Taking out the Touches at BRG Sports 18

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

mmh.com

SPECIAL PACKAGING ISSUE ® October 2014

Taking out the touches at BRG Sports 18 Lewis Hornsby, vice president of global logistics and fulfillment, BRG Sports READER SURVEY How pallet trends stack up 28 + Webcast: Annual Pallet Report Wednesday, Oct. 15 at 2:00 p.m. ET mmh.com/pallets2014

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Swisslog’s board of directors supports combination with KUKA KUKA AG, BASED IN GERMANY, has announced tions) will remain in place. The release an all-cash public offer to the shareholders said the combination with KUKA will of Swisslog Holding AG for all publicly held “strengthen Swisslog’s market posi- registered shares for a price of $1.42 per share. tion through added growth potential, Swisslog’s board of directors recommended the improved access to key technologies offer be accepted. This represents a purchase and broadened offering.” price of $356.4 million and an enterprise value In an interview, Bill Leber, direc- of $372.2 million including net liquidity and tor of business development and pension liabilities. The offer represents an 8.9% marketing for Swisslog, told Modern he does not premium to the closing price on Sept. 24, 2014, expect any operational changes as a result of the and a 15.4% premium over the 60-day volume acquisition. “For us, it’s business as usual,” he weighted average price of Swisslog shares. said. “We have worked with them for years as a According to a recent release, the Swisslog supplier, and have become very familiar with their brand, business model and both divisions (health- capabilities over our long relationship. I think this care solutions and warehouse and distribution solu- development is a positive.”

CEMA: 2014 on track to be Toyota Industries Corporation to another record year acquire the forklift business of Tailift THE CONVEYOR EQUIPMENT TOYOTA INDUSTRIES CORPORATION (TICO), parent com- Manufacturers Association pany of Toyota Material Handling USA (TMHU), has entered (CEMA) reported that overall into a definitive agreement under which TICO will acquire the industry orders (bookings) for forklift business of Tailift Co. the first six months of 2014 Operating mainly in Taiwan and China, Tailift is a Top 20 increased 2.59% compared to manufacturer of electric and internal combustion forklifts as the same period in 2013, with well as industrial machine tools. Established in 1973, the com- total orders of $5.32 billion. pany employs 1,000. Tailift’s forklift department has a produc- Bob Reinfried, executive vice president of CEMA, tion capacity of 28,000 forklifts per year. told Modern that executives representing CEMA The agreement was announced in September 2014 by member companies at the Fall Meeting expressed TICO president Akira Onishi. optimism for the remainder of 2014. “We had a record The Forklift Division of Tailift has manufacturing plants in year in 2012, and even though last year dropped 2%, Taiwan and China and has its strength in developing, manu- it was still our second-best year ever,” Reinfried said. facturing and selling forklifts that are mainly targeted toward “2014 is on track to be a record year yet again.” emerging markets. As a result of this optimism, the updated forecast is for a 5% increase in 2014 shipments, up from the March 2014 forecast of a 2% increase. CEMA estimates Manufacturing jobs bill clears House industry billed sales (shipments) for the first six months of Representatives of 2014 increased 5.82% compared to the same period in 2013, with total shipments of $5.35 billion. BIPARTISAN MANUFACTURING jobs legislation written by U.S. Sens. Sherrod Brown (D-OH) and Roy Blunt “This bill keeps innovation and production here at (R-MO) cleared the U.S. House of home,” Brown said. “Our nation is most successful when Representatives on September 15. we work together—and a Network for Manufacturing The Revitalize American Innovation would foster public-private partnerships that Manufacturing and Innovation Act (RAMI) would establish give small businesses, industry leaders and research a National Network of Manufacturing Innovation (NNMI) institutions the tools they need to compete on a global and create thousands of high-paying, high-tech manufac- scale. These regional, industry-led hubs will leverage turing jobs while enhancing the United States’ role as the local expertise and will create thousands of high-paying, world’s leader in advanced manufacturing. high-tech manufacturing jobs for American workers.” mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 3 The path to greater profitability is only five steps long.

ORBIS is the industry leader in reusable plastic pallets. That’s because we not only have the widest breadth of products, we also have a proven, five-step process for making your supply chain more cost efficient. Many of the world’s leading companies are realizing reusables can help them cut unnecessary costs on everything from fuel to utilities. A switch to plastic shouldn’t mean choosing between profitability and sustainability. Let us show you the path to improving both. Contact us to learn more.

orbiscorporation.com/plasticpallets a shift in thinking

Visit us in Booth E-6700 at PackExpo 2014 VOL. 69, NO. 10

® PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, Lewis Hornsby, WAREHOUSING AND MANUFACTURING vice president of distribution, BRG Sports

PHOTO: PETER WYNN THOMPSONG/GETTY IMAGES COVER STORY SYSTEM REPORT 18 Taking out the touches at BRG Sports 60 seconds with BRG Sports’ new DC was designed from the ground up as an omni- Dan Stanton channel, omni-brand distribution and manufacturing facility. 26 Synchronizing omni-channel fulfillment with WCS DEPARTMENTS & COLUMNS BRG Sports’ new facility relies on a warehouse control system and 3/ Upfront voice-directed picking to synchronize parallel pick and pack activities 7/ This month in Modern across pick modules. 14/ Lift Truck Tips: Operator training 16/ Packaging Corner: Labeling FEATURES 56/ Supplement: Warehouse/DC READER SURVEY 66/ Focus On: Totes & containers 28 How pallet trends stack up 70/ Pack Expo Preview Modern’s annual reader survey gives insight on pooling, customer 82/ 60 seconds with... compliance, used wood pallets and other trends, though price still rules as the top driver. NEWS EQUIPMENT REPORT 9/ Global materials handling products 34 Sizing an opportunity primed for strong gains through 2018 End-users and solution providers prepare for dimensional pricing 10/ PMMI study details beverage packaging models to upend their packaging processes—or realize they have been preparing for it all along. trends 11/ MAPI Quarterly Outlook: SPECIAL REPORT Broad-based growth 46 Top 20 automatic data collection suppliers Whether struggling or flourishing, suppliers are working to 12/ Energy efficiency investment to increase differentiate their products and services to keep pace with rapid in 2015 changes across the industry. 16/ Modex to return to Atlanta in April 2016 16/ Hamilton Caster president co-writes PRODUCTIVITY SOLUTION book to bring jobs back to U.S. 52 Protective packaging solution supports facility consolidation Modern Materials Handling® (ISSN 0026-8038) is published monthly by 53 New facility achieves compact footprint 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 with automatic palletizers copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 54 Robotic palletizing system enables USA. Periodicals postage paid at Framingham, MA and additional mailing ofﬁ ces. POSTMASTER: Send address changes to: Modern track and trace quality control Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in whole or part without written permis- 55 Suite of upgraded storage solutions sion of the publisher is prohibited. All rights reserved. ©2014 Peerless streamlines parts location Media, LLC. mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 4 5 moving you further Your satisfaction is our priority! New standard of big forklift truck. Excellent power and performance makes your business more profitable. Safety and durability are priorities in design of the equipment, An ideal arrangement of component parts ensures easy access and convenience for maintenance. A design based on human engineering relieves fatigue and increases operator’s efficiency. HYUNDAI Forklift trucks are made to meet your needs.

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EDITORIAL OFFICES 111 Speen Street, Suite 200 MICHAEL LEVANS Framingham, MA 01701-2000 GROUP EDITORIAL (800) 375-8015 DIRECTOR

Michael Levans Group Editorial dirEctor [email protected]

Bob Trebilcock ExEcutivE Editor Packaging: The final frontier [email protected] Noël P. Bodenburg of supply chain optimization? ExEcutivE ManaGinG Editor [email protected] ackaging is ready for its close up. Once was any doubt that traditional approaches are Josh Bond locked neatly into its own silo, the con- outgunned, it’s now abundantly clear that the associatE Editor [email protected] tinued momentum of e-commerce has fundamentals of materials handling are being Pturned the spotlight on packing processes rewritten,” says Bond. “That said, dim rates Sara Pearson Specter Editor at larGE and technologies as an increasingly fickle are not entirely a surprise, and have already [email protected] customer-base—both retail and B2B—has fueled a wave of innovation that shows that

Roberto Michel forced the hand of fulfillment operations to the industry is ready to meet the challenge.” Editor at larGE pick single-line, single-piece orders and ship On page 40, editor at large Sara Pearson [email protected] smaller, more frequent deliveries. Specter gives us a look at how print-and- Jeff Berman That monumental e-commerce growth, apply technology is keeping up with e-com- Group nEws Editor [email protected] along with the increased frequency, smaller merce. “Retail shippers can no longer afford size, and lighter weight of these boxes, has to rely on manual parcel packing stations,” Mike Roach not escaped the eyes of parcel and LTL car- says Specter. “Instead of shipping 12,000 crEativE dirEctor [email protected] riers. In fact, carriers are busy recalculating items in 1,000 cartons, we’re now sending shipping charges based on the dimensions 12,000 individual packages with one item. Wendy DelCampo art dirEctor of the parcel, not just the weight, in an ef- This is simply going to overwhelm traditional [email protected] fort to take the “air” out of the truck. pack station operators.” Daniel Guidera In terms of what this means for freight rate Editor at large Roberto Michel offers illustration increases to U.S. retailers, I’ve heard estimates highlights from Modern’s 2014 Pallet Usage [email protected] of anywhere from $500 million to in excess of Survey, the most comprehensive look at how

Brian Ceraolo $1 billion. Whatever that number ends up be- readers are managing this fundamental, yet prEsidEnt and Group publishEr ing, dimensional weight (dim weight) pricing critical element of their supply chain. “While [email protected] is coming, and your packing processes need price remains the top driver of usage, the pEErlEss MEdia, llc to be front and center in discussions across needle is moving on other influencing factors www.peerlessmedia.com your supply chain management team if you and use trends such as customer compliance,

Kenneth Moyes plan to mange this inevitable cost increase. the need for better tracking due to e-com- prEsidEnt and cEo To help further your understanding, merce, and an increase in pooling,” he says. Eh publishinG, inc. Modern offers our 2014 Packaging Issue, a And to get a glimpse of what you can primer to take along to Pack Expo Interna- expect to see at the show, we offer a Pack MAGAZINE SUBSCRIPTIONS Start, renew or update your FREE tional in Chicago (Nov 2-5). PMMI, the show Expo Product Preview (page 70) featuring magazine subscription at www.mmh.com/subscribe. organizer, tells us that they expect more technology and equipment designed to Contact customer service at: Web: www.mmh.com/subscribe than 50,000 attendees this year, so there’s a reduce costs, increase productivity, and mod- Email: [email protected] good chance you’re reading this issue at the ernize now mission-critical packaging lines. Phone: 1-800-598-6067 Mail: Peerless Media show in search of solutions. It’s been said that packaging is the P.O. Box 1496 Framingham, MA 01701 On page 34, associate editor Josh Bond next—and perhaps the last—frontier in explores how distribution professionals and supply chain optimization. It’s now clear that For reprints and licensing please contact Nick Iademarco at Wright’s equipment providers have been preparing to this once disconnected element now needs Media, 877-652-5295, ext. 102 or [email protected]. manage dim weight, a sea change that trans- to be plugged into to your greater supply

ENEWSLETTER SUBSCRIPTIONS portation analysts say is responsible for push- chain planning before your operations are Sign up or manage your FREE eNewsletter subscriptions at ing packaging out of the shadows. “If there left in the dust. www.mmh.com/enewsletters.

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ECONOMY Global materials handling products primed for strong gains through 2018 companies are looking for suppli- FREEDONIA RESEARCH HIGHLIGHTS GROWING DOMESTIC ers who can deal with the hardware, INTEREST IN AUTOMATION. software and the entire package going forward.” One segment that hasn’t been do- ASSOCIATE EDITOR BY JOSH BOND, ing well, Deneen said, is hoists and cranes, where growth is lagging as GLOBAL DEMAND FOR materi- extensively, and combined with ris- compared to lift trucks and convey- als handling products is projected ing U.S. labor costs, there are more ors. Deneen said hoist and crane sys- to increase close to 5% annually incentives to get into higher technol- tems are seen as a larger equipment through 2018 to $140 billion, accord- ogy,” Deneen said, adding that the investment that will be dependent on ing to new research by the Freedonia aftermarket is also becoming more improved macroeconomic indicators. Group. important as technology becomes Globally, Deneen said Brazil ap- According to the report, gains will more advanced. “It’s not just a mat- pears ready to post strong growth, be strongest for sales of advanced ter of fi nding, say, lift truck parts, but he is not as bullish about Bra- equipment such as automated which are available anywhere. Now zil as he is about India and China, conveyors and automatic guided vehicles (AGVs), which help curtail labor costs. Energy effi cient products such as electric lift trucks, the report added, will also see solid gains as end users seek to reduce costs. In a recent interview, Freedonia senior industry analyst Mike Deneen said the strong gains forecasted for automated equipment refl ect a shift in manufacturers’ preference toward products suited to integration into larger-scale factory automation and automated warehouse environments. Led by automated storage and retrieval systems (AS/RS), Deneen said that AGVs and robotics in the United States are primed for strong growth of nearly 6%. “Following the recession, many According a recent report, gains will be strongest for sales of companies don’t want to rehire advanced equipment such as automated conveyors. mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 4 9 where the investment outlook is very going forward. Things are going pretty Other highlights good. “China has been the hot thing well here at home, and the United Durable goods manufacturers will in the last 15 to 20 years, but there are States will continue to be an extremely account for nearly 50% of materi- some concerns that as labor costs go important player, but as Asia grows the als handling demand through 2018. up, at some point it might cool off a United States will make up a smaller Advances will result from increased bit,” Deneen said. “In any case, Asia share of the pie. As for Russia, it’s kind production in durable goods sectors will become a larger portion of the pie of a wild card right now.” such as machinery and fabricated metals. Sales of materials handling products to nondurable goods manufac- Visit turers will also see gains, refl ecting Live Demo: Complete strong outlooks for the chemical and #N-6106 the food and beverage markets. at Pack Expo Inline Palletizing System

PACKAGING PMMI study details beverage packaging trends and demands THE BEVERAGE PACKAGING industry in North America is expected to reach $26.3 billion in 2015, with plastic bottles leading the way in popularity, according to “Beverage Packaging — An Industry Assess- ment,” recently released by PMMI, The Association for Packaging and Processing Technologies. The study notes plastic continues to be the most widely used bottling material, accounting for more than 40% of the market, and bottles, with High Speed, Inline Palletizer approximately 55% of the market, are > Safety: Industry-leading category 3 safety system with fully the most popular packaging format integrated guarding and dual latching hoist pin system* > Flexibility: Add or modify patterns through the HMI using the adjustable programmable laner (standard) > Performance: 75 to 120 cases per minute and “Zero Time” changeover from one pattern / SKU to another > More standard features included from the industry’s largest palletizing solutions provider * Patent applied for

Scan to learn www.palletizing.com more! > > > > > A PMMI study reveals that plastic 1-800-628-4065 continues to be the most widely used bottling material.

