Indeed flexibility has been the key theme from Kiva, whose mobile robots deliver product on portable storage shelves to an order selector. “Not even the rack is bolted down,” says Mitch Rosenberg, vice president of marketing. “If you need to move
The increasing demand to build mixed case pallets is one of the key drivers for stationary robotic materials handling.
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your operations, you can load the sys-tem onto a truck and move it over a weekend without disrupting opera-tions. That’s a major advantage of this kind of flexibility.”
Driver No. 2 is the explosion in the number of SKUs, according to Bill Torrens, director of sales and market-ing for RMT Robotics. “When a facil-ity goes from handling 200 SKUs to 400 SKUs or more, you need a lot more space to store and palletize the prod-uct manually,” says Torrens. Robotics can readily adapt to an order fulfill-ment environment that is complex and dynamic, where every order is different.
Driver No. 3 is the ability to integrate robots with materials handling. In the not so distant past, a company bought a robot and then figured out what to do with it. Today, the robot, software and end effectors, and the broader materi-als handling solution is more likely to come as an integrated package.
The solution Westfalia and KUKA Systems displayed at NA 2010 is an
example of this trend: Westfalia’s ware-house management system (WMS) manages the receipt and putaway of product into an AS/RS or mini-load system. Meanwhile, KUKA’s software determines the sequence the cases need to arrive at the pallet and then builds the load according to predeter-mined rules. Once the pallet is built, Westfalia manages the delivery of that pallet to a stretchwrapper and a staging lane for shipment. “What you’re really talking about is an automated order fulfillment system that happens to use robotics,” says Dan Labell, Westfalia’s president. “Not a robotic solution.”
Driver No. 4 is the availability of labor in an aging workforce that is more prone to an ergonomic injury. “If you have 50 people bending and lifting to palletize, you’ve got 50 opportunities for an injury,” says Brian Keiger, tech-nology sales leader for KUKA Systems.
Finally, automation, including robot-ics, may be a strategy to competing with low-wage countries. “Some look at robot-
ics as taking away someone’s job,” says Keiger. “Then there are those who realize that those jobs are going anyway if you don’t do something.” KUKA is working on a robotics solution for one American manufacturer that is looking at automa-tion as a way to reduce their costs and keep their production in the United States.
Where robots fit todayIn the past, justifying the cost of a robot wasn’t easy, especially in the distribu-tion center, because the cost of ware-house labor was so much lower than the cost of labor in a factory. “An order selector just doesn’t cost as much as an assembly line worker,” says Jensen of St. Onge. For that reason, some of the earliest applications for robotics in distribution were in pharmaceutical warehouses doing e-fulfillment. There, a robot was less expensive than a phar-macist earning a six-figure salary. But as the software has gotten better and the cost of processing technology has come
Mobile robots like this fork-equipped unit are able to handle non-value-added processes, like delivering pallets from a pick module to the receiving dock.
the big picture:Where business meets materials handling
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down, the cost of a robot is more in line with the cost of a distribu-tion center worker.
For those reasons, robotics in the DC is primarily attacking labor intensive processes that also involve a level of complexity. “If you have very few SKUs or if you’re shipping full pallets, you don’t need robotics,” says Kiva’s Rosenberg. “If you have complex order fulfillment requirements, if your order profiles and SKUs change often, and if you expect your business or demand for a product to grow over time, robot-ics can meet those requirements.”
As with any form of automa-tion, the savings are most attrac-tive in multi-shift environments.
The ROI, however, can come from other factors. A robot is repeatable, accurate and reli-able. That reduces errors and product damage. Those are important to dot.com companies ship-ping directly to consumers as well as suppliers that might face fines from big box retailers if their orders are inaccu-rate. “If you ship something wrong to a big box retailer, it’s going to cost you a fortune,” says Axium’s Carzoli.
But automating labor-intensive activities isn’t the only way to justify robotics. The higher productivity and throughput rates that result from auto-mation may allow a company to change its logistics network. “You may find your savings from robotics beyond the DC,” says Labell. Indeed, Office Depot is using Kiva as a strategy to consolidate four warehouses into one.
In manufacturing, mobile robotics has emerged as an enabler of lean man-ufacturing strategies. “Manufacturers have put a lot of money into automating their manufacturing cells,” says RMT’s Torrens. “But they still have a lot of lift trucks shuttling parts to the line.” To reduce traffic, it’s not uncommon to have an operator drop off a pallet with a hundred units even though only 20 are required. When the 20 are consumed,
Suppliers of robotic materials handling solutions There are dozens of robotics companies in the market. Below is a list of the companies that were contacted for this story and are offering robotic materials handling solutions separately or as part of an integrated materials handling solution.
ABB, 248-391-9000, www.abb.com/robotics
Axium Technologies, 514-352-0500, www.axiumsolutions.com
Dematic, 877-725-7500, www.dematic.com/na
FANUC Robotics, 248-377-7000, www.fanucrobotics.com
HK Systems, 262-860-7000, www.hksystems.com
Intelligrated, 877-315-3400, www.intelligrated.com
JBT Corporation, 215-822-4600, www.jbtc-agv.com
Kiva Systems, 781-221-4640, www.kivasystems.com
Kollmorgen, 540-467-3086, www.pick-n-go.com
KUKA Systems, 586-795-2000, www.kukanao.com
RMT Robotics, 905-643-9700, www.rmtrobotics.com
Seegrid, 877-733-4743, www.seegrid.com
SI Systems, 610-252-7321, www.sipasystems.com
Swisslog, 757-820-3616, www.swisslog.com/na10
Toyota Materials Handling, 800-226-0009, www.toyotaforklift.com
Universal Robotics, 615-366-7281, www.universalrobotics.com
Westfalia Technologies, 717-764-1115, www.westfaliausa.com
Yaskawa Motoman Robotics, 937-847-6200, www.motoman.com
Small units like this mobile robot assist lean manufacturing by delivering smaller quantities of parts to the line on a more frequent basis.
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the pallet is returned to the warehouse. That’s an extra step and it requires more real estate for storage at the line.
“A small mobile robot can make more frequent deliveries in smaller quantities,” says Torrens. “Instead of replacing a lift truck, they create a virtual conveyor within the building.” Much like your car’s GPS system, the robots have a map of the facility in their processors and decide autonomously how to get from point A to point B. If the vehicle encounters an obstacle or a traffic jam, like a GPS, it can recalcu-late and figure out another route to get to where it needs to go.
mmh.com Modern Materials Handling / A u g u s t 2 0 1 0 31
in addition to palletizing, stationary robots are also being used in some
piece picking operations.
BY BOB TREBILCOCK, EXECUTIVE EDITOR
THE CONVEYOR INDUSTRY IS BACK ON THE MEND, with mem-bers of the Conveyor Equipment Manufacturers Association (CEMA, www.cemanet.org), expecting a return to growth in 2010.
“We’re expecting CEMA mem-bers to report sales that are fl at to up 2% for the year,” according to Dan Fannin, vice president of mar-keting for Emerson Power Transmis-sion. Fannin expects the market to reach $6.2 billion this year, up from $6.06 billion in 2009. Sales will still be more than $1 billion below the $7.8 billion association members racked up in 2007.
Still, up is up, and that’s great news for the conveyor industry, which has fared the recession better
than the overall materials handling industry.
Fannin delivered his report in Scottsdale, Ariz., where I’ve traveled to attend CEMA’s annual meet-ing. The most impor-tant take away I’ve gotten is that things seem to be getting better. Don’t get me wrong;. No one told me business is great. Fannin, for instance, said he was trying to be conservative in his assess-ment and added that getting that 2% growth will depend on whether the anticipated orders come in with enough time for conveyor manufac-turers to ramp up production and ship before the year is out.
But I heard from a number of
companies that end users are once again sending out requests for pro-
posals and asking for quotes. “It all starts with propos-
als,” one manufacturer told me, “and we’re seeing them again.”
This is the second year in a row I’ve been to CEMA, and
I’ve really enjoyed spending time with this
group. I have two other blogs from the event, includ-
ing a report on a panel discussion that included the guys in charge of buying materials handling systems for Miller Coors and UPS and a look at what conveyor users want. Look for them at www.mmh.com/blog/cemapanel and www.mmh.com/blog/conveyorusers.
16 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
FROM THE BLOGS
CEMA: The conveyor industry is growing again
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the big picture:Where business meets materials handling.
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Putting robots to work How are end users putting robots to work? That may be one of the more interesting developments. While there are a number of companies developing materials handling solutions for robot-ics, the problems they are tackling are as varied as the processes in a distribu-tion center and factory.
For example: In a traditional pick-to-pallet operation, an order selector transports a pallet from a pick zone to a staging area at the dock. That transpor-tation time is a necessary evil that adds no value to the order. Using a Segrid mobile robot, the order selector picks to a pallet on the vehicle. Once the picks are complete in that zone, the vehicle automatically travels to the next pick-ing zone or the dock, while the order selector stays in the pick zone and picks to another pallet on the next vehicle. To find its way, the unit is guided by a vision system that compares the fea-tures of a facility with a map of the facil-ity in its processor.