10 O CTOBER 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com for beverages. Although they suf- 3.4% in 2014, 4% in 2015, and 3.6% in has shifted toward manufactured fered from a drop in soft drink sales, 2016. The 2014 forecast is an increase goods,” wrote MAPI Foundation aluminum cans are picking up steam from 3.2% and the 2015 forecast is chief economist Daniel J. Meck- as other beverage categories—such consistent with the June 2014 report. stroth. “Durable goods, equipment as energy drinks and microbrews—are Manufacturing will continue to grow and construction have long lives and more than making up for the lost faster than the overall economy. therefore are temporarily postpon- volume. Flexible pouches have experi- “The proximatedeposco_island-ad-print.pdf cause for faster 1 6/24/14able, especially12:18 PM during economic enced the slowest growth, but many industrial growth is that demand downturns and times of uncertainty.” respondents still anticipate increased adoption of fl exible beverage packaging down the road. Key to that, Deposco Bright Suite: the report says, would be products Supply Chain Applications in the Cloud. geared to consumers accustomed to beverages, such as juice, in pouches. Regardless of format, nearly all FRAGILE the interviews conducted for the study identifi ed packaging as the primary means for communicating Bright Order Bright Warehouse brand values to consumers. Expedite sourcing and fulfillment by Real-time inventory visibility with full The study also addresses key entering or flowing orders directly into WMS capabilities, such as receive, trends such as packaging size and Bright Suite. putaway, pick, pack and ship. dimension ratios, openings that offer a fi ner drinking experience, reseal- ability for portion control, different pack sizes to meet specifi c market demands, and colors and graphics to cut through the clutter on store C Bright Store Bright Performance shelves. Additional details are given Extend omni-channel fulfillment Monitor and gauge performance via M on trends, the supply chain, gov- capabilities and inventory visibility to your real-time, on-demand performance ernment regulation, concerns and Y physical retail stores. dashboards and reporting. additional needs of the industry. TheCM report can be accessed at pmmi.org.MY

CY MANUFACTURING CMY

K MAPI Quarterly Bright Source Bright Socket Take orders from all channels and Integrate and streamline data flows Outlook: Broad- determine the best fulfillment strategy for between your e-commerce, marketplace, based growth each order based on specific variables. accounting and marketing systems. UNITED STATES MANUFACTURING is poised for steady growth through 2016, according to the MAPI Foun- Efficiently manage multi-channel distribution and dation’s U.S. Industrial Outlook, a adapt quickly to fluctuating demand all on one platform. quarterly report that analyzes 27 Deposco is an order management and fulfillment software company. Our major industries. Bright Suite of applications empowers retailers, distributors, 3PLs and brand companies to Manufacturing industrial produc- optimally allocate, source and fulfill customer orders across multiple channels. tion increased at a 4% annual rate Learn more at www.deposco.com in the fi rst half of 2014 (and 5% in the three months ending July 2014) while infl ation-adjusted GDP grew at a 0.9% rate. The MAPI Foundation forecasts manufacturing production growth of mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 4 11 Introducing...

by Ridg-U-Rak He said the rebound in big-ticket consumer spending is supported by employment gains, households’ low debt burdens and rising consumer wealth. Meckstroth sees several growth themes creating an in- centive for business investment, including energy infrastructure, residential and nonresidential construction, transportation equipment, and medical supplies and equipment. The report offers economic forecasts for 23 of the 27 industries. MAPI anticipates that 19 will show gains in 2014, three will remain ﬂ at, and only one—paper production— will decline. Growth leaders include construction machinery with 11% annual growth and housing starts with 10%. The outlook brightens further in 2015, with growth likely in all 23 industries, led by housing starts at 29% and aerospace products and parts at 10%.

SUSTAINABILITY Energy efficiency investment to increase in 2015 Available in 12-inch heights, RAM Guard THREE QUARTERS OF DECISION-MAKERS at U.S. snaps onto rolled or companies have invested in energy effi ciency programs in structural steel columns 3-inches wide and up the past 12 months, and 56% project their investment in to 3-inches deep. energy effi ciency next year will be greater than last year. These are among the fi ndings of a survey by Redshift Research fi elded in August 2014 and commissioned by Schneider Electric. Results refl ect the perspectives of 301 RAM GUARD™ respondents at companies with at least $50 million in rev- Column Protector enue with a decision-making role in facility management, operations management, technology management, sup- Molded of energy absorbing rubber with a “U-shaped” steel insert and force distributing ply chain management or energy/effi ciency management. rubber voids, RAM Guard™ absorbs significantly In total, respondents reported a 12% increase in more energy during impact than most column energy effi ciency investments. “Increased investment protection devices offered today. suggests business leaders are seeing a return,” said • Protects rack structures from frontal, Laurent Vernerey, president and CEO of North America angled and side impacts operations for Schneider Electric. “In fact, more than half • Significantly lowers impact damage to pallet (51%) of respondents said they realize at least a 25% ROI rack columns on effi ciency initiatives. This type of return will drive more • Requires no hardware or straps investment in effi ciency applied across the enterprise and • Significantly outperforms most plastic guards beyond energy consumption.” The survey suggests Mol ded of Energy a potential driver of Absorbing Rubber investment is the ability U-Shaped Steel Insert to measure results, a See it online! capability rooted in the TM convergence of information technology and

Patent Pending operational technology. When asked about the TheRAMGuard.com biggest trends impacting business today, Survey respondents reported www.TheRAMGuard.com more than half (56%) of a 12% increase in energy 814.347.1174 respondents cited this efficiency investments. mmh.com FOOD GRADE PLATFORMS trend, with 61% saying that energy effi ciency was its biggest benefi t. Byproducts of increased effi ciency, including MADE cost reductions (48%) and optimized business processes (43%), were also reported as benefi ts. However, respondents also acknowledged that this trend comes with its own set of challenges, including EASY more complex technology management (55%), security (54%) and confl ict between IT and operations staff (47%).

TRADESHOWS Modex to return to Atlanta in April 2016 MHI ANNOUNCED THAT MODEX 2016 will be held April 4 to 7, 2016 at the Georgia World Congress Center in Atlanta, Ga. Modex 2016 will showcase equipment and systems VISIT US AT PACK EXPO solutions as well as learning opportunities that span the BOOTH #7752 entire supply chain, from materials handling to logistics across manufacturing, assembly and distribution. More than 700 exhibitors will cover the 250,000-square-foot show fl oor and the expo will feature keynotes, show fl oor FOOD GRADE PLATFORM APPLICATIONS seminars and co-located events. WASH DOWN AREAS The Modex 2016 Exhibit Space Draw will be held Dec. MEETS OPERATOR STATIONS GOOD 12, 2014 in Atlanta. This will be the fi rst opportunity for MANUFACTURINGCONVEYOR SUPPORT AND ACCESS PRACTICES

P companies to secure exhibit space for this event. R EQUIPMENTS SUPPORT AND ACCESS O M C R E O SS TF & P LA Prior to the Space Draw, MHI hold its ShowPro Live ACKAGING P Exhibitor Workshop for ProMat 2015. The workshop, held in Atlanta’s Georgia World Congress Center, will be followed by an evening of dining, networking and entertainment as MHI opens the doors for an exclusive Space Draw Kickoff Cubic Designs offers an easy and event at the new NCAA College Football Hall of Fame. cost effective solution for your plant needs with pre-engineered and BOOKS pre-fabricated mezzanine and platform systems. Hamilton Caster president co-writes • Elevate equipment book to bring jobs back to U.S. • Professionally Engineered TO EMPOWER COMPANIES TO BRING operations back • Closed shapes and clean connection design to the United States, Dave Lippert, president of Hamilton • Accommodate varying degrees of Clean Caster, and industry veteran Tim Hutzel spent the last Design requirements three years co-authoring a book that exposes the dan- • Quick, easy and clean installation with minimal gers and hidden costs of offshoring. disruption to operations The book tells the stories of companies that have sent jobs outside of the United States and the negative effects Food Grade Platforms don’t get any easier these actions had on the quality of their products and than this. Call 855.241.0258 for a quote. services, employees, supply chain providers, consumers and communities. It examines the motivation these companies had to offshore their jobs as well as the errors of omission they made by not understanding the true cost of offshoring. the perfect fit “As president of Hamilton Caster for 19 years, I understand © Cubic Designs the importance of manufacturing right here in America,” Lip- pert says. “It allows us to create local jobs, stimulate the country’s economy, hire a more technically advanced workforce, and, most importantly, build the best darn caster in the world.” 855.241.0258 www.cubicdesigns.com mmh.com LIFT TRUCK TIPS

Don’t let culture take a back seat to compliance and costs If training is seen as a one-time event, lift truck fleet owners can expect incidents to occur more than once.

By Josh Bond, Associate Editor ift truck operator training is an essential part of establishing and maintaining a culture of safety. Too often, however, train- Ling and recertification are viewed as simply checklist items to be completed for the sake of compliance. Rob Vetter, director of training at Ives Training Group, says he frequently finds himself in the room with salty veterans motivated only to complete the chore and get back to the real work. “They are smart enough to show me what I want to see, but after I leave, the supervisor might not know what’s going on or recognize the difference between optimal practices and shortcomings,” Vetter says. “From the top of a company down, they need to be diligent about enforcing and maintaining safety, every hour of every day.” Having lost a close friend to an industrial accident, Vetter says it’s easy for him to connect to safe practices on a personal level. In an environment where leadership views training from a purely regulatory perspective, or as a means to Vetter acknowledges that training requires an invest- prevent financial losses, it can be hard to establish the ment of time and money, on which customers like to same level of investment. see a return. Aside from minimizing the risk of injury, “Operators don’t care about compliance and costs,” decreases in equipment and product damage alone can he says. “And, even if a safety committee does, if con- be staggering, he says. For example, one fleet of 12 lift sistent support doesn’t come from the top down in an trucks costs its owner $120,000 per year to maintain. organization, an ideal safety culture will not happen.” “That seemed like a lot, but the accountant said it In day-to-day operations, the top risk is excessive was within normal bounds based on a comparison to speed, he says. Especially when carrying a load, speed previous years,” Vetter recalls. “The maintenance invoices makes it harder to control a lift truck, requiring faster included bent hydraulic rods and cracked wheel rims reaction times and creating greater risk. Often the issue and I thought, this is not maintenance, this is repair. This is compounded by another common mistake: failing to equipment is being abused.” keep a clear view out of the operator cabin. Addressing those costs can help a business retain its “It astounds me how many people will pick up a load earnings, impacting the bottom line while reducing the that blocks their vision and then drive forward,” he says. likelihood of injury and product damage. “You would never do it in your car, so why do it in a lift truck? I can’t understand why they think they have the right Josh Bond is Modern’s associate editor and can be reached of way. It’s not difficult to drive in reverse or get a spotter.” at [email protected]

14 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com Expect More From Your Reach Truck.

Only from Jungheinrich® Introducing the new ETR series of pantograph reach trucks – the latest innovation from Jungheinrich. • Fastest lift speeds in the industry • Smooth, quiet ride • Intuitive controls • ProTrac® drive axle for greater stability • Robust mast with lift heights up to 450 inches • 400+ dealer locations in North America Take a test drive: Put our German engineering to the test — and see firsthand how you can achieve more. www.jungheinrich-lift.com 1-877-543-6757

© 2014 Jungheinrich. All rights reserved. All registered trademarks are the property of their respective owners including Jungheinrich® and its logos. Some products may be shown with optional equipment. PACKAGING CORNER

Maintain consistency with case marking Universal print controller helps manufacturers and packagers obtain a level of accuracy that can be critical for meeting stringent track-and-trace or other regulations.

By Sara Pearson Specter, Editor at Large

arking products and cases with identification coding and other information during their manufacture or during packaging, Mwhile they’re in transit on a production line, can be a tremendous challenge. That’s due to the variety of printing technologies and systems in the marketplace. “Historically, communicating directly to different types of printing technologies used on the same line, throughout a facility, or even at different geographic locations, has been extremely complicated—if not impossible,” says Antonio Cortes, product manager at Matthews Marking Systems. “That’s because there has never been a universal print management system available that could interface with, and direct the operation of, multiple print heads.” formats needed to comply with local country messaging To address that challenge, Matthews Marking devel- requirements,” he adds. “And, it helps co-packers who oped the MPERIA universal controller platform. The system must accommodate the coding placement requests of their communicates seamlessly—through wireless or Ethernet customers, or risk chargebacks for non-compliance.” connections—with high-resolution piezoelectric inkjet, Without a centralized controller, information output by thermal inkjet and valve jet print heads from any manufac- each print head has to be manually entered or modified turer across multiple production lines in multiple locations, at its line-side controller. “If a production line has mul- Cortes explains. “MPERIA also connects with enterprise tiple print heads, that means an operator has to visit each resource planning (ERP) and warehouse management control panel and key in the changes,” he says. “Not only systems (WMS) to populate production information into does that process take a lot of time, there’s the potential templates maintained in a centralized database.” for mistakes, resulting in wasted productivity and scrap.” This capability allows operations that produce the Cortes says the controller can also be integrated with same product in multiple locations to maintain consisten- scanners and other materials handling production line cy in code appearance and placement. That’s important control systems. for companies concerned with consistent product brand- Matthews Marking will display the MPERIA ing and messaging. That level of accuracy is also critical product line at Pack Expo in Booth 2151. for meeting stringent track-and-trace regulations, such as those required of pharmaceutical and medical products, says Cortes. Sara Pearson Specter is an editor at large with Modern and “In addition, MPERIA easily manages hundreds of can be reached at [email protected].

16 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com

MODERN system report Taking out the touches at BRG Sports BRG Sports’ new DC was designed from the ground up as an omni-channel, omni-brand distribution and manufacturing facility. Most of all, the materials handling solution optimizes fulfillment and takes touches out of the process.

By Bob Trebilcock, Executive Editor

et’s face it: Distribution has never been ent distribution centers and four brands more complicated. The best retailers into one facility. Currently, BRG Sports and distributors want to fill orders across is managing 23,000 SKUs while shipping multiple channels, multiple brands and an estimated 10,000 pallets a month. Its a multitude of order profiles, all from customer base includes big box retailers Lone facility. Meeting those requirements with conventional materials handling processes often results in more touches that add waste, time and cost to the order fulfillment processes. Taking those touches out of the process was one of the guiding principles behind the design of BRG Sports’ new 813,000-square-foot manufacturing and distribution facility in Rantoul, Ill. The acronym stands for Bell, Riddell and Giro, three of the best-known names in sports helmets and accessories. Riddell, for example, is the leader in football hel- met technology. Last spring, BRG Sports expanded its portfolio with the acquisition of C-Preme, a manufacturer of action sports helmets for children, teens and adults. The facility, which went live in October 2013, is a complex environment. When the integration is complete, BRG Lewis Hornsby, vice president of global Sports will have consolidated eight differ- logistics and fulfillment.