Kollmorgen’s Pick-n-Go laser guid-ance and vehicle control systems can be retrofitted to a company’s fleet of lift trucks, transforming an existing fleet into driverless laser-guided pallet trucks. In its partnership with Kollmorgen, Dematic is using the technology as a core component of an integrated, voice-directed picking solution. Laser-guided vehicles deliver a new pallet directly to a picker, who is then directed by voice picking technology to pick to a pallet. Once the picks in that area are com-pleted, the truck automatically delivers the completed pallet to shipping while another laser-guided truck delivers a fresh pallet to the picker.
Mobile robots have captured much of the spotlight since ProMat 2007, in part because they are perceived to be so different from what has tradition-ally been on the market. But there are a number of innovative solutions using stationary robotics:
RMT, for instance, also makes an overhead gantry robot that automati-cally picks from large floor storage
areas and delivers the product in the exact sequence needed to build a pal-let for a store or a route delivery truck.
Axium has developed solutions for layer picking and mixed case picking using one and two robots from ABB (248-391-9000, www.abb.com/robot-ics). Axium has also developed a robot for piece picking. Currently in use at a 3PL, the robot picks individual car-tons of cigarettes to a shipping con-tainer. The completed cases could then travel to another robotic station to be palletized. While other companies have developed robotic solutions to build mixed SKU pallets, Axium’s solu-tions are built on a compact 8-foot by 20-foot skid that can be easily shipped and tied into an existing production line at a facility.
FANUC Robotics has developed a completely automated robotic line for a food manufacturer that picks the product after it has been manufactured and frozen and places it in a flow wrap-per. Once the product is wrapped and shrink wrapped, a second robot puts two of the products in a shelf-ready box. Those boxes travel by conveyor to another station where a robot places six boxes of product into a shipping case. From there, the case travels to a pallet-izing station, where a robot places the cartons on a pallet.
What’s next Each of the solutions identified above are already being used. At the same time, new solutions are being developed. “We expect to see robots with two arms and stationary robots on mobile vehicles in the future,” says the RIA’s Burnstein. “Those will open up new opportunities for robotics.”
For example, Universal Robotics, (615-366-7281, www.universalro-botics.com) a Nashville-based solu-tion provider, is developing solu-tions using two-armed robots from Yaskawa Motoman Robotics (937-847-6200, www.motoman.com). One currently in development is designed to depalletize mixed size loads at the receiving dock, says David Peters, Universal’s CEO, especially loads that may have shifted in transit or damaged product.
The robot uses a vision system and special sensors built into the end effec-tors to identify and pick a carton from a pallet to a container in a crossdocking operation. “Because the robot has two arms, it can do a closure on the carton and apply force from both sides like a human would,” says Peters. Moreover, the solution is designed to fit in a foot-print no larger than would be required by a person. “The idea is that we can drop this into an existing work cell without any modifications to your pro-cesses,” says Peters. The goal: Deliver an 18-month ROI.
JBT is piloting an AGV that is equipped with a stationary robotic arm. The arm is used to pick produc-tion components from a storage area and then to load them onto a produc-tion machine in the assembly area. The vehicle is in the factory acceptance stage now, says Mark Longacre, JBT’s marketing manager.
What all of these solutions illus-trate is that robotics is clearly here today. “We’re still in the early adopter stage,” says FANUC’s Cicco, “but we have the possibility for this thing to explode.” �
“ We’re still in the early adopter stage, but we have the possibility for this thing to explode.”
—Mike Ciccodirector of material
handling engineeringFANUC
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mmh.com Modern Materials Handling / A u g u s t 2 0 1 0 33
l ast year Aetrex, a family-owned global leader of pedor-thic footwear and foot orthotics, completed its 12th-con-
secutive year of double-digit growth, doubling revenue in the past five years. “Our goal is to become a major brand in footwear,” says Jeffrey Pike, vice president of operations for Aetrex Worldwide, adding that the company is on the cusp of a major push into the consumer market on a global basis.
To continue that growth, Aetrex made a strategic deci-sion five years ago to outsource its manufacturing and position the company as the expert in pedorthic footwear and foot orthotics, focusing on the design and quality of its products and customer care. “Once we decided to go off-shore with our manufacturing, we realized that we needed a warehouse management system (WMS) that could sup-port our objective of improving our distribution, customer service and distribution channels,” Pike adds.
The solution was a WMS (Tecsys, 800-922-8649, www.tecsys.com) that provides real-time intelligence to link its customers, management and distributors while managing 20,000 different stock keeping units (SKUs) and filling 2,000 orders and 20,000 lines per day.
Since deploying the WMS and related applications, Aetrex has gained a significant number of supply chain execution capabilities and benefits:
• The volume of business has increased by 80% with no addition to head count,
• Fill rates have improved by 45%,• Inventory accuracy has improved by 70%, and• Costs have been decreased by 24%.
To service customers, the system receives orders daily through electronic data interchange (EDI), which triggers the picking process from inventory. Orders can be picked one order at a time or through a batch order process. Non-distributor orders are usually shipped the same day, with rush orders given a priority; if an order is received by 2:00 p.m., it is shipped the same day.
Aetrex also uses the system to manage orders it plac-es with its suppliers. Orders are placed monthly and can take up to four months before they are received at Aetrex’s central distribution facility. Upon receipt, ship-ments are scanned into the WMS, followed by a strin-gent quality control process that includes a final inspec-tion of all incoming product before putaway.
To streamline operations, the WMS alerts receiving in advance of incoming products that should be immedi-ately shipped or put away into a stocking location. Down the line, EDI enables the system to generate an advanced ship notice (ASN) to advise the customer on a timely basis. This enables Aetrex to automatically pass orders through the entire system from receipt of an order to shipping and billing. It also helps to maximize customer responsiveness, increase turnover, reduce cost and meet trading partner requirements.
“The WMS has enabled us to grow at a very aggressive rate and achieve our strategic sales and customer service goals,” says Pike. “It has enabled us to increase our produc-tivity, our volume and be able to manage our distribution and sales commitments.” M
Aetrex puts its best WMs foot forWArd
By Bob trebilcock, executive editor
With a new warehouse management system, Aetrex is winning the foot race against its competitors in the shoe business.
modern productivity solution
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By lorie King rogers, Associate Editor
TOP
LIFT TRUCK sUPPLIeRs
Daniel Guidera
the worldwide industrial lift truck industry spent the better part of 2009 in a rut. sales were down 39%, but it appears the worst may be over.
modern special report
The lift truck industry spent the better part of 2009 stalled out. In last year’s Top 20 lift truck suppliers story, Modern reported “the fourth
quarter [of 2008] saw sales come to a screeching halt.” Unfortunately, that trend continued for the next four fis-cal quarters; worldwide lift truck revenue for 2009 went in reverse, contracting by 39%.
MMH_1008_Top20LiftTrucks2.indd 34 8/10/10 1:15 PM
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modern special report
36 A u g u s t 2 0 1 0 / Modern Materials Handling mmh.com
World’s top 20 industrial lift truck suppliers
rank Company2008 rank
2009 revenue*
north american brands
World headquarters
1 Toyota Industries Corp. 1 $4.6 billion Toyota, Raymond Aichi, Japan
2 Kion Group 2 $4.1 billion Linde, Still, OM, Baoli
Wiesbaden, Germany
3 Jungheinrich Lift Truck Corp.
3 $2.3 billion Jungheinrich Hamburg, Germany
4 Crown Equipment Corp. 5 $1.6 billion Crown, Hamech New Bremen, Ohio
5 NACCO Industries 4 $1.5 billion Hyster, Yale Cleveland, Ohio
6 Mitsubishi Caterpillar Forklift
6 $920 million Mitsubishi, CAT Sagamihara, Japan
7 Komatsu Utility Co. 8 $750 million Komatsu, Tusk Tokyo, Japan
8 Anhui Forklift Group 9 $668 million Heli Hefei, Anhui, China
9 Nissan Forklift Corp. 7 $624 million Nissan, Barrett, Atlet
Tokyo, Japan
10 TCM Corp. 10 $593 million TCM Tokyo, Japan
11 Nippon Yusoki Co. 11 $559 million Not available in North America
Kyoto, Japan
12 Doosan Infracore 15 $418 million Doosan Infracore Seoul, South Korea
13 Clark Material Handling 12 $405 million Clark Seoul, South Korea
14 Manitou 13 $296 million** Manitou Ancenis, France
15 Zhejiang Hangcha Engineering Machinery Co.
14 $251 million** HC Hangzhou, China
16 Hyundai Heavy Industries
16 $237 million Hyundai Ulsan, South Korea
17 Tailift 18 $100 million** Tailift, World-Lift Taichung, Taiwan
18 Combilift 19 $98 million Combilift Monaghan, Ireland
19 Hytsu N/A $86 million Hytsu Shanghai, China
20 Hubtex 20 $60 million Hubtex Fulda, Germany
*Fiscal year 2009 worldwide sales revenue. **Figure based on industry estimate. Figures based on foreign exchange rates as of 12/31/09.
TOPLIFT TRUCK sUPPLIeRs
modern special report
MMH_1008_Top20LiftTrucks2.indd 36 8/10/10 1:15 PM
mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 0 37
MODERN special report
(No. 5) trade places in this year’s ranking with $1.6 billion and $1.5 billion, respectively.
Each of these companies topped the billion dollar mark, and combined they reached more than $14 billion in revenue for 2009, compared to $20.1 billion in the previous year.
But before you read on about last year’s industry woes, know this: Things appear to be turning around in 2010. In fact, Jeff Rufener, president of the Industrial Truck Association (ITA, 202-296-9880, www.indtrk.org) and vice president of marketing for Mitsubishi Caterpillar Forklift of America (MCFA, 713-365-1000, www.mcfa.com), says, “last year we thought things couldn’t get any worse. The industry bumped along in 2009, but the last fiscal quarter started to show some increase.”
So, with the stage set for improvement this year, just how bad was last year? Wicked bad. According to ITA’s worldwide industrial truck figures, shipments were down 39% in 2009.
And, it was down around the globe. Europe and Oceania took the biggest hit, each suffering a 48% decline from the previous year. The Americas weren’t far behind, experiencing a 43% decline. Africa saw shipments decline by 40%, which is significant because last year it was the only region to hold its ground and avoid the economic attack. Asia’s decline of 23% was this year’s lowest, but still a big blow, considering it only saw a 5% decline last year. (See the “Worldwide lift truck orders” table on right.)
So now that we know how the worldwide regions held up, or down, how did the Top 20 lift truck suppliers fare independently? Last year’s top five suppliers–Toyota, Kion, Jungheinrich, NACCO and Crown–still hold the top five positions. (See the table on p. 36 for the complete list of the world’s Top 20 industrial lift truck suppliers.)
Toyota maintained the top spot with $4.6 billion in rev-enue. The Kion Group (North American brands: Linde, Still, OM and Baoli), which acquired the Chinese Jingjiang Baoli Forklift Truck Co. in January of 2009, remains in the No. 2 position with $4.1 billion in revenue.
Jungheinrich also hung onto the No. 3 position with $2.3 billion in revenue for 2009. Rounding out the top five, Crown (No. 4) and NACCO (North American brands: Hyster, Yale)
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Making the listTo be eligible for Modern’s annual Top 20 lift truck suppliers ranking, companies must manufacture and sell lift trucks in at least one of the Industrial Truck Association’s seven truck classes: electric motor rider; electric motor hand trucks; internal combustion engine; pneumatic tire; electric and internal combustion engine tow tractors; and rough terrain lift trucks.
Rankings are based on worldwide revenue from powered industrial trucks during each company’s most recent fiscal year. Revenue figures submitted in for-eign currency are calculated using the Dec. 31, 2009 exchange rate.
TOPLIFT TRUCK SUPPLIERS
MODERN special report
Worldwide lift truck ordersRegion Number of orders Percent change
Europe 207,082 -48%
Oceania 12,451 -48%
Americas 128,246 -43%
Africa 9,953 -40%
Asia 207,207 -23%
TOTAL 564,939 -39%
Source: World Industrial Truck Association statistics
MMH_1008_Top20LiftTrucks2.indd 37 8/10/10 1:15 PM
To make the list, suppliers had to make at least $60 mil-lion in revenue last year compared to $98 million in 2008.
New to Modern’s Top 20 worldwide industrial lift truck ranking this year is Hytsu, which has headquarters in Shanghai, China. It makes an appearance at No. 19 with 2009 revenue of $86 million.
The combined 2009 revenue for all 20 companies on Modern’s list comes to $20.17 billion, compared to $28.99 billion in 2008 and $31.67 billion in 2007. But that down-ward spiral appears to be reversing itself. According to Rufener, this year the industry’s growth is already better than expected. He says that in the April 2010 quarterly reports, ITA member companies are reporting 15% growth over 2009, and through May, the suppliers are expecting more than 40% growth over the same time period last year.
That growth is extremely positive and 40% is good. But, Rufener says to remember that the first three months of 2009 were very slow with plenty for room for improvement. “I don’t expect that rate to continue,” he says, “but I do think
it’s realistic to expect 2010 to average out at 25% growth over last year.”
It’s also realistic and highly likely, Rufener adds, that the industry will wrap up the year in the black, not the red.
Rufener attributes the annual growth to a number of factors. First of all, he points out that the capital goods business is cycli-cal. Secondly, he says, “The industry tends to track in proximity to
what’s going on in the economy in general, meaning the industry is GDP-sensitive. GDP in excess of 2.6% almost ensures the lift truck industry will grow.”
The general economy isn’t the only factor playing a role in the industry’s P&L statement. According to Rufener, companies are doing a much better job of leveraging their existing businesses. For example, he explains, NACCO has had a change in their distribution strategy. Where some dealers would represent either Hyster or Yale, they
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“ I don’t expect that rate to continue, but I do think it’s realistic to expect 2010 to average out at 25% growth over last year.”
—Jeff Rufener, president of the Industrial Truck
Association
modern special reportTOPLIFT TRUCK sUPPLIeRs
modern special report
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are now representing both.Another example of maximizing an existing investment
is the recent manufacturing and distribution agreement between Jungheinrich and MCFA. With the German com-pany exiting the North American market, Jungheinrich products will be designed and manufactured at MCFA’s Houston, Texas, operation and MCFA will be the exclusive distributor of the Jungheinrich brand. Jungheinrich has a successful brand and MCFA has a strong distribution net-work. So, the strategy is to put the two together and grow the respective businesses.
Chugging alongFor the past two years, Modern has recommended keep-ing an eye on the emerging lift truck markets in China and India. Unfortunately, during the past two years, we’ve watched the overall industry submerge. But, with numbers finally headed upward and the industry getting back on a growth track, the third time is the charm and we repeat again: Modern will be keeping tabs on emerging Indian and Chinese lift truck suppliers.
In China, so far from January 2010 to June 2010, domes-tic forklift sales hit the 90,000-unit mark, up nearly 113% from 2009. Sales are expected to grow further, possibly reaching 180,000 lift trucks by the end of the year.
We’ll also stay tuned into electric trucks. In 2005, 55% of all industry orders were electric. By 2009, that figure had
grown to 68%. While the orders for electric trucks are relatively unchanged for 2010, we’ll watch to see who plugs in by the end of the year.
Last, and certainly, not least, Modern will care-fully watch the greening of the industry. True, dur-ing an economic downturn, internal combustion orders go down and electric orders go up because industries like food and beverage that tradition-ally use electric trucks tend to be more recession proof. But even as the economy improves and internal combustion numbers increase, the shift toward electric will be sustained for ecological reasons.
“Green is significant,” says Rufener. “Concern for the environment, concern for the cost of fossil fuel, and advances in technology and performance will result in the continued purchase of electric lift trucks.” �
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MODERN special reportTOPLIFT TRUCK SUPPLIERS
MODERN special report
A lift in revenue(Worldwide lift truck revenue, $ billions)
$20
$25
$30
$35
2005 2006 2007 2008 2009 2010*
*Projected revenue: Jeff Rufener ITA president and vice president of marketing for MCFA says he anticipates the 2010 worldwide industrial lift truck market to grow about 25% over 2009 numbers.
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By sara Pearson specter, Editor at Large
Regardless of the style, lift truck suppliers are developing tech-nologies that drive productiv-ity improvements for users. With emissions control regula-
tions and an increasing desire among users to be more environmental
and cost-conscious about energy use, a number of trends have surfaced in the industry.
“Suppliers are looking at technology to improve productivity,” says Jeff Bowles, product marketing manager for Mitsubishi Caterpillar Forklift America (MCFA, 713-365-1000, www.mcfa.com), manufacturer, marketer and distributor of CAT, Mitsubishi and Jungheinrich lift truck brands. “Typical truck and warehouse designs, as well as regu-lations, can limit things like maximum truck speed, for example. So the trucks have to become smarter to become more productive.”
Developments include increased use of AC and alternative power sources, green
technologies, better monitoring of fleets and outsourced maintenance. Here are five of the hottest trends in lift trucks.
1. Electric overtakes internal combustionMore electric lift trucks are sold in the United States than internal combus-tion trucks, at a ratio of approximately 60:40, according to Martin Boyd,
national product planning and market-ing manager for Toyota Material Handling, U.S.A. (TMHU, 800-226-0009, www.toyota-forklift.com). This represents a reversal of the ratio from 30 years ago, Boyd says.
modern equipment report
Lift trucks get smarter
Toyota Industries Corp. (TICO) launched an internal
combustion hybrid lift truck in the Japanese market in 2009.
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New technologies and usage practices can help you maximize your fleet’s productivity and longevity while reducing your carbon footprint.