18 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN system report the touches at

Photography by Peter Wynn Thompson/Getty Images

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 19 MODERN system report

that may receive full truckloads with up to 10,000 cartons and smaller specialty retailers and organizations, such as professional sports teams and school ath- letic departments, which may order a handful of mixed cartons. Some orders are palletized and others are floor loaded. While full pallet orders represent 70% of the volume, the number of e-commerce orders for parcel delivery is doubling every year. In addition to distribution, the facility includes a manufacturing operation that can produce 25,000 Bell helmets per week. To manage that complexity, BRG Sports worked with a systems integrator (Numina Group, numinagroup.com), to design and build a Greenfield facil- Workers assemble Bell helmets at the facility. In the future, helmets will be ity to minimize those touches that uses: produced and shipped according to real-time demand. • very narrow aisle storage to optimize space; tions; 2 miles of conveyor; and systems release of work and synchronizes activi- • hands-free, multi-modal data col- that can support 60 cartons per minute ties so the right cartons for an order lection tools to direct picking activities in mixed full-case order shipments and arrive at the right shipping area at the (voice and ring scanning); and 100 cartons per minute in the com- right time and with the least amount of • automated materials handling bined full case/split case modules. travel—and touches—by associates. equipment (conveyors, sortation, and The solution is tied together by a Building a Greenfield facility meant automated print-and-apply and packing warehouse control system (WCS) that that BRG Sports could design new pro- systems). enables parallel pick, pack and ship cesses from scratch. “We didn’t want to The facility features 44,000 pallet operations across brands, channels automate our existing processes,” says locations, expandable to 60,000 loca- and order profiles. The WCS times the Lewis Hornsby, vice president of global logistics and fulfillment. “Instead, we wanted to use automation to streamline our processes.” While there is still some manual handling, about 80% of the orders go through the automation. “Although we ship multiple brands in split and full cases, to the automation, an order is an order and a box is a box,” Hornsby says. While BRG Sports took a phased approach to integration, consolidating one DC at a time, Hornsby is already seeing a significant improvement in throughput. “We think it’ll take a year after we complete the last integration to see the full benefits, but we’re moving in the right direction,” he says.

Network design led the way A modern warehouse control system (WCS) and voice technology synchronizes Headquartered in Scotts Valley, Calif., pick and pack activities across multiple sales channels and order profiles. and with more than $825 million in

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revenue in 2012, BRG Sports is a leading designer, developer and marketer of sport equipment and accessories. Formerly known as Easton-Bell Sports, the corporate name was changed last summer following the sale of the Easton businesses—baseball/softball, ice hockey and cycling. Today, BRG Sports focuses on sports helmets, protective equipment and accessories that support the bicycle and football businesses. The project was initiated in August 2010, when Hornsby and his team began researching the feasibility of a new facility. At that time, each of the brands had its own unique supply chain. In all, there were seven distribution centers prior to the acquisition of Automated print-and-apply technology has replaced the manual labeling C-Preme. “We had duplicate processes, processes that were used in the old facilities. and we frequently had to prepare multiple shipments from different DCs and site selection. requirements and retain key employees to fill orders to a big box retailer who At the end of that process, BRG to help us transition the operations in a ordered from more than one brand,” Sports chose Rantoul, Ill., where the phased move,” Hornsby says. says Hornsby. “What our customers company has operated manufacturing really wanted was to place one order and distribution operations for more Bringing in automation and get one shipment from one facility.” than 30 years. “We were able to meet With a location set, the next step was Hornsby laid out three goals for the our transportation and customer service to design a facility where automation is new facility. No. 1 was customer service: The facility had to reach most of the United States in two to three days. No. 2 was to eliminate duplicate processes in multiple facilities to fill one order. Finally, the facility had to pay for itself. Since many big box retailers arrange their own transportation and pay their own freight, finding a location that met BRG Sports’ needs without adding to its customers’ supply chain costs was paramount. “We did a lot of analysis on the miles our customers traveled, the amount of lead time required from the time an order is placed until pick up and the costs associated with pick up at our old facilities,” Hornsby says. He adds that in addition to in-house analysis, his team also worked with a con- New merchandise is processed in the receiving area and then delivered to a staging sulting firm on network analysis area for putaway in the very narrow aisle storage area.

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used to streamline and optimize labor and increase lines per picker.” by conveyor to the third level of the split intensive, manual processes. The order fulfillment system does case module. In that way, full cases are In the existing facilities, lift trucks that by bringing together automated transported to the split case module and wireless bar code scanning were materials handling systems and hands- where they are automatically weighed the dominant technologies. Full cases free data capture technologies to and labeled for shipping, inducted into were picked to pallets and delivered enable parallel pick, pack and ship pro- the shipping sorter and diverted to the to staging areas. There, they were re- cesses; that means the system allows right shipping lane. In the new facil- palletized into mixed pallet orders the facility to simultaneously pick full ity, floor-loaded cartons are conveyed for individual retailers. Shipping and case, split case and e-commerce orders. directly into a trailer for fluid loading. retailer compliance labels were applied As Hornsby says: A box is just a box to Picking activities in both of these by hand. When trailers arrived, the pal- the automation. modules are directed by voice recogni- lets were broken down again and the There are four distinct picking areas. tion technology that selects the carton, cartons were floor loaded for delivery. 1. One is represented by two, three- and directs and confirms picking by Split case orders were picked to level split case pick modules with 3,024 either hands-free scanning with ring totes and delivered by lift trucks to the carton flow positions and 237 two-deep scanners or by voice. packing area where they were sepa- case pick pallet flow pick positions. In 3. Slow-moving items, some hot rated into LTL and parcel shipments. the split case area, picking is done on items and non-conveyables are picked Parcel orders traveled by conveyor to the first two levels. Pack stations and to carts from the reserve storage area a shipping station; however, they were automatic weighing and print-and- and are directed by voice. To cut down weighed and labeled by hand. apply technology is located on the third on walking, the carts are designed so an What’s more, associates spent a con- level. order selector can use the forklifts to siderable part of their day walking to 2. A second area is a three-level full transport the carts and reach both floor pick locations. With the growth of busi- case pick module with 1,131 carton and upper rack pick locations, rather ness, especially e-commerce orders, “we flow positions and 260 two-deep pal- than manually push the cart. Picking needed a leaner, faster process to meet let flow pick positions. This area repre- in these areas is also directed by voice. the continued parcel shipment growth,” sents more than half of the orders pro- Once all of the picks to a cart have been Hornsby says. “We wanted a solution cessed in the facility. In this module, completed, the items are inducted into that could give us two- to three-times picking takes place on all three levels; the automation system, and conveyed more efficiency, minimize wasted labor the full case pick module is connected to the third level of the split-case module for packing, weighing and labeling. 4. Finally, an exception processing area located on the third level manages incomplete orders or those requiring a quality check or value-added services, such as price ticketing. Regardless of where they are picked, once orders leave the packing and labeling area, they pass through a scan tunnel and enter a narrow belt shipping sorter located above the dock, which sorts them to the right shipping area for full trailer loads, LTL shipments or parcel shipments. Multi-modal voice and scanning technology has delivered significant quality improvements. “Our error rate is less The facility features full case and split case picking modules. Packing takes place on than one half of 1%,” says the third level of the split case module. Hornsby. “That’s not just mis-

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picks, but damage from shipping or a palletizing area at the same time. In all tion,” Hornsby says. Still, there have shipping label that can’t be read.” But instances, the double and triple han- been improvements in customer ser- the real benefit comes from the use of dling that was common in the old pro- vice, and he and his teams are seeing the warehouse control system to direct cesses has now been automated out of some of the synergies they expect to see activities. The logic in the WCS ana- the operation. when the process is complete. lyzes a batch of orders and determines Similarly, once integration of all the the correct start times to synchronize Lessons learned DCs is complete, BRG Sports will move processes in the different modules. When the facility went live in October into Phase 2. At that time, the company For instance, the WCS may initi- 2013, BRG Sports staggered the closing will integrate orders with manufacturing ate picks in the reserve storage area of facilities, integrating them one at a so that it can take product directly from first because those take longer to pro- time. The goal was to minimize the risk the assembly lines to the packing station cess. Similarly, the WCS can distin- of a glitch from trying to do too much and shipping dock in response to real- guish between full truckload and LTL at one time. At the same time, Hornsby time demand. “We’re not there yet,” says orders, and segregate split case orders believes that approach delayed BRG Hornsby, “but the design and automated that may require more time than full Sports’ ability to realize the full benefits conveyor is in place to do that.” case orders. The system then synchro- of automation. “We had a significant “We have some work to do, but that’s nizes the delivery times so that full number of people doing manual pro- part of the strategic plan for this facil- case and split case orders arrive at the cesses while we spoon-fed the automa- ity,” he adds. M

Synchronizing omni-channel BRG Sports fulfillment with WCS Rantoul, Ill. SIZE: 813,000 square feet BRG Sports’ new facility relies on a warehouse PRODUCTS: Sports helmets, bike helmets, collectible football helmets and accessories control system and voice-directed picking to THROUGHPUT: Approximately 10,000 pallets per month synchronize parallel pick and pack activities across SKUs: 23,000 pick modules. EMPLOYEES: 360 SHIFTS PER DAY/DAYS PER WEEK: 2 shifts RG Sports’ new 813,000-square- row aisle (VNA) reserve storage (3) per day; 5 to 6 days per week foot facility in Rantoul, Ill., uses or conventional aisle reserve storage Bvoice-directed picking and ware- (4). Palletized product is delivered to moving product is stored in an area des- house control software (WCS) to tie a staging area with room for four pal- ignated for those SKUs (5). together full case, split case and piece lets located at the end of each aisle. Picking: With a mix of big box picking under one roof. The facility also Containerized product is verified, pal- retailers, specialty retail and direct-to- has the capacity to manufacture and letized and delivered to staging (3, 4). customer orders, BRG fills orders for assemble four million bicycle helmets Product received from manufacturing full and mixed pallets, full and mixed a year. and assembly (2) is stretch-wrapped, cartons, and parcel shipments. Those Receiving: The receiving area (1) tagged and entered into the WMS and orders are filled from a full case pick receives domestic truckload deliveries then delivered to the staging area (3, 4). module (6); split case pick modules (7); and import containers on two shifts. Storage: Most pallets are stored in and reserve storage and fast-moving Additional product is received from the reserve storage areas (3, 4). Turret SKU area (3, 4, 5). To initiate pick- manufacturing and assembly opera- truck operators pick up pallets from the ing, the WCS first analyzes a batch of tions (2) co-located in the same build- staging area at the end of the aisle. After orders to determine which orders to ing. All deliveries are received against scanning a license plate bar code label, start first. The WCS also segregates open purchase orders in the ware- the operator is directed by the system to trailer load, LTL and parcel shipments. house management system (WMS). a put-away location. The operator scans Picking is directed by voice, while SKU Once the receipt has been verified and the storage location to confirm the put- and storage locations are confirmed by checked for quality, the WMS chooses away. The product is now available in a ring scanner and picks are confirmed a put-away location in the very nar- the WMS. In addition, some very fast by voice or a hands-free scan.

26 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN system report

• Full case picking: When an • Reserve picking: Some slower System suppliers associate logs onto the voice system moving SKUs are picked to specially in the full case pick area , the WCS built carts in the reserve storage areas SYSTEM DESIGN/INTEGRATION, WCS, (6) VOICE PICKING, & PRINT-AND-APPLY sends picking instructions to a mobile (3, 4). The carts, which hold 12 car- SOFTWARE & MOTION SCALES: computer and the associate is directed tons, are built on a pallet that can be Numina Group, numinagroup.com to the first pick. After the location and moved by a lift truck. The operator is NETWORK MODELING & SITE SELECTION: SKU are confirmed by scans, cases are directed by the voice system to a pick Competitive Insights, ci-advantage.com; Avison Young, avisonyoung.com picked to a conveyor. The picks are con- location. Once all of the items for the firmed by voice. Cases are then con- cartons have been picked, the opera- VOICE ENGINE: Topvox, top-vox.com veyed to the third floor of a split case tor inducts them onto the conveyor VOICE HARDWARE, RING SCANNER & MOBILE COMPUTING: Honeywell, module (7) where they are automati- system (8) for the split case module. If honeywell.com cally scanned and weighed, and ship- all of the items for a carton have been CONVEYOR, NARROW BELT & SHIPPING ping labels are automatically applied. picked, the carton will be conveyed SORTERS: TGW, tgw-group.com/us-en • Split case picking: In the split to the third floor for labeling. If more PRINT-AND-APPLY HARDWARE: Panther case area (7), a license plate bar code items need to be added, the carton will Industries, print-n-apply.com label is applied to a shipping carton be conveyed to the right pick zone or ERP & WMS: SAP, sap.com that is then inducted onto the conveyor. zones for the additional items and then FIXED BAR CODE SCANNING: Sick, sick.com The WCS routes the case through the conveyed to the third floor for packing PICK MODULE & RACKING: Unarco, split case module, stopping only in (7). Fast-moving SKUs (5) are handled unarcorack.com areas where a pick is required. When in a similar way. NARROW AISLE LIFT TRUCKS: Raymond, a case arrives in a pick zone, an associ- Packing: When a carton arrives raymondcorp.com ate scans the label on the carton and at one of the packing stations (7), the receives picking instructions by voice. packer adds any void fill, packing slips and weighed. If the weight of the The associate scans the location and and carton content slips required for order matches the estimated weight SKU labels to confirm the picking loca- the order. If an order has more than in the system, the carton is conveyed tion and then picks the right number of one carton, a content list is added to to the automatic print-and-apply sta- items to the container. When the picks each carton. In addition to a visual tion. After the shipping labels have are complete, the container is placed inspection by the packer, the process been applied, the carton is conveyed back on the conveyor and delivered is videotaped for security and quality to a scan tunnel and then sorted (9) to to the next pick location. Once all of assurance. Once the order is closed the right shipping lane for that order. the items for that container have been out, the carton is automatically taped In the shipping area, cartons may be picked, it is conveyed to the third floor fluid loaded into a trailer (10), pallet- of the module where the print-and- ized for full trailer load shipments apply system is located. Palletizing , staged for LTL shipments GraphicCaption (11) 11 or readied for parcel shipping 9 Shipping sorter (12). M Fluid trailer 10 Shipping loading Split case Full case 12 pick module pick module Manufacturing 2 7 6 Conventional aisle storage area Split case Assembly 4 8 2 VNA reserve induction storage area Fast moving 3 storage area 4 5

1 Receiving

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 27 MODERN reader survey How pallet trends stack up Modern’s annual reader survey gives insight on pooling, customer compliance, used wood pallets and other trends, though price still rules as the top driver.

By Roberto Michel, Editor at Large

no single factor con- short, pallet use is cost conscious, but it’s sistently influences sup- also about doing what works in the context ply chain decisions as of customer requirements, shifts in demand much as cost reduction. and destination, and the need to keep ship- This cost containment ments on track without being distracted by focus was confirmed by acquiring and replacing pallets. research released early Demand in the pallet market also tends this year by MHI and to reflect the economy, since it serves as a Deloitte in the 2014 yardstick of sorts for the volume of goods MHI Annual Industry being traded. The good news here for users Report in which 70% of and pallet providers alike is growth. Last respondents named “controlling costs” as a year, research firm Freedonia Group pegged top priority. Certainly pallets are no excep- the pallet market for 3.5% growth through tion to this imperative. 2017, but in its latest projections, now sees In Modern’s annual survey of pallet users, 5% annual growth through 2017. Similarly, purchase price remains the top driver of research from TechNavio predicts 4.6% usage with 60% of respondents saying price growth for the pallet market through 2018. was the most important factor in their deci- Projections for more pallets means sion to use a certain type of pallet. The nee- more shipments and more business, which dle may move on other influencing factors is good for the industry, but how do com- and pallet use trends, but pallet decisions panies involved with manufacturing, distri- are made with cost and value in mind. bution and fulfillment view pallet choices, At the same time, pallet decisions and and how are they using pallets? pallet use don’t play out with cost as the To answer this question and others, we only driving factor. Customer compliance surveyed subscribers of Modern as well as a trends, shifts in global commerce, and the sample of recipients of our e-newsletters. need to ensure pallets are available are driv- We received 239 qualified responses from ing change in the types of pallets used and those employed at a location that uses pal- an increase in the use of pallet pooling. In lets. Here’s what we learned.