LIFT TRUCKS GET SMARTER
“Electric drive-train technology has gotten much bet-ter with the introduction of AC power in the U.S. mar-ket, and fast charging technologies have also improved,” he explains. Other reasons for the shift include growing environmental awareness, volatile fuel price and legisla-tive pressures from the Environmental Protection Agency (EPA) and California Air Resources Board (CARB) to con-trol emissions, Boyd adds.
With 2009’s economic downturn, electric truck purchases spiked to 67% of the market, an anomaly Boyd attributes to the continued sale of non-durable goods—such as food and bever-age—that are typically handled by electric trucks.
“Durable goods like home improvement supplies and lux-ury items are primarily handled by internal combustion lift truck products, so as the economy improves and people start spending again, electric truck market share will likely return to the 60% level.
2. Alternative power sources While more battery-powered lift trucks are in service than ever before, they still require dedicated space for change outs and recharging. They also are prone to performance degrada-tion over time: As the battery’s power is depleted, lift truck performance declines. For those reasons, lift truck suppliers and a few users are in the process of evaluating alternative power sources, including hydrogen fuel cells.
The fuel cells are identical in size to lead acid batteries, converting hydrogen to electricity, with water as the only emission. Unlike batteries, fuel cells produce constant volt-age until the hydrogen is depleted. While they are available now, their initial cost and infrastructure requirements make them inaccessible to most users.
“We are working with a large number of customers and fuel cell suppliers to make sure the trucks work and cus-tomers are satisfied with the vehicle’s overall functionality,” says Dave Norton, corporate product engineering manager for The Raymond Corp. (607-656-2311, www.raymondcorp.com). “As to when we’ll be seeing widespread use of fuel
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cells in lift trucks, my guess would be within a five- to 10-year timeframe.”
Norton suspects that tax breaks and incentives from the government will encourage more users to exchange their batteries for fuel cells, but points out that—for now—the justification for their infrastructure depends on the user’s size.
In addition to the emissions, space savings and continuous power benefits of fuel cells, they also offer enhanced safety, says Jonathan Dawley vice president of marketing for NACCO
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modern equipment report
Materials Handling Group (252-931-5100, www.nacco.com), the manufacturer of Hyster and Yale lift truck brands.
“We deployed fuel cells in 250 trucks for a Chicago-area grocery distributor last year, and their return on investment came not only from the elimination of a dedicated battery changing room and personnel, but also enhanced safety and productivity. People no lon-ger had to drive outside their designated work areas to get new batteries; instead they were able to refuel or top-off when they had downtime.”
Another future option may be hybrid diesel/electric or pro-pane/electric powertrain systems, adds Toyota’s Boyd. “We’re cur-rently monitoring Toyota’s recently introduced hybrid diesel/elec-tric forklifts in Japan. Hybrids deliver 50% better fuel economy,
and a 50% cut in emissions.”
3. SustainabilityBoth electric lift trucks and alternative power sources con-tribute to many companies’ sus-tainability goals. With “being green” on everyone’s mind, lift truck suppliers are unveiling a variety of features that conserve energy while at the same time maximizing productivity.
“In all trucks—diesel or elec-tric—there’s a finite energy source: battery capacity or fuel tank size,” says MCFA’s Bowles. “The empha-sis in the last generation of trucks has been how to best make use of that finite level of energy.”
New technologies that offer better energy efficiency include regenerative lowering in high lift equipment, such as turret and reach trucks, that feeds energy back to the battery, and a toggle-on fuel saver mode for LPG trucks that lowers the vehicle’s performance to 92% of full power, but conserves 20% more fuel, says Bowles.
“Even component placement can improve energy usage, such as repositioning the motors, hydraulic pump and valve to the front of a three-wheeled truck to shorten some power cables and hoses and eliminate others to gain more energy efficiency by pushing oil and current through shorter distances,” he says.
4. Analytics and fleet managementWhile the amount of data available from the vehicles them-selves is practically boundless, it’s taken users a while to figure out how to best gather and analyze the information. Enter improved data and fleet management software to help streamline the process.
“Wireless systems gather data, collate and crunch it, and then put it in a format that’s easy for the user to use for better management of operators and fleets,” says Matt Ranly, senior marketing product manager for Crown Equipment (419-629-2311, www.crown.com). “The data includes fuel or battery usage, impacts and their severity, truck operation, speeds, cycles, productivity and checklists.”
As a paperless approach, many systems offer dashboard reporting to filter the information and convert it into useful metrics that can be shuffled to reflect a period of time—from comparisons of one day’s shift to another, or several weeks or months of information for trend reporting.
5. Maintenance and leasing programsMore users are shying away from handling their own lift truck maintenance, says David Spears, manager of busi-
Fleet management software collates and crunches the data from vehicles for increased productivity, timelier maintenance and operator accountablility.
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MODERN equipment report
After increasing its fleet to 19 reach-fork and stand-up counterbalanced vehicles and upping the size of its main warehouse from 40,000 to 110,000 square feet, Masters Gallery Foods prioritized addressing lift truck impacts and reducing vehicle, product and facility damage. The cheese product supplier, with headquarters in Plymouth, Wisc., has 50 lift truck operators working during three shifts each day.
To manage both vehicles and operators, the company installed the iWarehouse fleet optimization system (The Raymond Corp., 607-656-2311, www.raymondcorp.com). As operators weren’t always timely in reporting impacts, the initial goal was better management through better monitoring.
“Lift trucks required premature maintenance to hoses or wheels as a result of impacts,” says Dan Murphy, warehouse manager. “We needed to find out when impacts were occurring so we could assess the cause and determine if additional training was required or if something in the facil-ity was contributing to incidents.”
The system draws real-time information from on-board vehicle computers. Data is accessible to warehouse man-agers through a Web portal. Managers are immediately alerted about impacts as well as their severity. Additionally, the system monitors the average uptime and productivity of the trucks—even at a second facility 20 miles away.
“Our goal is to have 80% of our fleet in operation,” adds Murphy. “I can evaluate times of the day when usage is exceeding or not meeting that target, to determine if we need more trucks or if we should hire additional operators during a particular shift.”
Within five months of installing the fleet optimization system, impacts were reduced by 88%, Murphy reports. Further, the tracking encourages accountability and effi-ciency, manages new employee vehicle speeds, streamlines maintenance and eliminates paperwork for the OSHA-required, pre-operation checklists—all of which have con-tributed to the company’s pursuit of increased productivity, he adds.
Cheese supplier reduces lift truck impacts
Lift truck suppliers are developing new technology to improve durability and reduce maintenance and downtime.
ness development for NACCO. “By moving away from buying and owning equipment to
leasing with full periodic maintenance contracts, users can focus on their core business,” says Spears.
Many users simply don’t have the time or energy to be a lift truck expert, agrees Patrick Duhaime, director of brand management for Hyster (800-497-8371, www.hyster.com). “That’s an evolution that started a long time ago, but it’s certainly accelerated lately,” he said.
With the growth of Web-based analytics and fleet man-agement—and the use of more reliable components that last as long as 1,000 hours before maintenance is required—it’s become easier for suppliers and distributors/service provid-ers to remotely monitor a vehicle’s condition and flag it for service on an as-needed basis.
Additionally, suppliers are developing new technologies to improve durability and reduce maintenance and down-time, adds Raymond’s Norton.
For example, “many of the systems within the trucks now are monitored by temperature sensors, preventing the vehicle from overheating and reducing damage,” he says. �
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FOCUS ON Pallets
Customizable plastic pallet The 2,800-pound capacity edge-rackable universal pallet is offered in a 48 x 40 inch footprint. Fully customizable to meet unique applications, the pallet can incorporate molded-in metal or plastic reinforcing rods for rigid-ity and anti-slip rubber plugs on deck, rails and feet to stabilize loads. To prevent loads from shifting in transport, a 0.25-inch or 1-inch perimeter lip may be speci-fied. The pallet is easily cleaned with steam, hot water and detergents. For easy handling from any orientation, four-way beveled fork entry openings are standard. Buckhorn, 800-543-4454, www.buckhorninc.com.
stackable, reusable plastic palletFabricated of recycled, high-density polyethylene plas-tics, RACX pallets may be used repeatedly rather than be discarded. Fully recyclable at the end of their life, the pallets feature a picture-frame bottom and runners on all four sides for added stability. Engineered so the bottom pallet can handle a full static load when loaded pallets are stacked two or more high, the pallets offer unsupported rack capacities up to 2,200 pounds. Static load capacities are rated to 25,000 pounds and dynamic loads to 5,000 pounds. The standard size is 48 x 40 inches and options include rubber grommets or lips to keep contents from slipping. decade Products, 616-975-4965, www.decadeproducts.com.
nail-free wood pallet Offered for purchase or through a pallet lease pool, the Bison all-wood pallet features nail-free construction to eliminate nail pops that could damage prod-ucts or cause worker injury. The pallet does not contain harmful additives and does not use non-sustainable petroleum-based resins. The pallets weigh 55 pounds —30% lighter than comparable wood pallets—and last 2.5 times longer.
Featuring stiff construction, the pallets reduce vibration during shipping, minimizing product damage and reducing product packaging. Miller dowel, 847-441-5125, www.bisonpallet.com.
nest empty plastic pallets for improved storage ratioThe SG nestable plastic pallet formed through high-pressure injection molding offers heavy load carrying capacity and no flowering. Employing strong welds and enhanced rigidity, the pallet is light weight to improve manual and automated handling. When empty, the pallet’s high nesting ratio provides for better storage. rehrig Pacific, 800-421-6244, www.rehrigpacific.com.
online application simplifies pallet managementThe pooled pallet supplier’s online application, Portfolio Plus, reduces adminis-trative tasks throughout all levels of your distribution supply chain. The system’s features include the ability to coordinate orders and collections, submit resolu-tion requests, and display physical asset movements. Additionally, the system offers real-time analytics and account health monitors with professional support. CHeP, 866-855-2437, www.chep.com.
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Corrugated export pallet for one-time use
A corrugated pal-let—offered as an alternative to wood, composite and plas-tic—combines the cost savings of an ultra-lightweight pal-let with the strength and durability of con-ventional pallets. The disposable pallet is constructed of single or double-wall cor-
rugated board with weatherproof adhe-sives. Offered in four capacities from 275 to 500 pounds, custom models can also be created. Intended for one-time use, the pallets are exempt from ISPM 15 guidelines, making them ideal for export. PalletKraft, 800-513-7562, www.palletkraft.com.
Aluminum pallets offer strength, durabiltyConstructed from four different aluminum alloys in a proprietary manufacturing pro-cess, an aluminum pallet incorporates closed section, thin walls with durability to with-stand everyday wear and tear. Offered in two versions—the C5 and M5—both pallets measure 48 x 40 x 5.6 inches. The M5 has tighter deck spacing than the C5. Edge-rackable, the C5 holds up to 2,800 pounds and the M5 up to 4,000 pounds. Both nine-block pallets feature four-way entry, customized deck coverage, no open cavities and are 100% recyclable. ALX Pallet Systems, 248-282-5520, www.alxpallet.com.
Pallet for stacking andracking applicationsFor use in both racking and stacking applica-tions, the medi-um-duty 40 x 48 x 6 inch Stack’R pallet is made of polypropylene plastic for food and agricultural use or may be formed from polyethylene. The all-plastic pallet cannot harbor pests, mold or fungus. Capable of tolerating a range of tem-peratures, the reusable pallet is 100% recyclable. It is offered with an open or solid deck. Features include four-way hand and fork truck entry, easy cleaning and a light weight for improved ergo-nomics. ORBIS, 888-307-2185, www.orbiscorporation.com.
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FOCUS ON Pallets
reusable plastic pallet Priced 30% less than similar pallets, the LDS4845-DIM plastic pallet is made from a mix of recycled materials, including high-density polyethylene, poly-propylene, and low-density polyethylene. It is molded on a low-pressure injection press and measures 48.5 x 46 x 7 inches. Weighing 58 pounds, the pallet holds a 2,700 dynamic load and up to a 12,000-pound static load. Sanitary, reusable and recyclable, the pallet resists most chemicals and features a full 1-inch lip around its perimeter for load security. To enhance strength, peripheral bottom stringers are included. Flexcon Container, 973-467-3323, www.flexcontainer.com.
Polyethylene structural foam pallet resists mold, infestationMade from high-density polyethylene structural foam that resists mold, bacteria and insect infestation, a 40 x 48 inch pal-let meets strict tolerances to work with automated packaging systems. The pallet offers one-piece molded flow-through construction to minimize trapped water and cross-contamination. Easily cleaned and sanitized, the pallet will not splinter, rot, rust or crease. To prevent products from slipping off the in applications where banding or strapping is not used, an optional 0.5-inch intermittent lip around the perimeter of the pallet may be speci-fied. tMF, 866-713-9446, www.protechpallet.com.
injection-molded rackable, stackable and nesting palletsHigh pressure, straight-injection-molded pallets are offered in two styles: nestable (NP) and heavy-duty rackable (RP). The NP line is intended for grocery distribu-tion, food service, convenience store distribution, export and general manu-facturing. The RP line is ideal for food processing/packaging, pharmaceutical, chemicals, paper, captive distribution and pooling. Both styles are made from 100% recyclable, high-density polyethyl-ene or polypropylene and use 10% less plastic than comparable pallets, reducing their carbon footprint through the use of less materials and their lighter weight. Monoflo international, 540-771-3064, www.miworldwide.com.
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Untitled-1 1 7/21/10 9:55 AM
Product showcase
sorter processes 100+ packages per minuteThe MB-100 multi-belt sorter for mid-range sor-tation handles and sorts a variety of products into high-density after-sort divert lanes or worksta-tions. Processing more than 100 packages per minute, the system han-dles package sizes from 6 to 36 inches weigh-ing up to 75 pounds. Modular in design, the 90° transfers and 30° diverts can be relocated when product sizes or field situations change to enhance space utilization and minimize footprint. The system is ideal for applications requiring pre-sorting, value-added stations, kitting, pre-shipping and shipping. HK systems, 262-860-6715, www.hksystems.com.
Wipe-on label printer applicator Applying labels up to 40% faster than standard tamp applicators, the model 450W label printer-applicator uses a high-speed, wipe-on module. The module is powered by fans, which create a vacuum that holds the label in place prior to application. As the product passes the applicator, the label is applied, then wiped down by a follow-along roller to create adhesion without skew. For easy servicing, the stainless steel base cabinet offers easy access. The applicator accepts labels from 3 x 4 inches to 6 x 13 inches. All settings are made through a color touchscreen operator interface. For corner wrapping, an optional secondary wipe can be added. id technology, 888-438-3242, www.idtechnology.com.
automated order fulfillment, storage systemComprised of a dense 3D grid of self-supporting bins, the AutoStore order fulfillment and storage system incorporates a series of independent robots to move the bins. Providing dynamic pick locations, no shelving and automated, goods-to-person order fulfillment, the system optimizes storage density and pick efficiency for small cases, piece-picked items and resid-ual product storage. The system can be adapted and expanded for changing business conditions or retrofitted into existing facilities. swisslog, 757-820-3400, www.swisslog.com.
Multi-colored leds direct pickingAllowing multiple order fillers to work in a single zone to offset peak demand, the Trak3 pick-to-light system features multi-colored indicator lights for color-coded directed picking. This enables up to four order fillers per zone for simultaneous fill-ing of multiple orders, or the ability to direct operators to perform value-added services. The energy-efficient LED displays are easy to read, simple to install and require minimal training. The system includes at-a-glance workload status screens so supervi-sors can assess zones and view deployed workers with their asso-ciated color during demanding times. intelligrated, 513-881-5239, www.intelligrated.com.
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Product showcase
Untitled-1 1 4/6/2010 3:54:41 PM
Protect personnel around loading docksThe barrier rail industrial safety system provides a physical blockade to delineate high-traffic areas within a facility and protect personnel around loading docks and other areas. Offered in single- and double-rail heights of 17 and 43 inches, respectively. The barrier is easy to install, remove and relocate. The system features 12-inch rail panels fabricated from high-strength, 14-gauge steel. Secured by a base plate, three differ-ent column designs (end, corner and interior) are offered to sim-plify layout and expandability. Quick-connect hangers secure rails to the columns without hardware for easy lift-out and quick access. For durability, a powder-coat paint finish in one of 14 colors may be specified. Cubic designs, 800-826-7061, www.cubicdesigns.com.
Budget-friendly cushion, pneumatic tire iC trucksThe internal combustion S50CT cushion tire and H50CT pneumatic tire lift trucks offer streamlined functionality, making them cost effective for moderate-duty use. The trucks feature sealed electrical connectors, O-ring face seal fittings on the chassis and operator-friendly ergonomics with extra foot space and adjustable tilt-ing steer column. Easy to operate, both models offer enhanced fuel economy and lift up to 5,000 pounds. To navigate tight spaces, an electronically controlled transmission produces smooth direction changes. As options, an integral sideshifter optimally positions loads, while electronically controlled inching yields better load positioning control. Hyster, 800-497-8371, www.hyster.com.
Move air in any direction with pivoting, oscillating fanIdeal for operations that lack overhead space, the Pivot 180 fan can be installed on a column or other vertical structure. The oscillating fan allows generated air to radiate 100 feet outward, enveloping a 180° arc from side to side for a coverage area of 12,000 square feet. For more concentrated air movement, the oscillating function can be switched off and the fan aimed in one direction. The fan also pivots up and down. Features include a touch pad and dial controller to adjust air speed and a light-weight, low-profile cage. Big ass Fans, 877-244-3267, www.bigassfans.com.
staging buffer for food handlingTo increase warehouse performance in food production, whole-sale and retail facilities, the multi-shuttle automated storage and retrieval staged buffer system increases throughput up to four times over conventional systems with a 50% reduction in footprint. Capable of fitting into overhead spaces and under or over obstructions, the flex-ible system consists of multiple levels of AS/RS rack structure, shuttles, conveyor and soft-ware. Each level of the rack structure includes input/output conveyor and a shuttle that travels horizontally to access loads stored in the rack structure (typically totes or trays). An extraction device on each shuttle accesses the loads in the rack. dematic, 616-913-5931, www.dematic.us.