28 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com Reader Survey Report/Webcast ANNUAL PALLET REPORT Wednesday, October 15 • 2:00 p.m. ET www.mmh.com/pallets2014

What types of pallets do you use? Purchasing decisions Respondents say a variety of factors are driving their choice Wood of a certain type of pallet, and once again, purchase price was 93% the most important one, cited by less than 60% of respon- 91% dents, up from 56% in 2013, though shy of the 63% of read- Plastic ers naming it in 2012. Cost per use was cited by 37% of 41% respondents, confirming once again that a good chunk of the 37% market is getting multiple trips out of their pallets. Wood composite Other leading factors include: 14% • strength (60%), 18% • durability (54%), Cardboard/corrugated • customer requirements (45%), 9% 8% • reusability (44%), and 2014 • availability (32%). Metal 2013 Among the purchase influence factors, some remained 10% 7% near the same response level as last year, though “strength” rose to nearly 60% from 53% in 2013’s survey, and durability Other rose by 4%, reusability by 4%, and there was a 2% rise in cus- 1% 3% tomer requirements as a deciding factor. Wood pallets are used by 93% of readers, up slightly from Source: Peerless Research Group (PRG) a 91% response in 2013. However, pallets manufactured from alternative materials also are fre- Are the wood pallets you quently used: purchase new or used? What has been your • plastic pallets (41%), experience obtaining • wood composite (14%), Used, or core pallets used wood pallets? • metal (10%), and • cardboard/corrugated (9%). 66% Quality is not as good, worse Some alternative materials saw a 29% slight rise in use since last year’s survey. 27% 60% For instance, the use of plastic pallets Fewer pallets are available/ rose from 37% in 2013 to nearly 41%, Used pallets are in short supply New pallets while the use of metal pallets was up 3%. 23% 27% These findings are consistent with esti- 56% mates in Freedonia’s most recent pallet More expensive report, which foresees fewer pallets being 25% Average increase 8% 58% 15% Average increase 10% discarded each year and growth in plastic pallets, even while wood pallets continue Other to dominate product sales in most areas. Pallet pool 6% 5% Among Modern’s readers, significant 18% numbers of respondents say they will use Have no experience nor do we anticipate any issues procuring more pallets made from alternative mate- 16% 2014 used pallets rials in the coming 12 months, though 41% 2013 in some cases, these numbers dipped 39% slightly from 2013 response levels. For instance, 30% say they used more plas- Source: Peerless Research Group (PRG) tic pallets in the last 12 months, down

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 29 MODERN reader survey

from 34% in last year’s survey; and 30% The number of respondents using the previous year. Domestic shipping by expect to increase their use of plastic pallets to ship globally was 54%, slightly pallet stood at 44% this year, up from pallets in the coming year, down slightly less than the 55% for shipping globally 42% last year. And, 2% say they ship from 33% in last year’s survey. Customer compliance as a reason During the next 12 months for planning to use plastic pallets saw a do you expect your usage 10% increase. This year, 58% of respon- of plastic pallets to . . . And, why do you expect dents cited “compliance and cleanli- your usage of plastic Increase ness/safety” as the top category for their pallets to increase? plastic pallet plans, up from 48% last 30% Compliance issues/ year. The number of respondents citing Cleanliness and safety reasons “customers ask for plastic” as a reason 58% 33% also increased, from 25% last year to 48% 39% this year. Decrease More sustainable than wood/Last longer Other reasons cited for plans to use 45% 45% more plastic pallets included: 5% • plastic pallets are more sustainable Durability than wood and last longer (45%); 42% 6% • plastic pallets are more durable 40% than wood (42%); and • customers have greater control Stay the same Customers are asking for plastic pallets 39% over pallets (10%). 14% increase in 65% 25% requests for plastic pallets Readers indicate their plans to use metal pallets are on a modest Greater control over our pallets upswing, with 4% of readers saying 62% 10% 18% they expect to start using metal pallets in the next 12 months. Of those Other respondents already using some 2014 13% metal pallets, 8% say they expect to 2013 18% increase metal pallet use. Those per- centages are nearly identical to the Source: Peerless Research Group (PRG) results from last year’s survey. In terms of pallet size, the What type of pallets 48 x 40-inch size is still the are you primarily using? on pallets solely to interna- most common, cited by 83% of tional customers. readers. This was a significant 57% The leading countries/ 2014 change from the 58% of readers 51% regions to which goods that reported using 48 x 40-inch 2013 are shipped continue to pallets last year, but in line with be those closest to us, but the 81% who report using the even more so this year, with standard-sized pallet two years 87% of readers shipping to ago. Less than 17% of readers 27% Canada, up from 80% the said they were using the 42 x 23% 22% previous year, followed by 20% 42-inch and 36 x 36-inch sizes, 82% shipping to Mexico/ respectively, while no readers South America/Caribbean, reported using the 24 x 20-inch up from 67% in 2013. The half pallet size. And, less than percentage of readers ship- 17% of readers said they were Block Stringer Both equally ping to Europe also rose using “other” sized pallets. Source: Peerless Research Group (PRG) slightly, with 52% of respon-

30 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com Reader Survey Report/Webcast ANNUAL PALLET REPORT Wednesday, October 15 • 2:00 p.m. ET www.mmh.com/pallets2014

dents shipping to Western Europe, up from 50% last year; and 41% shipping Over the past 12 months have any customers to Eastern Europe, up from 39% last required you to change your pallet usage? year. 85% 86% While less than half of respondents What changes (43%) say the number of pallets they are you making/ ship internationally has increased dur- did you make? ing the past two years, readers are more optimistic for the next two years, with 2014 Using more block pallets 54% saying they expect to ship more 2013 37% 33% pallet loads internationally. Most readers report that they do Using more stringer pallets some things differently when shipping 17% 25% pallets globally, with 21% reporting that they don’t do anything differently for Other* international and domestic deliveries. 46% 42% Some of the strategies include: • 51% treat their pallets; *Other: • Using half or vertical pallets • 15% use alternative materials other 15% 14% than wood that don’t require treatment; • New size requirements • More robust pallets and • 19% use wood pallets from their more weight per skid own pool (up from 12% the previous No Yes • We fabricate pallets and skids year); and • Heat treated • 3% use a pallet pool for international shipments. This is down slightly Source: Peerless Research Group (PRG) from last year, but consistent with the findings from 2012. may explain some of this increased Block & stringer coexistence usage. This year, 41% of readers say Since Modern’s pallet survey began Wooden pallet trends they have not experienced any issues in tracking trends regarding pallets with For all the interest in alternative pallet procuring used pallets, a slightly better a stringer design versus those with materials, this year’s survey saw wooden figure than last year’s 39%. Similarly, a block design, the issue seems to be pallet use increase slightly to 93%. This 23% say that fewer used pallets are whether block pallets, a design required year’s survey also indicates increased available, a lower figure than last year’s by Costco the last few years, would take use of used wooden pallets and fewer 27%. However, 29% of respondents bigger market share versus the more constraints in obtaining them, as well report that the quality of used pallets traditional stringer pallet design. While as more use of pooling strategies for has deteriorated, up from 27% last year; there are some mixed indicators in this wooden pallets. and 25% say they have become more year’s survey, with some findings show- The number of respondents using a expensive, up from 15% in 2013. ing slightly more stringer pallet use, and pallet pool for wood pallets increased Of those readers who have experi- others pointing to circumstances where slightly, from 17% last year to 18% this enced price increases, 56% have seen a more block pallets are being used, it’s year. This year’s respondents also report spike of 5% to 9%, and 22% of readers clear that both designs are here to stay, increased use of used wooden pallets have seen a spike of from 10% to 14%. often within the same organization. or cores (66%), up from 60% last year, In response to these issues, 53% of In fact, 23% of readers say that both while 56% say they purchase new pal- readers say they will buy more new pallets designs are being used in equal mea- lets, down from 58% in 2013. (down from 64% last year) and 17% say sure, which is steady with last year’s When asked to describe their usage they plan to create and manage their own 23% response for the same question. level for used wood pallets, 53% said it pools (up from 13% in 2013). Additionally, This year, 57% of readers say they are had increased this year, up significantly 9% say they plan to rent from a pallet pool shipping primarily on stringer pallets, from 42% in 2013. such as those from CHEP, PECO and up from 51% last year, while 20% are Greater availability of used pallets iGPS, up from 4% last year. shipping primarily on block pallets, a

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 31 MODERN reader survey Reader Survey Report/Webcast ANNUAL PALLET REPORT Wednesday, October 15 • 2:00 p.m. ET www.mmh.com/pallets2014

decrease from last year’s 27%. likely to be minimal. While In a slight survey change, last Does your company rent, plan to rent 8% of respondents say they year in this question we asked pallets or use a retrieval/recovery provider? are very likely to participate in if readers were shipping *Increase in use of rentals since 2013 a pallet or pallet management “solely” and we have revised program, up from 6% last 56% the question to read “primar- 2014 year, 8% say they are likely to 50% ily” this year. 2013 participate in either type of While these results might 43% program, which is down from appear to indicate a resur- last year’s 13%. The majority gence of stringer pallets at the of readers say they are either expense of block pallets, this not very likely (36%) or not at year’s survey also found that of 25% all likely (35%) to participate the 15% of respondents who 19% in a pallet or pallet manage- said customers have required a ment program. change in pallet usage (this fig- 7% When asked whose pallet ure was 14% a year ago), 37% rental or pallet management are using more block pallets, Yes, use a pallet Yes, use another type No system they participate in up from 33% last year, while rental company of pallet retrieval or would consider, the lead- 17% are using more stringer or recovery system ing answer at 62% was “self- pallets, down from 25% last managed.” Meanwhile, 26% year. And, 46% of respon- How likely are you to consider of respondents say they have dents were required to make a participating in a pallet retrieval/recovery already evaluated or consid- change or using “other” pallet system or in a third-party pallet rental ered creating or managing types or designs this year. system during the next year? their own pool. Changes are being requested When readers were asked 8% from a variety of points in the Highly likely how interested they would be 6% supply chain including manu- in using a pallet pooling ser- facturers (42%), retailers (29%) 8% vice managed by the pallet Likely and wholesalers (34%). The big- 13% industry as an alternative to gest change in the type of trad- established pools managed by 36% ing partner requesting a change Not very likely CHEP, PECO and iGPS, 8% in pallet use is on the wholesaler 38% say they are interested (nearly side, with an 8% increase in 7%) or highly interested 35% requested change from whole- Not at all likely (nearly 2%), a decrease from 33% salers. Change requests from last year’s 14%. A clear major- retailers decreased slightly, from Don't even know what a pallet 13% ity (70%) say they are not very retrieval/recovery system or 36% last year to 29% this year. third-party pallet rental system is 11% or not at all interested. When it comes to pallet use Deeper into pooling Source: Peerless Research Group (PRG) trends, organizations are under While responses to particular many of the same pressures questions asked annually in the pallet or recovery system in place. Last year, that influence other supply chain deci- survey often fluctuate slightly, when the this combined percentage was 44%, so sions. Factors such as customer compli- needle moves by more than 10% that’s the response climbed by about 13% in ance, reliability or the case of pallets— cause for thinking a trend is underway. the 2014 survey. strength and durability—rank highly, but Such is the case with pallet pooling. Put another way, the majority of price and cost control tend to rule the day. In fact, in this year’s survey, 57% of respondents are now indicating they Trends like pooling appear to be growing respondents say they either use a pallet are involved in some form of pooled in importance, but all these factors play rental company, such as CHEP, PECO pallet use. Will that trend continue? out under the backdrop of keeping cost or iGPS, or they have a pallet retrieval Looking forward, the changes seem manageable. M

32 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com Rice Lake’s CLS Cargo Lift Scale • Speeds up material handling • Eliminates reweigh charges from LTL carriers • Fits most Class II and Class III forklifts • Real-time data collection and Wi-Fi data transmission • Provides Legal-for-Trade weights

The 920i control panel clearly displays the weight values, letting you zero, tare, print, record data, and much more.

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Sizing an opportunity End-users and solution providers prepare for dimensional pricing models to upend their packaging processes—or realize they have been preparing for it all along.

By Josh Bond, Associate Editor

hen FedEx announced that, effective Jan. and UPS’s sigh of relief signaled that both 1, 2015, it would begin charging based on companies’ networks had been under a lot the dimensions of a parcel instead of just its of strain. But, they’re not the only ones. weight, the industry’s response was mixed. The ascent of e-commerce has dramati- Some scrambled to prevent imminent cost cally increased the number of single-line, Wspikes. Some asked, “dimensional what?” single-piece orders and the complexity of And others stifled an “I told fulfilling those orders. For a time, pack- you so.” aging was near the bottom of the list of Most telling is the concerns, since a steady supply of boxes, response of UPS, the Coke void fill and labor could at least get items to FedEx’s Pepsi, which out the door. The industry now has a bet- followed suit very quickly ter sense of the cost of labor and materials instead of taking the oppor- with that approach, both of which pale in tunity to differentiate itself comparison to a consumer’s response upon with its own next-gen pric- receiving a thumb drive in a shoe box. ing model. The staring Paying a carrier to ship all that air is the match had finally ended, icing on the cake.

Poly bags virtually eliminate wasted space, but challenge conventional materials handling systems.

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Creating cartons on demand can reduce costs for packaging and shipping, but are dependent on per-item dimensional data.

But controlling costs and keep- all systems work together,” says Randy research by ShipMatrix, which found ing customers happy is not as simple Neilson, director of sales and market- that 32% of all ground packages could as just using smaller boxes. The pres- ing for CubiScan. “Picking, packing, be affected by the coming change, a sure to condense the size of a shipping sorting, weighing and shipping are all majority of which weigh less than 5 container will push packaging closer part of the larger system. We can’t con- pounds. It’s true that companies who to the contours of the product inside, tinue to try to put out fires from place tend to ship large but lightweight boxes very few of which are neatly rectangu- to place any more. We need a more will be hit hard and those with dense lar. Poly bags could prove an efficient holistic system.” and heavy products might dodge costs alternative, but they have already begun or even benefit from the new rates. to wreak havoc in an industry that has Letting the air out In any case, those shipping any spent a century handling materials with Specifically, the new dimensional, unnecessary amount of air will soon be flat sides and straight edges. or “dim” charges, apply to packages penalized for it. According to Hanko Whatever 2015 brings, it will take smaller than 3 cubic feet, which were Kiessner, CEO of Packsize, as much more than any one solution to meet previously priced by weight. A Wall as 40% of the volume of a company’s the challenge. “With announcements Street Journal report recently cited outbound cases and cartons could be like dimensional pricing, it’s all the more pressing to make sure

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Finding the right shape In the process of switching over to this approach, the customer might use a mobile workstation in the aisles to cube and weigh all existing carton-sized inventory in as little as a few weeks. However, Neilson says it is more common for companies to rely on the pack station operator to assess the size of an item or order and select what they feel is the appropriate carton on the fly. Equipment that creates cartons on demand is therefore appealing to help reduce empty space, but such solutions are heavily dependent on the availability of per-item dimensional data. Some companies already have prod- Sliding shoe sorter technology, once considered incompatible with high uct dimensions in their warehouse volumes of poly bags, have adapted to handle them more reliably. management systems (WMS). There unnecessary. Eliminating that space can tomers have established ‘gates’ on the are often some issues with the accu- translate into a 66% transportation effi- inbound side to capture dimensional racy and completeness of that data, ciency gain for the shipping company, information as early as possible in the but most with a WMS are at least he says, which explains their interest in process. This way, the data can inform capable of taking a multiple-item order dim rates. Ironically, the empty space is storing, handling and shipping.” and running a calculation to direct the often there because of flat rates or standard box sizes the carriers themselves designed. “Especially small- and medium-sized businesses will potentially be squeezed by this move,” Kiessner says. “Margins are often very narrow in some industries, so to add a significant freight charge could as much as eat up the entire profit margin of some businesses.” Whether based on a carrier’s “if it fits, it ships” sizes or an analysis of SKU and order profiles, many companies have settled on an assortment of standard box sizes. Rick Morse, vice president of sales and marketing for Box On Demand, says those collections might range from a handful to as many as 50 box sizes. Standard box sizes aren’t meant just for customer satisfaction or reduced shipping costs. Neilson says they are also informed by storage and putaway efficiencies. “You want to manage space and get more out of your real estate,” Dimensional data can be captured as items enter a facility, on demand he says. “To minimize the impact of directly before pack out, or in a self-learning system that accumulates the dim rate announcement, some cus- per-item data.

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A variety of systems can create boxes on the fly to suit the shape of an item or order, cutting empty space by as much as 40%. packer to use, say, box size No. 8, or to direct an on-demand solution to create the ideal box. If there is no dimensional data, or if the customer doesn’t care to collect or maintain that data, they might instead measure and pack an order as it arrives at pack out. A conveyor- mounted scanner or a stationary scanner can capture each item and virtually assemble the order in a box. Kiessner says such systems can also include a self-learning database. As it captures the data, it stores and retrieves the data the next time that product is ordered. Ideally, per-item data should also go beyond basic dimensions to include information about how it should be packed. Because fragile items should go on top or be buffered by some protective packaging, simply matching the box to the size of the order is not good enough. In other words, not all empty space is waste. “Software is good at creating the optimum box, but you don’t want the operator to have to solve a puzzle when filling it,” Morse says. “Therefore, the system might also present the packer with a visual diagram of how to pack the box.”

mmh.com MODERN equipment report

Dimensional data on inbound side optimizes storage and efficiency UBD IS THE WHOLLY OWNED warehousing and distribu- they are then allocated to an appropriately sized empty tion division of Pearson Australia Group (PAG), Australia’s storage location. “This greatly assists us in optimizing stor- largest book publisher. After installing equipment to cap- age space as well as eliminating wasted conveyor utiliza- ture the dimensions and weight of inbound product, the tion or driver and forklift effort,” says Sebastian Parkes, company improved accuracy and efficiency. managing director for UBD. “In purely financial terms, it’s Using automated and paperless operations, the com- quite feasible that the dimensioning data and our other pany’s 312,000-square-foot facility picks, packs and dis- systems’ use of that information deliver savings in the patches in excess of 42 million books throughout Australia realm of 10% or more of our distribution cost.” and New Zealand each year. The site currently accommo- Parkes says the cartonization processes have greatly dates approximately 25 million books across 54,000 titles. benefited from the dimensional data. Each of the thou- The facility now uses six dimensioning units sands of daily orders that include a loose-pick component (CubiScan, cubiscan.com) in the receiving area to weigh has packaging materials of the appropriate size automati- and cube received books and related materials. The cally selected for them before they are filled. units capture an individual item’s measurements as well Parkes says this minimizes the consumption of packag- as its carton or case dimensions. ing material, reduces freight costs and ensures orders reach The information is then automatically fed to the site’s the customer in better condition. “Because they are tightly warehouse management system, which retains the infor- held together and require minimal or no void fill,” he says, mation in its master file and applies it when locating, “packages can be load bearing and not crush.” staging, replenishing, stock moving, selecting packag- Completed goods departing the picking process are ing, quality checking, order picking, determining the also check-weighed to ensure accuracy, invariably trapping appropriate freight carrier and reporting. 1% to 2% of cartons that would otherwise have gone on to Once goods are received and after they are measured, customers with picking errors.

But in many cases, it might not be ting to a single packing methodology is of 2013), says returns have turned ideal to process every order with a cus- gaining momentum.” into a part of the business model for tomized shipper. Morse says a growing e-commerce companies. “It’s part of number of customers are categorizing Assessing the impact the customer experience and, if any- orders and packaging them with different Even if a company can efficiently mea- thing, e-commerce retailers encourage processes. “Once an order is received, sure, pack and ship an item, it doesn’t returns,” he says. “It’s no longer a sign the system can calculate whether it will end there. E-commerce creates an of a shortcoming, or a process you’re save money by making a box on demand increased number of returns. Lance working to minimize or eliminate.” or using the standard packing process,” Wallin, vice president of e-commerce Depending on the type of business, he says. “The idea of designing multiple solutions for Sealed Air product care like apparel and shoes, Wallin says a parallel processes as opposed to commit- division (a position created at the end facility might need to prepare for 25% to 30% returns. “Unfortunately, too many returns are not in good enough shape to get back into inventory,” he says. “I think returns are a part of the business that can be improved the most.” A facility equipped for only a linear flow of product in and out must

Companies mentioned in this article BOX ON DEMAND, boxondemand.com CUBISCAN, cubiscan.com INTELLIGRATED, intelligrated.com PACKSIZE, packsize.com RETROTECH, retrotech.com Fully automated systems can create the perfect box size for an order, insert SEALED AIR, sealedair.com protective packaging or documents and print-and-apply labels.

38 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN equipment report Improve your therefore be prepared for return traffic. Austin Power, busi- WorkPFLOW. ness development manager for Retrotech’s distribution and warehouse division, says there are places where the loop can overlap, and a return system could check in inventory and Find out what a VRC reroute it to the appropriate area. “This requires inventory can do for you. management discipline to check it in, perform quality control, repack it if needed, or delete it from inventory,” Power » Vertical lifting solutions says. “You can utilize the software platform and routing capa- customized to your specific bilities to piggyback returns on your outbound tools.” application This capability has the potential to further complicate the » Less costly to install, pack-out line, which Power identifies as the final bottleneck operate and maintain than coming out of the four walls of a DC. Even something as elevators simple as physical geography, how a pack-out station is laid out for expansion and flexibility, can make or break a facility’s » Safe, efficient and throughput. convenient means of “One company had pack out tucked in a corner,” Power moving materials vertically recalls. “They had modern technology to pick it, route it and » Equipped with advanced sort it at a high speed, and they thought they could just throw safety features to protect people at packing to get it out the door. That strategy doesn’t the materials onboard and work anymore.” Between increased returns and the pressure to reduce pack- lift operators aging, the impact of the dim rates extends much further into a fulfillment engine than simply the pack station. Tim Kraus, product management supervisor for Intelligrated, says a carton Why go with with nice square edges is easy to track as it goes through sys- PFLOW? tem. A photo eye slightly above the elevation of a conveyor belt We pioneered the Vertical can reliably log the leading and trailing edges of a box. Reciprocating Conveyor “But if a football-shaped bag comes along, depending on the placement of the photo eye, you have a 3- or 4-inch dif- (VRC) product class over 35 ference,” Kraus says. “If a conveyor system is trying to set a years ago and, through gap and establish length for accurate positioning on a belt, superior design and tray or what have you, everything becomes exponentially service, remain the industry more complicated.” leader with 16,000 systems Poly bags are likely to be even more widely used going worldwide. We offer forward, Kraus suggests. The shift presents three main issues: Can a facility’s existing technology handle items, guaranteed code approval correctly assess their dimensions, and identify or scan in every state and the best them accurately? “Say you have a 10 x 10-inch bag. The warranty in the business. way you handle that depends entirely on what’s in the bag,” he says. “If it’s a stapler, you’re essentially handling a stapler—but with a bunch of extra catch points on it.” A rise in bags also challenges traditional methods of getting items from pack out to the shipping dock. In the past, it made sense to put boxes on a conveyor line where they can accumulate, but it might not be possible to preserve a singulated line with bags. It might make more sense to handle Try our Product Configurator at www.pflow.com in bulk, collecting items in a bin and manually or automatically separating them before a sorter. “As opposed to keeping everything singulated throughout the system, this leads to a rethinking of what the entire materials handling system looks like,” Kraus says, “and that’s good for the whole industry.” M Superior Design. Better Service. mmh.com MODERN information management Print-and-apply evolves to meet demands of E For many parcel-shipping operations, automating label printing and application is no longer productive enough to keep up with e-commerce growth. Here’s a look at the latest developments in print-and-apply technology.

By Sara Pearson Specter, Editor at Large

hanks to explosive growth in e-com- or thermal transfer (heats a wax- or merce—a $263 billion U.S. market in resin-coated ribbon to melt the coating 2013 that Forrester Research projects onto a label) technology to mark infor- to grow 57.4% by 2018 to $414 bil- mation on paper-based labels. lion—shippers can no longer afford to Once printed, the machine applies rely on manual parcel packing stations the label using a pneumatic or electric Tat the end of their fulfillment lines. cylinder to actuate a pad that presses it That’s because today, instead of ship- onto the package. Other machines use ping 12,000 items in 1,000 cartons, an air-blow system that releases a burst they’re sending 12,000 individual pack- of air to propel the label onto the car- ages with one item apiece. Volumes ton. Throughout the process, a device like those can easily overwhelm pack controls the speed of the roll of label station operators. stock fed into the machine, separates In response, companies are invest- the label from its backing, and rewinds ing in a variety of automated technolo- empty backing for later removal. gies to eliminate shipping bottlenecks. However, for many parcel-shipping Many high-volume operations have operations, automating label printing transitioned away from manual appli- and application is no longer produc- cation of printed labels to automated tive enough. The latest developments label printer applicators. These print- surrounding this equipment also and-apply machines imprint and affix accommodate the application and/or shipping labels to cartons or parcels. insertion of order-specific documents Printing most frequently employs and special offers; select (or modify) either direct thermal (burns an image right-sized packages to minimize ship- onto specially formulated label stock) ping costs; and offer enhanced device

40 O CTOBER 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN information management Print-and-apply evolves to meet E-COMMERCE

Today’s e-retailers analyze customer purchasing data then expect end- of-line, print-and-pack systems to output, apply or insert offers tailored to a package’s contents and its recipient.

connectivity for performance communication and diagnostics.

Confidential packing slips print with labels simultaneously For the convenience of both recipients and internal operations, more shippers seek labelers that apply a confidential packing slip with the label on the outside of the package. Doing so can save time and cost. For retail e-commerce fulfillment, 6 x 4-inch shipping labels are commonly used. New technologies permit the shipping information to be printed on the face of the label, and the packing slip information printed on its backing. Machines might use solely direct thermal or thermal transfer printing, or pair them. For example, the Twin Print solution from Fox IV Technologies uses label material with a liner that has been specially die cut so a portion remains when the outer perimeter is peeled off, explains company president and CEO Rick Fox. Both sides of a special label material are marked with direct thermal print heads, eliminating a thermal transfer ribbon and the information that

mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 4 41 MODERN information management

inserted into a parcel,” says Hanrahan. The system automatically prints, folds and tucks the sheet underneath a direct thermal- or thermal transfer- printed shipping label. “In the medical field, that document is critical for traceability, may need to be signed by authorized personnel, and is likely to be kept on file,” he adds. “The 4 x 6-inch pack slips don’t lend themselves well to storage.” Other equipment is able to print a single, long label (such as 4 x 11 inches) with packing information, fold it to hide the contents, and apply it to the package. There are also technologies that use high- speed laser printing to output multi-page, 8.5 x 11-inch documents, fold and insert them into a single clear plastic pouch (label side up) and present them for manual or automatic application to packages. The key to combination packing slip/label print-and-apply machines is a control The ultimate key to combina- system that guarantees the shipping address matches the order information. tion packing slip/label print-and-apply machines is a control system that guar- remains on it after the imprint is made, until needed. To keep documents con- antees the shipping address matches the he says. fidential, Numina Group developed order information—typically sourced “The exposed adhesive secures the a labeling automation system that from two different databases—correctly, combination label/packing slip to the prints information on a standard 8.5 x adds Fox. “For that reason, the machines package,” says Fox. “By repurposing the 11-inch sheet of paper using a high- are designed so that they will not print liner, we cut the waste by as much as speed laser printer. “This is the same the label and pack slip until both print 50%, as well as eliminating adhesive- technology used to print documents heads have the data,” he says. backed plastic pouches dedicated to packing slips.” For certain applications, however, one or more full, 8.5 x 11-inch packing sheets may be required that include additional information about the shipment or a return label. Dan Hanrahan, CEO of Numina Group says these applications are a particular interest from shippers of medical equipment. “For medical suppliers shipping orders directly to a surgery center or hos- pital, compliance documentation must be included, and that information is typically more than can fit on a 4 x 6-inch, label-sized pack slip,” he explains. Because of the sensitivity and ste- rility of these items, both shippers and receivers prefer to have all the compli- With parcel carriers UPS and FedEx announcing that shipping rates will be ance and shipment details on the out- assessed based on package weight and dimensions (DIM weight) in 2015, side of the package so it isn’t opened shippers are looking for cost-effective ways to minimize their package sizes.

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demand and inserted into the customer’s order,” he says. “As a result, they’ve experienced an immediate increase in revenues of 5%.” Other technologies are developing that can imprint a special, customized advertisement or message directly on the face of, or immedi- ately adjacent to, the shipping label, says Doug Jones, director of business development for Datalogic’s Systems Integration Group. “Adding a message on the shipping label is highly likely to catch the attention of a customer,” he says. “When you buy something online and receive The latest print-and-apply equipment has expanded communication and connectivity the package, the first thing you capabilities, allowing suppliers to monitor and troubleshoot issues over the Internet. do is pick it up, and the second thing you do is look to see who On-demand printing of cally to a customer and related to the shipped it. What’s even more notable customized, order-specific item they purchased, says Napier. is that these systems can print text and information “Using our document management graphics in full color, which sets the E-commerce retailers in particular are software and Autoslip system, the spe- message apart from a standard black becoming savvier about leveraging Big cial promotion is printed in-line, on- shipping imprint on white label.” Data for expanded marketing opportunities. This goes beyond including a copy of the upcoming season’s catalog or a special promotion coupon as an item picked and inserted into every outbound package. Today, retailers examine customer demographics and purchasing habits, then expect end-of-line print- and-pack systems to output, apply or insert unique offers tailored specifically to a package’s content and its recipient. “Most special offer direct mail cam- paigns fail by 90% because they’re not opened or read,” explains Tom Napier, senior account manager at PSI Engineering. “However, e-commerce purchasers commonly check the full contents of their order, including the packing slip.” For this reason, PSI’s customer Market America asked the company to engineer an automated packing slip Today’s end-of-line printers can imprint a message on the shipping label in full insertion system to automatically add a color, setting the message apart from standard black shipping information special promotion code tailored specifi- on a white label.