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Friction drive conveyor follows i-beam pathOffered as an alternative for overhead and inverted power and free conveyors, a friction drive conveyor system uses drive-wheel technology to move loads. The system runs on I-beam, eliminating cus-tom track sections and making the system easier to install and maintain. The con-veyor offers a smooth continuous flow of products up and down inclines and trav-els up to 240 feet per minute. A heavy-duty model moves loads up to 2,500 pounds; the light-duty model moves 250-pound loads. For speed adjustments, the conveyors are controlled by variable frequency drives. Jervis B. Webb, 800-526-9322, www.jervisbwebb.com.
iC trucks with cushion, pneumatic tiresLifting up to 5,000 pounds, the GC050LX cushion tire and GP050LX pneumatic tire internal combustion lift trucks offer agility and maneuverability. Ideal for moderate-duty applications, both mod-els use 12% less fuel than comparable vehicles to move more loads per gallon. Features include heavy-duty construc-tion with basic features. Streamlined and easy-to-operate, the trucks use an electronically controlled transmission for smooth direction changes and sim-plified navigation in tight spaces. For
operator comfort, an adjustable steering column may be tilted and extra foot room is included. Optionally, an integral side shifter optimizes load positioning. Yale Materials Handling, 800-233-9253, www.yale.com.
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sales oFFiCesCt, De, FL, ma, mD, me, mi, nh, nJ, nY, Oh, pa, ri, Vt, WV, eastern Cansteve McCoy, national Sales Director 508-261-1120 Fax: 508-261-1121 [email protected]
ia, iL, in, KS, mn, mO, nD, ne, SD, Wi, Central CanBob Casey, District Sales Director 847-223-5225 Fax: 847-223-5281 [email protected]
ar, aZ, Ca, CO, iD, La, mS, mt, nV, OK, Or, tX, Ut, Va, Wa, WY, Western CanPaul Zampitella, District Sales Director 508-663-1500 x307 Fax: 877-330-7436 [email protected]
aL, DC, KY, FL, ga, nC, pa, SC, tn, Va, WV greg Bolen, District Sales Director 704-875-7977 Fax: 866-680-5930 [email protected]
WeB oPerationsClive PurchaseDirector, Web Operations [email protected]
direCtor oF online salesPaul Zampitella508-663-1500 x307, [email protected]
CustoM artiCle rePrintsreprint management Servicesthe YgS group (800)290-5460, x100 [email protected]
MagaZine suBsCriPtionsFree magazine subscriptions available at www.mmh.com/info/subscribeModern Materials Handling e-mail: [email protected] Handling Product News e-mail: [email protected] x 294 mail: peerless media, pO Box 1496, Framingham, ma 01701
eneWsletter suBsCriPtionsKeep up with the latest industry news and resources. Sign-up for our FREE enewsletters at www.mmh.com/info/subscribe
Business staff
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Regardless of the setting, air movement is crucial to the success of any establishment. With over 40,000 fans in circulation, Big Ass Fans has spent the past decade perfecting the science behind air movement so facilities worldwide can benefit from the latest advancements in large diameter, low speed fan technology. Distribution centers, warehouses and manufacturing plants are notorious for fluctuating temperatures. Big Ass Fans are designed to combat those temperature variances to provide maximum comfort. The unique airfoil and winglet design allows the fans to lift air up and over machinery and racking, maintaining constant, steady air flow year-round.
Every ceiling, wall-mounted and mobile Big Ass Fan is custom engineered with patented, award-winning aerodynamic designs, improving air circulation in spaces with or without existing HVAC
systems. Though large and powerful, they are also incredibly energy efficient relying on very small motors, particularly relative to the volume of air movement generated. The perfection of the design is owed to the engineering team, valuable customer input and achieving ISO certification to reinforce our commitment to overall product integrity.
Covered by one or more of the following U.S. Patents: 6,244,821; 6,589,016; 6,817,835; 6,939,108; 7,252,478; 7,284,960; D587,799; D607,988 and other patents pending.© 2010 Delta T Corporation dba The Big Ass Fan Company. All rights reserved.
As the makers of sustainable products, Big Ass Fans supports a significant number of LEED NC v2.2 credits sought by architects, engineers and designers. We engineer fans capable of reducing energy costs today and in the future – a prerequisite for building products engineered to last.
Ask how Big Ass Fans contributes to LEED® credits in: Optimized Energy Performance; Enhanced Refrigerant Management; Minimum Indoor Air Quality Performance; Increased Ventilation; Thermal Comfort – Design; Innovation in Design.
Products include:• The 8- to 24-ft Powerfoil®X™
and Powerfoil®X Plus™
• The 8-ft mobile AirGo™
• The 6-ft Pivot™180, • The 12- to 20-ft Element® • The 8- to 10-ft Isis®
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mmh.com Modern Materials Handling / M o n t h 2 0 0 8 51
modern PROFILES
WHAT WE DO: Everyday, CHEP issues, collects, conditions and reissues more than 300 million pallets and con-tainers. These durable platforms help manufactur-ers and growers transport their valuable products to distributors and retailers throughout the supply chain safely and efficiently.
OPERATIONS:More than 500 service centers around the world are key to the successful collection, repair and issuing of pallets and containers.
CONTROL:Our asset base is 385 million pallets and contain-ers strong. And we handle more than 3 million equipment movements everyday.
SAVINGS:Our unique pooling system enables users to reduce the need for capital expenditures and con-centrate on both their day-to-day operations and core business competencies.
SERVICE:We service more than 345,000 customer locations including many of the world’s largest companies: Procter & Gamble, SYSCO, Kellogg’s, Kraft, Nestle, Ford and GM.
PEOPLE:7,000+ experienced professionals
SCALE: 46 Countries and Growing
EXPERIENCE: Established in 1954 (50+ Years of Pooling Experience)
SUSTAINABLE:See for yourself at www.chep.com/knowthefacts
ADVANCED:Watch how customers do business with CHEP at www.chep.com/portfolioplus
INNOVATIVE:Our Innovation Center delivers value to our Customers by testing and validating their own material handling practices and products as a complimentary service. Everyday.
LEARN:Want to learn more? Give us a call or visit our website.
CHEP8517 South Park CircleOrlando, FL [email protected]
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Over the last several years CLARK Material Handling Company has become a leader in providing fi nancial solutions to its custom-ers. Farruk Ghani, Vice President Finance indicated that “CLARK Material Handling Financial Services has greatly contributed to the excellent growth of the company through fi nancial programs tailored to customer needs”.
CLARK offers a wide variety of fi nancing options that help reduce a customer’s monthly payments and may lower debt on their balance sheet. CLARK provides a full compliment of commercial leasing options including both operating and capital leases, with great incentives such as 0% interest available up to 36 and 60 months respectively, as well as subsidized interest programs that are avail-able for up to 84 months. CLARK’s residual lease programs offer higher residuals and low interest rates resulting in lower monthly payments for CLARK customers.
CLARK’s new “0% for 60 Months” capital lease ($1.00 Buyout) program reduces a customer’s cost of ownership and increases cash fl ows for qualifi ed customers. And it may result in substantial
tax savings as well. Under the recently enacted HIRE Act of 2010 which extended the 2008 / 2009 enhanced Section 179 deductions for the purchase of qualifi ed equipment, eligible businesses may be able to write off up to $250,000 of qualifi ed equipment purchases (be sure to contact your tax advisor or accountant for more details on Section 179).
CLARK’s no-hassle process and fairness in fi nancing helps CLARK’s customers make the right decisions when purchasing material han-dling equipment. To learn more about CLARK’s fi nancial services including its new “0% for 60 Months” program contact your local CLARK dealership or visit www.clarkmhc.com.
Outstanding Customer Financing Opportunities through CLARK Material Handling Company
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ADVERTISEMENTPROFILES GREENING THE INDUSTRYLeading Edge GREEN Power Solutions
LEADING EDGE POWER SOLUTIONS1-877-7HAWKER www.hawkerpowersource.com
At HAWKER, green is not a color, it is a culture. Since the introduction of energy-saving LifePlus® smart charging technology over 25 years ago, HAWKER has led the materials handling industry with clean, innovative products and processes that maximize productivity and minimize environmental impact.
High-frequency smart chargers deliver the greatest effi ciency and highest power factor available – reducing utility consumption and demand while prolonging battery life and reducing water usage. HAWKER’s LifePlus®
TC3 and LifeSpeed™ 3000 high-frequency smart chargers offer the operational fl exibility of opportunity and fast charging with least-cost electrical effi ciencies.
Resource-friendly batteries. HAWKER, winner of the American Environmental Review award, is a model for controlling environmental integrity at the point of manufacture. Our Ooltewah, TN plant is the industry leader in environmental compliance, and was the fi rst to introduce Water Less® technology which utilizes 20% less water than standard batteries. Of course, HAWKER offers a recycling program that meets all EPA standards and guidelines.
Single-source green solutions. HAWKER manufactures both batteries and chargers. This allows HAWKER to design complete power systems that can optimize productivity and minimize cost. HAWKER’s exclusive “Harness the Power” on-site assessments analyze operations and provide specifi c recommendations for improving material handling productivity.
Call 1-877-7HAWKER to learn more about these Leading Edge GREEN Power Solutions.
Companies that simultaneously work to cut their carbon footprint and streamline their supply chains can realize substantial economic and environmental benefits.
HK Systems, the leading automated material handling and supply chain software total solutions provider, understands the greening of the supply chain can be a difficult and complex process. HK has developed and designed “green” facilities that resulted in lower operational costs, waste and environmental impact.
Discover how HK Systems can and your “green” facility today.
Visit www.hksystems.com or call 1-800-HKSYSTEMS to learn how automation and software will empower your green initiatives.
W W W . H K S Y S T E M S . C O M
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Komatsu Forklift U.S.A.— Corporate Profile In March 2009, Komatsu Forklift U.S.A., Inc. announced that it would close its production facility in Covington, Georgia, and transfer forklift production to Ko-matsu America Corporation‟s production facility in Newberry, South Carolina. Komatsu Forklift U.S.A. has also moved their headquarters to the Komatsu America Corporate offices in Rolling Meadows, Illinois. New Products To further Komatsu „s commitment to the North American market we are introducing new products. That product ex-pansion is already underway as Komatsu rolls out new offerings for our customers. The new products include three-wheel and four-wheel TOTAL AC models of electric cushion tire and pneumatic tire lift trucks in addition to narrow-aisle reach trucks. “The market has been gradually changing to more electrics, and as regulations mandate cleaner engines, we continue to anticipate more companies looking toward greener alternatives with less environmental im-pact.” Allmandinger says. “We wanted to introduce products that would provide those alternatives to our customers.” For further information, feel free to visit our website at www.kfiusa.com Komatsu Forklift U.S.A. One Continental Towers 1701 W. Golf Road Rolling Meadows, IL 60008
Komatsu Forklift’s new AM50 model
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Jungheinrich®:Solving distribution challenges.
High-tech lift trucks for every warehouse application. Designed specifically for warehousing markets, the Jungheinrich® North American product offering includes electric counterbalanced, narrow aisle and walkie products with capacities ranging from 2,000 to 11,000 pounds. Our extensive line of forklifts is well-suited for diverse product applications, from stacking and order picking to warehousing and food processing.
Ergonomics designed for the real world. With Jungheinrich proprietary 3-phase AC technology and the quality and ergonomics you would expect from German engineering, Jungheinrich warehouse products deliver maximum productivity with low cost of ownership.
Supported by MCFA’s extensive North American dealer network. Backed by more than 300 dealer and service facilities throughout the United States, Canada and Mexico, our industry-leading dealer network completes the Jungheinrich experience with professional, timely and reliable support.
To learn more about Jungheinrich and our full warehouse product line, visit jungheinrich-lift.com.
Copyright © 2010 by MCFA. All rights reserved. All registered trademarks
are the property of their respective owners.
Ergonomics. Efficiency. Solutions.
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LANDOLL CORPORATIONMATERIAL HANDLING PRODUCT DIVISION1900 North Street · Marysville, KS 66508
785-562-5381 · Fax 785-562-4853 · [email protected] · WWW.LANDOLL.COM/MHP
LANDOLL EXTENDS BENDI 4 WHEEL MODELSTO INCLUDE NEW VNA VERSION,
MODEL B40VAC WITH 4,000 LB. (1,818 KG) CAPACITY• Basic Capacity - 4,000 lbs. (1,818 kg) at 24” (600mm) Load Center• 72” (1.87M) Stacking Aisle with 48” x 40” (1.2M x 1M) Load• Triple Masts with Lift Heights to 30’ (9.14M) • Narrow 32” (813mm) Wide Front Axle for Improved Maneuverability• AC Traction and Hydraulic Motors and Controllers – No Motor Brushes• One AC Hydraulic Motor – No Power Steering Motor• 110 FPM Lift Speed and 7 MPH Travel Speed• Increased Run Time Compared to Comparable DC Model• Improved Operator Comfort and Safety• Low Cost of Ownership with Greater Productivity
mmh.com MODERN MATERIALS HANDLING / A U G U S T 2 0 1 0 53
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Psion Teklogix: Over 40 Years of Mobile Computing ExpertisePsion Teklogix is the pioneer in quality mobile handheld computers and their application in the in-dustrial b2b markets around the world. Our mobile devices are rugged, resilient and built to last. They are tailor-made solutions through our open inno-vation philosophy in which we co-create mobile hardware, software and services, together with our customers and partners on our community site, ingenuityworking.com. What is Ingenuity Working?Ingenuity Working is a place where Psion Teklogix along with our customers, partners and developers can utilize social media tools to share information, co-develop solutions and accelerate the way we respond to market needs. Having an open platform of communication allows everyone to be involved
fi rst-hand in the development of new products and services. Additionally, you can use Ingenuity Work-ing to access expertise of developers and other partners in the Psion Teklogix ecosystem or start a dialog on a topic of interest to you. By sharing information and using Ingenuity Working to foster ongoing, real-time dialog that transcends compa-nies we hope to collectively drive technology that better meets our customers needs. Join the conversation today! Log on to ingenuity-working.com
psionteklogix.comPsion Teklogix
3000 Kustom DriveHebron, KY 41048
800-322-3437
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Business Runs Smarter With RaymondFor nearly 90 years, The Raymond Corporation has been a leading global provider of material handling solutions that improve space utilization and productivity, with lower cost of operation and greater operator acceptance. Raymond’s history of innovation in warehousing and distribution operations is unmatched, beginning in the 1930s with the invention of the first hydraulic hand pallet truck. Soon after, Raymond introduced the first double-faced wooden pallet, making it easier and more efficient to transfer goods — forever changing the material handling world.
Throughout the years, Raymond has taken a leadership role in creating new solutions for our customers, enhancing productivity while lowering the cost of operations. From the first narrow aisle lift truck in the 1950s to the first AC-powered lift truck in 2001 to the introduction of the Raymond iWarehouse® fleet optimization system in 2008, Raymond is committed to generating the right solutions and right support to help meet the needs of our customers.
Raymond’s CustomCare™ philosophy demonstrates that we are committed to understanding our customers’ businesses and delivering a comprehensive package of custom solutions and personalized service that will help drive their costs down while running their operations better, smarter and faster.
Sustainable Material Handling
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From our beginning in 1913 as a maker of wooden crates, Rehrig Pacific Company has produced a continuous stream of sustainable transport packaging products for industry.
Today, Rehrig is a world leading manufacturer of reusable and recyclable plastic pallets, sheets, bins and containers. Our various product lines from milk crates to distribution pallets save millions of tons of packaging waste from reaching landfills every year.
A typical Rehrig customer is looking for reusable storage and transport containers or platforms to handle their products efficiently through the supply chain. Driving out costs and reducing their carbon footprint are vital factors. Depending on customer requirements, our products can contain post-consumer recycled materials (PCR) including HDPE from
milk jugs or detergent bottles. Post-industrial recycled materials such as PP and HDPE from old crates, trays and pallets can be reused up to100%.
Rehrig Pacific roll-out carts and collection containers are extensively used in recycling and waste collection programs throughout North America. Rehrig directly closes the loop in many programs by buying the PCR collected which helps cities expand their recycling programs and dramatically reduces plastic packaging waste. Rehrig now offers programs to major retailers to collect and reuse their cardboard boxes instead of sending perfectly good packaging to landfills or recycling, before its time.
For almost 100 years, Rehrig Pacific Company has been a leader in sustainability and environmentally-friendly business practices.
For more information contact:
Steve Harrison, Sales DirectorMaterial Handling Business GroupRehrig Pacific Company1000 Raco CourtLawrenceville, GA 30045Phone: 770-339-9888Toll-Free: 800-241-9693Email: [email protected]: www.rehrigpacific.com
For more information contact:
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sonoco.com
Sonoco is a proud member of the Dow Jones Sustainability World Index (DJSI), a global composite index that recognizes leading global companies in terms of economic performance, environmental stewardship and
social responsibility. Sonoco also has been ranked as one of the 100 greenest large companies in the United States in Newsweek’s inaugural Green Rankings, which evaluated the country’s 500 largest companies on their environmental performance, green policies and reputation.
The new Firma line of carrier products from Sonoco was designed and built to overcome the drawbacks of using conventional pallets for the storage and transportation of goods around the world.
Sonoco’s experience in protective packaging and commitment to sustainability led the company to investigate cleaner, greener and more eff ective ways to transport a wide variety of products. Unlike heavy traditional pallets that can splinter, break or damage products, Firma carriers are designed to be lighter and cleaner, reducing freight costs and lessening the potential for workplace injuries and debris.
To learn more about which Firma innovation is right for you, visit sonocotranspack.com or call 888/875-8754.