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 43 MODERN information management

Right-sizing to reduce dimension and weight data, is criti- shipping charges cal to ensuring that the shipping With parcel carriers UPS and FedEx package has minimal empty space recently announcing that shipping rates and void fill, says Numina Group’s will be assessed based on package weight Hanrahan. and dimensions (DIM weight) in 2015, “Based on order item cube data shippers are looking for cost-effective information, warehouse control ways to minimize their package sizes. software can manage the auto- While large shippers tend to use a mated print-and-apply labeling single carrier service because their high process and can also determine the volumes translate into the best rates, optimum package or carton selec- smaller volume shippers are likely using tion prior to the beginning order multiple carriers, says Datalogic’s Jones. picking,” he says. “The end-of-line packaging equip- “Depending on each order’s ment can be leveraged to make real-time SKU size requirements, the pack- decisions about which carrier offers the age type is selected and items can best rate for a given parcel,” he says. be picked directly to the package,” “Shippers can also pull the captured data says Hanrahan. “It’s then conveyed from these machines about their types of and routed to the required packag- parcels and volumes, and use that infor- ing lines, giving an operation the For the convenience of recipients and mation in negotiations for better rates.” ability to automatically direct each internal operations, more shippers seek Automating that process all the way specific package to different pack- labelers that apply a confidential packing back at the point of order release using aging lines based on document slip with the label on the outside of the the item or stock keeping unit’s (SKU) requirements, void fill type, carton package.

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44 O CTOBER 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN information management

heights or other processing needs.” est item, then vertically slices the cor- multiple plants around the world. They For small items, there’s been move- ners and scores the box sides to reduce want both service and support.” ment away from corrugated boxes to the box height, Napier explains. The Likewise, the machines can be padded envelopes or pouches, a switch- machine closes the box to the new fin- equipped to share information about over that may require labeling equip- ished height size and seals it. their operation within a given time ment modifications, such as different “This allows distribution centers to period. By analyzing the number of tamp pads or label materials. use a variety of boxes ranging in size cycles per day within a 24-hour period, For larger items that require corru- from 7 to 30 inches long in a variety of drops or spikes in productivity from gated boxes, there are solutions avail- widths and heights,” he says. “The sys- shift-to-shift might indicate a training able that create a custom-sized corru- tem can handle variable size cartons as need, says Fox. “If a machine is down gated shipping box designed to match fast as 10 to 15 cycles per minute.” for a label substrate changeover for only the cube of the order on demand. 5 minutes on first shift, but 30 minutes However, those systems still generate Troubleshooting, performance on third shift, then that’s something waste from the unused material, says analysis that needs to be addressed,” he says. M PSI Engineering’s Napier. The latest print-and-apply equipment “Because regular slotted containers has expanded communication and con- (RSC) boxes represent roughly 90% of nectivity capabilities, allowing suppliers all corrugated sold, there’s an economy to monitor and troubleshoot any issues Companies mentioned of scale that can be gained from reduc- over the Internet. in this article ing the headspace by of the box whose “This ability allows manufacturers to DATALOGIC, datalogic.com footprint best matches the dimensions offer support for their equipment no mat- FOX IV TECHNOLOGIES, foxiv.com of the products inside,” he says. ter where it’s located in the world,” says NUMINA GROUP, numinagroup.com PSI’s robotic Optimizer system uses Fox IV Technologies’ Fox. “It’s become PSI ENGINEERING, psiengineering.com sensors to detect the height of the tall- very appealing to large companies with

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mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 45 MODERN special report

The Top Automatic Data Capture Suppliers Whether struggling or flourishing, By Josh Bond, suppliers are Associate Editor working to differentiate their products and services to keep pace with rapid changes across the industry.

ast year, the global market for automatic included RFID data. However, data capture solutions (ADC) used in fac- VDC Research Group no longer tories, warehouses and logistics applications reports RFID market information. The analysis reached $5.752 billion in sales, according to and graphs in this article reflect only the mar- Massachusetts-based VDC Research Group. kets for rugged mobile device and bar code The ADC market includes handheld and sta- scanners and printers. Ltionary bar code scanning and imaging devices, The 2013 global sales figures represent bar code printers and ruggedized mobile com- a decrease of one tenth of a percent from puting solutions for the factory and warehouse. 2012’s comparable estimate of $5.76 bil- VDC’s figures do not include consumables asso- lion, which had fallen 3.4% from 2011. Yet ciated with automatic data collection, such as despite the contraction, the fact that 2013’s bar code labels. In previous years, this report has sales were flat suggests a low point on what

46 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN special report

could become a strong upward curve. increasingly fragmented competitive 2013. That figure was still enough to sur- VDC data projects the market will landscape, Gupta says suppliers are pass longtime second-place holder Zebra. post a compound annual growth rate facing significant price pressures. “For At the top of the list, Motorola (CAGR) of 4% through the next five every vertical they’re targeting,” she acquired last year’s ninth-place Psion, years before reaching $6.991 billion in says, “they’re running up against a lot which reported $111.9 million before the 2018. This includes a 4.6% CAGR for more vendors than in the past.” acquisition. This year, Motorola stands at bar code scanners and printers, and a $1.336 billion, a slight decrease from last 3.3% CAGR for rugged mobile devices. The Top 20 ADC suppliers year. Gupta says the timing of some big “The top theme this year across the Revenues for the Top 20 suppliers in orders in 2013 impacted the numbers, market is that 2013 was a rough year 2013 total $4.357 billion, down 7.2% even as some of the anticipated deals for a lot of vendors, especially the mar- from 2012. Ten of the companies finally closed toward the end of the year. ket leaders and especially for scanners reported revenue declines totaling a “On the handheld scanning side, and printers,” says Richa Gupta, senior 4% decrease. Not including the two Motorola and Honeywell are the leaders, analyst for AutoID and data capture for companies who are new to the list, but had a tough first half of 2013,” Gupta VDC Research. “North America is hurt- the remaining eight companies posted says. “They took a particularly hard hit in ing more than other regions for both gains of a combined 27%. terms of the North American contribu- handheld scanners and printers. But However, the list also reflects two tion. On the printer side, Zebra domi- from my conversations with vendors, key acquisitions. Last year’s third-place nates, although their stationary printer they are not too concerned because finisher Honeywell acquired last year’s sales were not as high as expected after business did pick up at the end of 2013.” fifth-placed Intermec. Their combined some big deals didn’t come through.” Amid increasing hardware commod- 2012 revenues totaled $920.7 million, Zebra finished third in 2013 with $545 itization in the handheld space and an but Honeywell has reported $765.8 for million in revenues, down 8%.

Top 20 ADC suppliers TOTAL 2013 TOTAL 2012 2013 2012 REVENUES (in REVENUES (in North American Bar code Handheld Stationary Mobile RANK RANK COMPANY millions) millions) Headquarters Web site printers scanners scanners RFID computers Motorola Solutions motorolasolutions. 1 1 (includes Psion) $1,336.3 $1,348.6 Schaumburg, Ill. com XXXX Honeywell (LXE, 2 3 Intermec) $765.8 $529.7 Morristown, N.J. honeywell.com XX X Zebra 3 2 Technologies $545 $592.1 Vernon Hills, Ill. zebra.com X X 4 4 Datalogic $453.1 $463.8 Eugene, Ore. datalogic.com XXXX 5 6 SATO $168 $155.7 Charlotte, N.C. satoamerica.com X X 6 7 Toshiba TEC $153 $147.9 Irvine, Calif. toshibatecusa.com X X 7 8 Denso $122.6 $138.2 Southfield, Mich. denso-adc.com X Casio Computer casio4business. 8 12 Co. Ltd $92.9 $86.2 Dover, N.J. com X X 9 11 SICK $92 $92.1 Minneapolis, Minn. sick.com XXX 10 13 Datamax-Oneil $78 $79 Orlando, Fla. datamaxcorp.com X 11 14 Bluebird Soft $75 $77.6 Palisades Park, N.J. mypidion.com X X 12 17 Cognex $66 $46.6 Natick, Mass. cognex.com XX X 13 10 Avery Dennison $64 $94.9 Pasadena, Calif. averydennison.com X X 14 15 NCR $60 $60.9 Duluth, Ga. ncr.com XXXX 15 16 Fujian Newland $59.8 $50.7 Fremont, Calif. newlandna.com XX 16 N/A TSC Printers $54 N/A Pomona, Calif. tscprinters.com X X 17 19 Opticon $49.6 $42.9 Renton, Wash. opticon.com X X 18 18 CipherLab $47.5 $44.4 Plano, Texas us.cipherlab.com XX X 19 20 M3 Mobile $38 $39.4 Iselin, N.J. m3mobile.net XXXX 20 N/A Code $36 N/A Draper, Utah codecorp.com XX

Source: VDC Research mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 47 MODERN special report

Bar code printer & scanner market and downs by region, Gupta says North Collecting the data The market is divided into four parts: Americans industrial printer sales con- handheld and stationary scanners, and tracted by 5%. Modern’s his is 13th-annual stationary and mobile bar code print- Gupta is watching the ongoing migra- look at the leading manufacturers of ADC hardware and ers. Stationary bar code printers were tion away from laser-based scanners Tsolutions. Because the industry up 3.5% overall, but were down for the toward camera-based technologies. Laser includes public and private com- Americas. Mobile printers and both used to be the highest revenue genera- panies, this is the sixth year in a handheld and stationary scanners were tor for the handheld segment, she says, row that VDC Research Group down about 1% each. but shipments dropped 25%. Camera, or compiled the data. To make our list, companies Gupta says Asia’s revenues derive from 2D-based scanners, are now in first place must sell in North America, bar code printers, sales of which were (47%), followed by lasers (31%) and CCD though the chart includes world- greater than both the Americas, Europe, (charge coupled device, 22%), which are wide revenues. Modern does not the Middle East and Africa. Overall, Asia based on linear reading and tend to be include resellers, systems inte- claimed the largest share of sales in 2013 a popular low-cost solution in emerging grators or other companies that do not manufacture ADC hard- for the first time since VDC began com- markets. The figures contrast sharply ware. Since our readers are pri- piling the report, Gupta says. when compared to the 2011 rankings, marily focused on supply chain Despite overall revenue contractions Gupta says, when lasers enjoyed 43% of solutions, we do not include in the stationary printer category, Gupta the market share, followed by cameras at companies whose primary focus says some Chinese suppliers actually 35% and CCD with the same 22%. is the retail checkout counter or non-industrial settings, like hos- saw significant growth, which con- In summarizing the AutoID market, pitals, libraries or resorts. Nor do tributed to the price competition and Gupta says customers expect modern we include companies that only pressures that the industry leaders are solutions to be part of an integrated manufacture consumables like feeling. The stationary printer category overall approach to track-and-trace bar code labels and RFID tags. can also be divided into the industrial initiatives within manufacturing and and desktop form factors. Noting ups logistics. “It’s something these com-

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48 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN special report

AutoID Market Analysis Estimated global shipments of rugged mobile computers, and bar code scanners and printers (in millions of dollars)

% Change % Change CAGR 2011 2012 2011-2012 2013 2012-2013 2018 2013-2018 Rugged mobile $3,025.5 $2,803.7 -7.33% $2,721.5 -2.93% $3,198.3 3.3% devices*

Bar code scanners $2,935.3 $2,956.7 0.73% $3,030 2.48% $3,792.4 4.6% and printers

TOTAL $5,960.8 $5,760.3 -3.36% $5,751.5 -0.15% $6,990.7 4.0%

*Includes forklift, handheld/mobile devices, and wearables Source: VDC Research panies cannot live without,” she says. been a specialty niche segment of the extent that the market has lost 10% in “In the last three or four years, data the broader mobile sector. According value over the last three years. The rugged capture solutions have become more to David Krebs, vice president of mobile market is forecast to reach $2.8 integrated within automation and VDC’s enterprise mobility and con- billion in revenues in 2014, down from a operational processes for any type of nected devices division, the rugged high of $3.2 billion in 2011. Krebs says organization, as opposed to an ad hoc market today is becoming even more rugged handheld computers and rugged solution. It’s not about a single solu- entrenched with successful suppli- notebooks have been especially hard hit tion anymore; it’s about how all of ers creating differentiation beyond the product categories. Much of the decline, them work together.” mobile hardware around value-added he says, can be traced to the growing deployment and support services. popularity of consumer smart phones and Trends in the rugged market Rugged mobile computer suppliers tablets among enterprise workers. The rugged mobile market has long have faced considerable headwinds to “However, equally important is the MODERN special report

transition many legacy rugged custom- With Microsoft’s next generation cations for rugged devices, Krebs suggests ers are undergoing as they decide on OS for enterprise devices (Windows adoption to date has fallen short of expec- their most optimal path forward,” Krebs Embedded Handheld 8.1) very much a tations and is only beginning to scale. says. “What this fundamentally points work in process, Krebs says many of these With consumer-grade OEMs look- to is the need for a pivot among existing efforts have been focused on Android. ing increasingly toward enterprise, the rugged vendors to not only better serve However, with continued enterprise trend of consumer device encroachment their existing customers, but to also cre- security concerns with Android and the could reach further into industries that ate greater value for prospects.” still-limited availability of Android appli- were previously heavily reliant on rugged devices. “The consequence is that the sector has entered a state of limbo with vendors only just satisfying the needs VISIT BOOTH of existing customers while being chal- E-8630 lenged to develop a value proposition that grabs attention of prospects,” Krebs says. “With slowing shipments and end users extending the lifecycle of deployed devices, the installed base of rugged handheld computers has stalled around 15 million units. At the same time, enterprise shipments of smart phones and tablets continued to scale with an estimated 45 million currently installed supporting line of business applications.” Krebs points to omni-channel fulfillment and automation as key trends impacting the market. VDC’s research shows that nearly all warehousing systems are facing moderate to strong pressure to support more individual piece picking. AutoID’s ability to target accuracy in these applications is increasingly CONVERT TO A appealing. Of respondents to recent VDC research, 92% stated customer DIFFERENT WAY demands for faster fulfillment and the OF THINKING. associated costs of errors exerted strong pressure on their operations. With Wildeck space effi ciency solutions, “Managed mobile services reduce the your printing, converting, or packaging operation will be ready to soar. impact and cost of downtime to achieve faster fulfillment of customer orders,” Look around your facility – can you see opportunities to streamline material handling and workfl ow? Wildeck can. Krebs says. “Ensuring that mobile solu- Our printing, converting and packaging specialists will tions can easily adapt to support vari- work with you to optimize every cubic inch of your ous workflows—from crossdocking to space and increase your capacity, effi ciency, safety, and profi tability. Wildeck® work platforms, vertical lifts, and picking and putway—is an increasingly guarding products will get the job done. It’s a level of common requirement among mobile quality and craftsmanship you won’t fi nd anywhere else. decision-makers. Moreover, the ability Call 800-325-6939 or visit WILDECK.COM today. to seamlessly integrate multiple solutions is vital. From voice technology to wearable mobile scanning solutions supporting high-speed sortation, today’s mobile warehouse solutions are becoming increasingly sophisticated. Decision- STORING LIFTING GUARDING makers increasingly aspire to leverage Get the most out Move inventory Protect your facility these solutions and flexibly adapt them of your space with ease © Wildeck, Inc. 2014 WC 1409 AD to specific workflows.” M

50 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MORE THAN A VISION

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By Josh Bond, Associate Editor Protective packaging solution supports facility consolidation

Throughput doubles in two years as the time to pack each order decreases.