Sonoco company profi le
Founded in 1899, Sonoco (NYSE: SON) is a $3.6 billion global manufacturer
of industrial and consumer products and provider of packaging services, with more
than 300 operations in 35 countries, serving customers in some 85 nations.
SP10094ProfileAd_MMHisland.indd 1 8/5/10 12:40:16 PM
Stanley Vidmar Offers Enhanced Adjustable Racking Product Line
Stanley Vidmar, a manufacturer of premium custom storage solutions, recently unveiled its enhanced STAK product line that combines the fl exibility of an adjustable rack system with a built-in picker. A viable storage solution for virtually any industry, the new STAK product line offers more fl exibility in terms of vertical storage, load capacity, and space-savings.
Vidmar’s base model of adjustable racking (known as STAK) is comprised of a system of removable, adjustable pallets and a captive lifting and handling device that facilitates storage and retrieval in as little as 2 minutes. One operator can effi ciently manage loads weighing up to 4,000 lbs. in less than 250 square feet.
STAK Max possesses the same features as STAK but can be constructed up to 24 feet high. Each pallet can accommodate loads up to 2,500 lbs. Six additional pallet widths are available (19 sizes total) that provide greater fl exibility, reduce total system cost, and offer a hoist upgrade to double the standard operating speed of the system. Vidmar also offers fl ow-through pallets for storage areas equipped with sprinkler systems.
Vidmar’s STAK Max 5000 pushes load capacities even further—up to 5,000 lbs. with all the features and benefi ts of STAK Max.
For more information on Vidmar storage solutions, call 800-523-9462 or visit StanleyVidmar.com.
11 Grammes Road • Allentown, PA 18103800-523-9462 • StanleyVidmar.com
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8 0 0 -2 2 6 - 0 0 0 9 • t o y o t a f o r k l i f t .c o m /m m hf a c e b o o k .c o m / To y o t a Fo r k l i f t
Toyota Material Handling, U.S.A., Inc. is addressing the current market challenges and maximizing opportunities in industries that show great promise—such as theelectric lift truck market. Last year electrics represented 67 percent of all lifttruck sales. Toyota has listened closely to its customers’ needs in this growing market and responded with the new line of 8-Series 4-wheel AC electric lift trucks.
As the No. 1 selling lift truck supplier in the U.S., this year Toyota introduced its new line of 8-Series 4-wheel AC electric lift trucks that are ideally suited for virtually every indoor material handling need. These AC-powered lift trucks deliver longer runtimes and offers improved performance speeds — up to 21 percent faster travel speeds over the previous model.
The new 4-wheel models are manufactured exclusively at the company’s zero-landfill facility in Columbus, Ind., Toyota Industrial Equipment Mfg., Inc. Today, 99 percent of Toyota lift trucks sold in America are manufactured in the U.S.
Toyota is positioned to meet customers’ needs with a total of 189 dealership locations throughout the United States offering comprehensive customer service and support, including one-stop shopping for both new and used lift trucks, rentals, parts and service, fleet servicing and financing.
Charging Ahead: Toyota Looking Forward
As the No. 1 selling lift truck supplier in the U.S., this year Toyota introduced its new line of 8-Series 4-wheel AC
Charging Ahead: Toyota Looking Forward
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Racks
Accessorize for faster product mix swaps
New slotting accessories for the supplier’s SelecDeck carton flow sys-tem enable fast, cost-effective prod-uct mix changes. Offerings include drop-in lane dividers that fit into slots along the load side and permit cartons to be added, changed and sorted by size and SKU. To eliminate adhesive labels, a sliding label holder can be placed anywhere along the front of the case flow bed for hassle-free reprofiling. Additionally, the SelecDeck system retrofits existing structural roll-formed racks with-out replacing shelf beams. Frazier Industrial, 800-614-4162, www.frazier.com.
Steel axle carton flow tracksCarton Trax steel axle carton flow track features abuse-resistant 1.125-inch dia-meter polyethyl-ene rollers and chromate-coated steel axles that are free-floating to prevent binding for durable, smooth operation. The heavy-duty tracks incorporate a specially engineered steel axle tooth for close wheel placement that enhances reliability. For carton support, the wheels are placed on 1.5 inch centers. The grav-ity-driven tracks include durable, galvanized side channels, making them ideal for freezer and food stor-age applications. UNARCO Material Handling, 800-862-7261, www.unarcorack.com.
Racking resists earthquakes
Offering greater lateral stability than the supplier’s standard pallet rack, the PLUS rack is ideal for areas where seismic activity or other severe conditions are likely. The rack’s beam end connectors feature four prongs to create a tighter connection with more surface area between the beam and the upright post. Beams are welded 3 inches down from the top of the connector to evenly distribute loads across all four prongs. To pre-vent accidental dislodging, all beams have a beam locking key. Upright frames offer heavy-duty 35-square-inch, 0.325-inch thick footplates with four anchoring holes. Standard frame heights range from 48 to 240 inches. Penco Products, 800-562-1000, www.pencoproducts.com.
Customized push back rack systemsPush back, high-den-sity storage rack permits selectivity and dense storage, making it ideal for storage of multiple SKUs and mul-tiple pallets of individual SKUs. The system includes an integrated cart system mounted on rails in the rack structure at a slight pitch. Pallets are placed on the carts as many as six-deep per storage lane. Each racking system is custom-configured to match specific pallet and load size: width, depth and height. Elite Storage Solutions, 508-230-5755, www.elitestoragesolutions.com.
MMH100301ShowProds_ID.indd 46 3/10/2010 3:52:18 PM
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MMH1008_Profiles2.indd 57 8/11/10 8:47 AM
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Modern: ria is going to co-locate its automate show with ProMat in 2011 for the first time. Why now?
Burnstein: The time is right. Historically, 60% to 70% of industrial robots have gone into the auto industry. In the early years, it was welding. Over time, however, materials handling has become the leading application. While there’s a lot of materials handling in the auto industry, we think there is opportunity in other industries including food and beverage, pharmaceutical and distribution. In light of that, it’s time to position our show with an event that has a reach into those industries.
Modern: are your members seeing interest in robotic technology from distributors?
Burnstein: Robots are being used now to do everything from making sushi to assisting in surgery. And, there is definitely a movement to get robots into the warehouse. We’re seeing some interesting things with industrial robotic arms on mobile bases. There are developments around two arm robots that can work side by side with people. Eventually those could be mobile. Now, when you get robots working side by side with people, safety becomes important, but the technology is moving toward intrinsically safe robots.
modern 60 Seconds with...
Jeff Burnstein
Robotic Industries Association (RIA) title: President, RIA
location: Ann Arbor, Mich.
exPerience: 26 years with the RIA, three years as president
Modern: robots aren’t new. What’s driving that interest?
Burnstein: Several factors. The technology has improved. It’s more reliable, and it’s more affordable. There are new products, particularly for warehousing, and new companies that did not exist before. On the other end, there is a recognition that automation gives us the advantage
we need to compete with cheap labor. Businesses believed that everything had to go somewhere else because we couldn’t compete with low-cost labor. Now, I think people are realizing there are drawbacks to shipping everything off shore. Automation is getting a second look with companies that never thought about it before. M
Jeffrey Sauger/Getty Images
MMH1008_60Sec.indd 58 8/10/10 12:55 PM
Modern Materials Logistics Management Supply Chain Management
• Automation
• Conveyors & Sorters
• Inventory & Picking
• Loading Dock Equipment
• Mobile & Wireless
• Shipping Pallets
• Storage Systems
• Containers & Totes
• Energy & Sustainability
• Lift Truck & Fork Lift
• Handling & Warehouse Ergonomics
• Packaging
• Software & Technology
www.mmh.com/criticaltopics
Critical Industry News at Your Fingertips!
Critical Topic areas help you develop strategies and expand your knowledge. Each topic provides you with the news, information, and resources you need — each day.
CRITICAL TOPICS
Modern Materials Logistics Management Supply Chain Management
MMH_CriticalTopics_House.indd 1 8/10/10 1:17 PM
Patented LIFEPLUS® technology has a long, proven track record of substantially reducing charging costs and the cost of operation:
• LIFEPLUS® features the highest conversion efficiency and highest power factor – significantly reducing electrical consumption and demand charges.
• LIFEPLUS® features ‘Plug and Play’ flexibility, responding dynamically to charge a wide range of battery voltages and capacities without user intervention.
• LIFEPLUS® is approved for use as an ‘Opportunity’ charger.• POWERLINE™ and ENERGY-PLUS™ batteries charged on a LIFEPLUS® charger are warranted for 6-years or 1,800 cycles.
The New LIFEPLUS® TC3 will put these exciting new capabilities to work for you:
• Internet Readiness – The TC3 has its own IP address and can be remotely accessed via local network.
• Enhanced Opportunity Charge Capability – The TC3 features an opportunity charge profile with higher output rates to make the most of intermittent charging opportunities.
• Battery Boss® Control – The TC3 can interface with the HAWKERBattery Boss® control module.
Ask your HAWKER Representative to show you how much a LIFEPLUS® charger can save you.
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