tanley Black & Decker’s Belgian distribu- stations is equipped with a silo and a machine that tion center has gradually taken over all ship- fills 10 meters of air cushions per minute and auto- Sping capacities for customers in Benelux, France, matically tops off the silo. Workers remove the air Germany, Austria, Switzerland and Scandinavia. cushions and add them to the pre-packed products Since 2012, a new protective packaging system has in the shipping package. They can also lower the supported a doubling of throughput. system to replace rolls of air cushion stock. Workers The company’s extensive range of tools are complete a shipment in around 15 seconds. stored at the distribution center and dispatched The throughput of the workstations has to DIY stores and retailers, as well as logistics increased from an initial 9,000 shipments per day service providers and regional distribution cen- (10,800 at increased capacity utilization) to today’s ters. Since the summer of 2014, the facility has figure of around 16,200 shipments per day (as high processed an average of 18,000 shipments per as 19,800 at increased capacity utilization). day. About 90% of the shipments are prepared “We have always achieved our productivity targets with the new protective packaging air cushions for protective packaging,” says Ludo Lantmeeters, (Storopack, storopack.us). logistics and facilities sourcing manager at Stanley Installed in 2012, each of the four in-line work- Black & Decker. M

52 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN productivity solution

By Josh Bond, Associate Editor New facility achieves compact footprint with automatic palletizers

Five high-level palletizers integrated with case packer, stretch wrapper and pallet conveyor to storage.

arcel USA, a subsidiary of global baking leader The turnkey solution (Columbia Machine, Grupo Bimbo, is a growing manufacturer in the colmac.com) included five high-level palletiz- Bbakery and snack food markets. When designing a ers and integrated in-feed case conveyors, spiral new plant in Coppell, Texas, the company included elevators and ring stretch wrapper. Five inde- a fully integrated palletizing system. Five new high- pendent case packers (provided by another sup- level palletizers have helped the company automate plier) feed the multi-line conveyor systems with palletizing, stretch wrapping and transportation to sealed cases. These cases enter one of the five storage. spiral conveyors at a maximum of 10 cases per Operational since December 2013, the new minute per line. Each spiral conveyor discharges facility was designed to require minimal warehouse onto transport case conveyor to the palletizer space for the new end-of-line packaging equipment. dedicated to its line. The automated solution needed to have an extreme- Once the cases have been palletized and a full ly compact footprint, but also provide flexibility pallet load is created, the palletized load is dis- in handling the variety of products manufactured charged onto the full load conveyor system. This at the facility. Francisco Zamora, Barcel’s project system integrates all five palletizer discharge con- engineer, was tasked with overseeing the packaging veyors into one trunk line. Full loads are transferred automation project. from chain conveyor onto chain-driven live roller “Our operators often comment on how easy it (CDLR) conveyor. The CDLR conveyor transports is to operate the system,” Zamora says. “Since the the full loads from the palletizers to the rotary ring installation, we have received excellent perfor- stretch wrapper. Once the pallet load is wrapped, it mance from the system and the palletizers have is discharged onto CDLR for pick-up and delivery operated above our expectations.” to warehouse storage. M

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 53 MODERN productivity solution

By Josh Bond, Associate Editor Robotic palletizing system enables track and trace quality control

New system design greatly reduces time spent tracking nonconforming product.

orillard Tobacco, a 250-year-old company headquar- the risk of shutting this factory down.” tered in Greensboro, N.C., produces approximately The end-of-line operation presented a unique set L40 billion cigarettes each year. Its 1-million-square-foot of challenges. Most importantly, the pallets must be plant houses 36 packaging lines that produce 41 differ- composed exclusively of cases from the same pro- ent product types. In response to new industry regula- duction line to enable easier track-and-trace capa- tions in 2009, the company installed a robotic palletizer bility throughout the plant. The system must also to ensure visibility and control of product quality. accommodate eight different case sizes, each with The company had used a multi-line palletizing its own stacking pattern. system at the facility for more than 30 years, with all The solution they chose includes 18 robotic pallet- 36 production lines feeding two conventional high- izing cells (Intelligrated, intelligrated.com), each serv- speed palletizers. Although the legacy system met all ing two of the facility’s 36 production lines, a design requirements for throughput, reliability and safety, that includes significantly less conveyor than before. its design caused difficulty when tracing defects and The compact footprint of the robotic system enables damage back from pallets to production lines. a system design with a direct connection between the “If you had a problem on one packaging line but palletizing cell and each production line. had six others that were producing perfect product, “It’s a very simple way to palletize cases,” Marshall finding the defect required you to search through explains. “It makes traceability much easier.” all of the cases produced during that time period, The installation of each robotic palletizing regardless of packaging line,” says Randy Marshall, cell took place over a four-week schedule, which senior staff engineer for Lorillard. “If we installed required shutting down two of the production lines a new multi-line palletizing solution, it had to be for two weeks. After the first cell finished testing, completed in a very short amount of time. I couldn’t the phased rollout process continued until the final figure out how to do it, nor was I willing to accept cell 22 months later. M

54 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com MODERN productivity solution

By Josh Bond, Associate Editor Suite of upgraded storage solutions streamlines parts location

Full storage update includes flexible cabinets that adapt to changing inventory.

alifornia-based Quinn Company sells, rents and services a full line of new and used Caterpillar Cindustrial, agricultural and construction equipment. When updating its warehouse infrastructure, it sought to upgrade the existing storage units inside. An array of new racks, shelves and cabinets resulted in 70% space savings. The scope of the project included 204 cabinets (Vidmar, stanleyvidmar.com), pallet roller conveyors, mini pallet racks, 72 pallet racks, carton flow racking, 140 bin shelving units and 12 cantilever racks. “Our infrastructure update was no small task, especially when having to work around the initial units in the warehouse,” says Chris Lucas, Quinn parts manager. “Regardless of the obstacles, we needed to minimize warehouse downtime.” While managing the procurement of solutions from other vendors, the supplier installed all of the storage equipment, which was fully operational within 90 days. Two of the supplier’s customizable cabinets now hold the contents of five standard units of shelving. Interchangeable drawers support up to 400 pounds of material each, even when fully extended. As inventory shifts, so does the arrangement of drawer contents, optimized by using organizational accessories including foam inserts, plastic dividers, and partitions. Lucas says full visibility of drawer contents makes for easy access and reduced pick times. Ultimately, the new storage resulted in as much as 70% space savings, maximized organization, and increased operational efficiency. M

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 55 A SPECIAL SUPPLEMENT TO

Mobile supply chain: Significant progress, but a long way to go Our top technology analysts give us an in- depth look at the current penetration of wireless and mobility outside of the four walls and offer their outlook on the future of real- time, 24/7 supply chain monitoring.

BY BRIDGET McCREA, CONTRIBUTING EDITOR

s mobile devices and wireless functionality continue to pen- etrate our everyday lives, the same technologies are having considerable impact on the supply chain. Looking specifically at the area that stretches from the dock door to the end delivery point, for example, it’s clear to see that mobile and wireless technologies are helping shippers work Asmarter, better and faster in today’s competitive business environment. Driven by trends like omni-channel retailing, an increasing demand for real-time supply chain visibility, and the technological advancements themselves, the fully mobile supply chain is certainly coming into view. “We’re seeing substantial progress and significant investments being made in this area,” says David Krebs, president of enterprise mobility and connected devices at VDC Research. And while the

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concept of using mobility in the environment outside of the warehouse and distribution center isn’t new, Krebs says it’s becoming more accessible to a wider range of supply chain managers. “Everyone from large couriers like UPS to smaller, specialty logistics Over organizations have been investing in the next few mobile devices for proof of delivery, pages, we’ll round dispatch and payments for some time up the latest data and insights now,” he adds. “Now, we’re seeing a into the current state of wireless and lot more interest from a wide range of mobility in the supply chain, with companies that want to develop mas- an emphasis on what’s taking place sive networks that allow them to sense outside the four walls of the nation’s more activity at multiple nodes within DCs. Three three leading analysts in the supply chain.” this space share their take on the top

How much mobility do you really need? efore shippers distribute RFPs or cut be helpful, or would they actually be checks to cover the costs of mobile superfluous and create complications. Bsupply chain technology, Simon Ellis, “Clearly you need visibility over your practice director at IDC Manufacturing starting point, the warehouse, and the Insights, says they should take a step ending point, the delivery location, but back and figure out what they really need do you actually need to know what goes to be able to gain mobile-enabled, end- on between those two locations?” asks to-end visibility. Ellis. An ocean journey that takes 10 Ellis says shippers need to ask them- days, on average, can be planned around selves: Do you know when your ship- fairly easily—with or without minute-by- ments are leaving the warehouse? Do minute oversight from a mobile device. you know how they’re being shipped? (If “The point is, just because you can set you’re using UPS or FedEx, for example, up a real-time supply chain with 24/7 vis- then you have access to build-in track- ibility of every shipment, doesn’t mean ing through you provider.) Do you know you should,” says Ellis, who sees the 24/7 when the shipments actually arrive at concept being important for many ship- their destination? Are you alerted to any pers, but not for all. problems along the way? “It’s a matter of figuring out whether Assuming the answer to all of these you really need to know that a truck is questions is “yes,” Ellis says the next going 55 miles per hour down highway question to ask yourself is: Do you re- 15, or if you can function just fine know- ally need any more visibility than that? ing that it’s on track and one time. Then In other words, would more “scans” go from there,” he says.

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technology trends and explain just within striking distance, Krebs has Is it, for instance, enough to how close the industry is to mobile- picked up on an on-going debate over equip drivers with smart phones and enabled, real-time visibility—that what type of device, level of rugged- related tracking/routing applications, long sought-after Nirvana of supply ization, operating system and data or is it wiser to include ruggedized chain management. collection capabilities will best suit an devices whose software is tightly With the real-time supply chain operation’s needs. integrated with the home base? And, perhaps even more importantly: Do these key elements need to be integrated with each other? “These are all valid questions that everyone is trying to figure out right now,” says Krebs, who defines mobility as a logistics professional’s ability to collect or access data when and where you need it. Back-end analytics is another piece

Many employers are instituting more BYOD, “bring your own device” programs, that find drivers and other workers using their own phones and tablets to help connect the dots across the supply chain.

of the mobility puzzle, Krebs says, as logistics platforms, software and other components undergo significant mod- ernization and translate into richer solutions for shippers and their customers. “Real-time visibility isn’t just about knowing where an item is in your supply chain,” Krebs explains, “it’s also about getting critical environmental information—such as a temperature readings for items that are on a refrigerated truck—and better managing the chain of custody and avoiding any ‘black holes’ such as security vul- nerabilities.” Krebs admits that such supply chain oversight can be compared to a Big Brother mentality, but adds that in today’s business environment, knowing what’s being delivered and when— and in what condition—are all critical

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knowledge points. Using a combina- sionals using everything from rugge- phones, with their integrated camera tion of handheld devices and wireless dized handheld devices equipped with technology and increasingly powerful access, knowing exactly what goes on top-of-the-line data collection capa- platforms are influencing the expecta- while products are in transit becomes bilities to smart phone-like devices tions of what and how a mobile device that much easier. loaded with applications—and every- should operate,” he adds. In terms of the devices themselves, thing in between—to improve supply Krebs is seeing supply chain profes- chain visibility. “Even consumer smart Bring your own devices, please Getting mobile devices into the hands of a logistics operation’s on-the-road workforce is much easier than it was, say, 10 years ago. There’s a good chance that even a small company New Lynx® Autonomous Intelligent Vehicles working on a tight budget already has a team of workers who have purchased SELF-GUIDED DELIVERY one or more smart phones or tablets for personal use. 24/7 Knowing this, many employers are instituting more BYOD, “bring your own device” programs, that find drivers and other workers using their own phones and tablets to help connect the dots across the supply chain. “BYOD is certainly something that comes up in conversation, especially with some of the smaller- or mid-sized organizations that are interested in taking the approach with their delivery staffs,” says Krebs. “We’re seeing some experimentation to that effect, as it presents a potential option for some organizations.” Telematics are also gaining ground and presenting potential. Defined as the convergence of telecommunica- tions and information processing, Lynx autonomous intelligent vehicles (AIVs) provide a new level of efficiency and telematics have gotten more affordable cost savings when it comes to moving goods around large facilities. They’re the and are putting more real-time infor- first of their kind, able to self-navigate in even the most dynamic environments. mation into shippers’ hands across the supply chain. Clint Reiser, research analyst with ARC Advisory Group, has seen more vendors offering telematics • Rapid, reliable transport (220lb capacity) solutions that are more affordable and • No facility modifications needed not as fast as their full-blown cousins that communicate five times to 10 • Operates safely alongside people times a second. • Traceable movement of goods “The system may communicate • Move labor to higher value-add tasks once every couple of minutes, instead of at the high-frequency level,” says Reiser. “These [scaled down] telematics options are less expensive because they can be added as applications to [email protected] smart phones, which already have adept.com/products/mobile-robots built-in GPS.” As a core function, these solutions connect smart phones 800.292.3378 Your Intelligent Robotics Partner with on-board computers. And, while the cheaper versions may lack the

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The hardware and ing real-time supply chain manage- applications are just ment and logistics visibility,” says one cost component, Krebs, who expects a continued push Krebs says, with work- for this supply chain Nirvana over force training as well as the next 12 months. “It’s really quite creating the underlying an exciting time in terms of what infrastructure neces- we’re seeing happening in the mobile sary for integrating the space as it relates to logistics appli- system with current cations.” solutions also coming Simon Ellis, practice director at into play. And while IDC Manufacturing Insights, agrees, mobility is usually a saying that new innovations in the “Top 5” IT initiative for space are being driven by a combina- functionality required to track long- logistics operations, Krebs says that tion of user demands and supplier haul shipments, they can help add a the budgets dedicated toward the innovation. And while he sees the use new level of visibility for local trans- cause don’t always re ect that sup- of mobility in the supply chain as more portation networks. posed priority level. of an “evolution versus a revolution,” In terms of the integration chal- Ellis sees more and more companies Hurdling the remaining barriers lenge, Krebs points to the cloud as attempting to capture eld-based data In assessing the barriers that remain one way to make back-end, service- with the help of an automated device. before everyone has access to com- based platforms more available and “In such cases, smart phones, tab- plete, mobile-enabled visibility across collaborative across a wider swath of lets, and similar devices are increas- the supply chain, Krebs says that bud- mobile users. ingly the hardware of choice,” says getary issues can keep companies from “The cloud is helping to bring Ellis, who, like Krebs, points to the taking the leap. down some of the barriers to achiev- BYOD movement as another key point of progress for mobility in the supply chain. “The whole idea of BYOD is interesting and something that in the long run is going to accelerate adoption,” says Ellis. Also moving the adoption needle right now is a supply chain software community that is attempting to be proactive about integrating data collection and management capabilities into their solutions. Retailers that have honed their freight movement processes to the point of complete ef ciency, for exam- Cut the ple, are now trying to eke more savings through true, real-time, continuous visibility. According to Ellis, that’s where the suppliers come in. Trash Talk! “As omni-channel commerce becomes more and more prevalent, and as consumers intrude into the sup- Add a BloApCo Shredder above your baler ply chain in ways they didn’t ve years and stop complaining about your Trash Line. ago, expectations around visibility and BloApCo warehouse shredders greatly expand disposal capacity and: performance are not going to relax,” ▲ Eliminate jams and ensure your production area is always says Ellis, “they’re going to intensify.” clear of OCC That, he contends, will drive motiva- ▲ Increase bale density and lower your haul-away costs tions both on the part of the shippers ▲ Save energy and improve your environment with and the logistics software providers. quiet, low HP, low dust performance “At the end of the day, the mechanics PMS 2728 of achieving this goal will fall more to PMS 485 Ⅺ www.bloapco.com 800.959.0880 the latter,” he says.

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Collapsible containers inter-stack on top of 48 x 48-inch pallet-base systems Compatible with a variety of 48 x 45-inch pallet-base systems, the CF line of collapsible containers inter-stack with multiple units in other sizes to form a mixed, straight-wall pallet load. The units come in outside dimensions of 11.9 x 14.9 to 23.9 x 22.4 inches and in heights from 7.5 to 15.1 inches. Offered with or without attached lids, the containers feature ergonomic pocket handles, sidewall hinges and pivot pins for collapsing when empty, and sidewall security interlocks to prevent misalign- ment and maintain engagement in the event of a side impact. To form a structurally sound unit, end-wall catches on the base component maintain all box geometries under loading, prevent- ing failures. The containers may be specified with one of three bottom configurations: crosstac to accommodate inter-stacking of small and large containers; crosspad for lower weight and better surface contact in conveyance; and transtac smooth bottom for use with a flip-top lid. Schaefer Systems International, 859-294-5615, www.ssi-schaefer.us/packaging. SPIRAL CONVEYING. Hold 2,000 pounds with STRAIGHT UP. perimeter steel bracing Featuring proprietary internal construction combined with As the market leader in spiral perimeter steel bracing, the P-341 extra-heavy-duty bulk conveyors in the logistic industry container accommodates payloads up to 2,000 pounds. It is we think of solutions for handling ideal for safe storage and transport of large amounts of food cases & SKU’s. It’s what we do. and beverage At AmbaFlex it’s not just about ingredients, bulk building the right equipment, it’s about developing a special chemicals and solution for you. Here’s to spiral pharmaceuticals, conveying. metal waste chips, mineral and Spiral elevators for goods-to-man rock products, systems, picking modules and sorting systems. and other granular, free-flowing dry products. To promote complete discharge, the reusable unit includes dual side projections that help mechanized dumpers grip, rotate and empty the container. The unit is rotationally molded in a single piece from 100% waterproof polyethylene for strength, chemical resistance and high performance in inclement weather. Offering a bulk capacity of more than 33 cubic feet on a standard footprint, the container does not require a pallet, stacks when covered and nests when empty. Optional accessories include casters, fork safety tubes, BY AMBAFLEX | WWW.AMBAFLEX.COM lockable covers and custom colors. Meese Orbitron Dunne, 800-829-4535, www.shipshapecontainers.com. mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 4 67

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mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 4 69 PACK EXPO International November 2-5, 2014 Chicago, Illinois

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PRODUCT PREVIEW

Pack Expo International is scheduled to be held Nov. 2-5 at Chicago’s McCormick Place. PMMI, the owner and producer of the show, expects the events to draw a combined 2,000 exhibitors and 50,000 attendees to the more than 1.1 million net square feet of exhibits.

70 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com Schedule at a Glance Pack, wrap cases and trays at high speeds Sunday, November 2 Capable of reaching speeds of up to 45 cases/trays 8 am – 9 am per minute, the high-performance PC-4500 continuous Pack Expo/Pharma Expo Press Conference motion wraparound case/tray packer uses up to 20% less corrugated material than regular slotted cases for mate- 9 am – 5 pm Exhibit hall open rial savings. The rugged machine reduces labor, increases Education sessions throughout the show floor productivity, reduces packaging costs and integrates easily into new or existing packaging lines. It can be used with metal cans, paper cans, glass jars, glass bottles, Monday, November 3 plastic jars and plastic bottles. The system collates the 8 am – 1:30 pm products, loads the corrugated cases or trays, and closes Pharma Expo Conference Program them with hot-melt glue. Because it creates tight pack- 9 am – 5 pm ages, the packer minimizes the need for partitions to Exhibit hall open protect glass containers from damage (options permit Education sessions throughout the show floor automatic insertion of partitions and dividers if needed). 4:30 pm – 6:30 pm Easily adjustable to accommodate varying product sizes, “PACK gives BACK” reception and event speeds and product patterns, the machine runs both South Building Grand Ballroom (S-100) trays and wraparound cases. Arpac, 847-678-9034, Comedian Jay Leno Performs www.arpac.com. Booth 2948.

Tuesday, November 4 8 am – 1:30 pm Electric-powered lift and half pallet system Pharma Expo Conference Program for small-format direct store deliveries 9 am – 5 pm The DSD one-touch delivery system features an electric- Exhibit hall open powered lift and custom half pallet. The compact half pallet Education sessions throughout the show floor is ideal for small-format direct store deliveries and can be 4 pm – 6 pm dropped as end-cap displays or in storage for post-delivery Baking & Snack, Beverage and Confectionery merchandising. Individual store orders picked onto the pal- Industry Receptions let can be efficiently loaded into a more versatile transport 5:15 pm – 7:00 pm trailer. By picking product at the warehouse level, more Packaging Hall of Fame Reception SKUs can be efficiently handled and delivered from one truck. The device eliminates picking and loading of individ- Wednesday, November 5 ual orders from a side 8 am – 1:30 pm bay trailer, reducing Pharma Expo Conference Program worker injuries by 9 am – 3 pm eliminating awkward Exhibit hall open and repetitive Education sessions throughout the show floor truck-side case lifting. Rehrig Pacific, 800- 421-6244, www. rehrigpacific.com. Booth 6800.

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 71 Critical Industry News at Your Fingertips!

Modern Materials Logistics Management Supply Chain Management Critical Topic areas help you develop strategies and expand your knowledge. CRITICAL TOPICS Each topic provides you with the news, information, and resources you need — each day. • Automation

Modern Materials Logistics Management Supply Chain Management • Conveyors & Sorters • Inventory & Picking • Lo ading 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 PACK EXPO International PRODUCT PREVIEW November 2-5, 2014 Chicago, Illinois ® ADVANCING PROCESSING & PACKAGING

Simplified protective foam packaging Protect palletizer system conserves energy operators with The Instapak Simple protective integrated safety packaging system makes it easier features for low-volume producers to make foam-in-bag cushions as needed. The high-speed HL7200 Lightweight and easy to install, complete inline palletizing the device is ideal for operations system with robotic depal- producing fewer than 25 cushions letizer is equipped with a day. It operates in a condensed Category 3 safety features, fully integrated guarding and footprint without heated hoses, dual latching hoist pin. Capable of handling 75 to 120 pumps, external controls or con- cases per minute with zero-time changeovers from one tainers required, and it can be pattern or product type to another, the flexible system transported between multiple allows patterns to be added or modified through the packaging stations. The system human/machine interface with an adjustable program- runs on household electrical volt- mable laner. Standard components include dropped case age and requires a single button push to produce mate- detection, smart squeeze technology, multi-colored light stack to indicate machine status, advanced diagnostics, rials at rates of three bags per minute. Sealed Air, 864- and input/output status screens that quickly communi- 433-3800, www.sealedairprotects.com. Booth 2939. cate messages to the operator. Columbia Machine, 360- 694-1501, www.palletizing.com. Booth 6106. Reusable packaging solutions optimize supply chains Reusable packaging solutions that optimize supply chains include a selection of products engineered REPURPOSE specifically for beverage applications, including RECYCLE • REPROFIT SmartTrak asset tracking software; the impact-resistant NovaLock plastic pallet for use with plastic and metal beverage containers; and the PureMaxx top frame for secure load handing. Also highlighted is a new line of dunnage products—for use with the supplier’s handheld totes or bulk containers—customized to protect part quality while optimizing pack density. Industry-standard returnable totes • More usable with Snap-in Dunnage interior space than For high-speed automation operations, a new series standard totes of picking totes for fulfillment is offered. ORBIS, 800- • Hold more parts 890-7292, www.orbiscorporation.com. Booth 6700. • Requires less warehouse space FDA-friendly dry conveying option • Reduce line-side deliveries The System Plast N Evo conveyor chain features a • Less transportation proprietary, low-friction FDA-approved thermoplastic costs resin material for dry conveying in food packaging • Repurpose totes applications. The chain is a new version of the using new snap-in previously released NG Evo chain for dry conveying dunnage in the bottling industry and has been engineered to • Footprint: 12" x 15" and 15" x 24" provide a higher breaking load, greater elasticity, lower coefficient of friction and much greater abrasion 23093 Commerce Drive resistance. It can be operated without water-and-soap Farmington Hills, MI lubrication, eliminating slip hazards, pumps, leaks and 48335 failure of bearings, sensors and other components. Ph: 734.458.4194 Fx: 248.477.9000 Emerson Industrial Automation, 859-727-5263, www. www.polyflexpro.com emersonindustrial.com. Booth 6132. mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 73 PFX-033 3.375x4.625.indd 1 9/25/14 1:54 PM PACK EXPO International PRODUCT PREVIEW November 2-5, 2014 Chicago, Illinois ® ADVANCING PROCESSING & PACKAGING

Automated, semi- Robotic mixed-load automated secondary bottle order fulfillment packaging equipment solutions A complete line of secondary bottle Outfitted with end-of- packaging equipment is offered as arm tooling to handle either stand-alone machines or inte- multiple case sizes in a grated into a complete bottle pack- single pick, the Alvey ing system. Included are automatic robotic mixed-load pal- and semi-automatic carrier formers, letizing system delivers case and tray erectors, carrier insert- increased speed and ers and case/tray packers. Features product handling flex- include product collation and accu- ibility. The solution is ideal for direct-to-retail manu- mulation; modular packing heads for facturers building less-than-full pallet loads of mixed flexibility and quick changeovers; products and retail-ready display pallet loads. On dis- heavy-duty case lift and transfer; and play is a mixed-load robotic palletizing cell integrated a choice of hot melt glue or adhesive tape case sealing. with a stack-and-wrap solution for stable pallet loads. The products are ideal for the craft beer market, allowing An autonomous mobile robot transports the loads to small breweries to start with basic automation and then a vision-guided robotic mixed-load depalletizing sta- add additional pieces as production increases. Combi tion to complete the loop. The supplier’s full range of Packaging Systems, 800-521-9072, www.combi.com. robotic mixed-load order fulfillment solutions includes Booth 4721. configurable end-of-arm tooling, software, controls and vision technology. Solutions integrate with other automation components. Intelligrated, 866-936-7300, www.intelligrated.com. Booth 3536.

Motorized Carts ★ Manufactured in the USA Label printer, applicator prints in two colors Using two in-line ther- Imagine if transport of heavy equipment, materials and mal print engines, the supplies throughout your facility was not an issue. Tandem label printer/ What would that be worth to you? applicator can print If your employees are transporting Globally Harmonized heavy equipment, supplies or materials: System (GHS) labels that classify chemicals • over rough/carpeted surfaces in two colors: red and • over long distances black. The first print • up or down ramps station uses red thermal transfer ribbon to print the diamonds; the second prints the balance of the label AmericartUSA, LLC. information and pictograms with a black ribbon. Supplied Motorized Platform Carts with Zebra or Intermec print engines, a variety of label are the answer to reaching your stocks can be used. The machine applies the label after employee safety goals for 2014! printing with a vacuum belt applicator (for drums and pails), or tamp and tamp-blow. It can also be used for Call Toll-Free TODAY: 1-877-498-0076 anti-counterfeiting and traceability labeling—printing www.americartusa.com email: [email protected] overt, covert and forensic authentication marks including a holographic printed image, a specialized color or a scratch-off patch. Fox IV Technologies, 877-436-2434, www.foxiv.com. Booth 6221. Proudly Manufactured in the USA

74 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com PACK EXPO International PRODUCT PREVIEW November 2-5, 2014 Chicago, Illinois ® ADVANCING PROCESSING & PACKAGING

Help for retailers with omni-channel Mark cans, bottles and requirements more with continuous To address omni-channel requirements, the new inkjet printer Ship to Store protective packaging platform is The 9232 S inkjet printer cov- ideal for retailers with multiple channels. The sup- ers all beverage sector uses, plier’s dedicated team of packaging professionals including coding packages evaluates a retailer’s go-to-market strategy and such as cans, bottles, return- recommends solutions that will work across all of able glass bottles, bricks, the desired channels. Offerings include a full range flexible pouches, caps, packs of protective packaging materials and equipment— and shrink-wraps with a range including plastic-based inflatables, paper solutions, of high-contrast inks. Capable foam components, mailers and more. Pregis, 877- of printing quality codes on up to 120,000 products per 692-6163, www.pregis.com. Booth 8113. hour with excellent readability, the print head and cabi- net are entirely stainless steel and IP56 protected. The unit produces up to five lines of printing for best before Handle glass bottles dates, logos, alphanumeric text and 1D and 2D bar codes at font heights up to 32 dots. Markem Imaje, 866-263- more easily 4644, www.markem-imaje.us. Booth 2814. Ideal for craft breweries, small wineries and distilleries, the economical EZ Picker tool is engineered for quick and easy handling of glass bottles, both full and empty. The device may be specified in a variety of sizes, including a standard 12-bottle carrier with notched centers for six-pack loading, carriers for 7 Detect, to 40-ounce beer bottles, and carriers for wine and liquor inspect and trace bottles ranging from 750 milliliters to 1.75 liters in multi- millions of bottles ple arrangements. Weighing less than 4 pounds, the unit everyday worldwide, features robust stainless steel construction and smooth with eyes closed. gripping action for gentle product handling. The tool can be customized to pack 12-bottle rainbow packs and a variety of bottle sizes. Standard-Knapp, 860-342-1100, THE BEST EXPERT www.standard-knapp.com. Booth 5506. IN SENSORS, MACHINE VISION AND New PLC platform offered for robot, IDENTIFICATION packaging line equipment A single MLX200 Robot Gateway PLC enables control of www.datalogic.com multiple robots entirely through Rockwell Automation No matter how large your business is, ControlLogix and CompactLogix programmable automa- how many items and bottles go through tion controllers (PAC). The unit also provides easy-to- your filling and packaging process every day, Datalogic helps you detect, trace use programming add-on-instructions for the Rockwell and control every stage. Datalogic experts help you achieve more, driving RSLogix 5000 software, while a full-featured robot your choice and supporting the selection teaching and maintenance interface can be used with of the best Sensors & Safety, Machine Vision and ID solutions that bring vision Rockwell’s PanelView. Other applications (including those to every level of your business. requiring vision guidance and line tracking) can be con- See Datalogic’s latest solutions at trolled through the platform, including assembly, part booth 6104, North Hall transfer, picking, sorting, kitting, case packing, palletizing CONTACT US 1-800-418-8420 and de-palletizing. Yaskawa Motoman, 937-847-6200, R E T A I L MANUFACTURING T & L H E A L T H C A R E www.motoman.com. Booth 1733.

mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 4 75 MMH_85,725x117,475_vers02.indd 1 10/09/14 17.48 PACK EXPO International Productivity November 2-5, 2014 With Power Pusher® one Chicago, Illinois push. person can effortlessly and safely move rolling loads ® ADVANCING PROCESSING & PACKAGING from 500 to 50,000 lbs. PRODUCT PREVIEW

Palletize up to 50 fragile products per minute Ideal for handling fragile packages, the SPLX MKII high-level pallet- The original Power Pusher pays for itself with improved productivity, izer provides smooth reducing manpower and downtime, while protecting worker safety. Powerful, compact and rechargeable, Power Pusher replaces forklifts and tractors with a case palletizing at up to flexible and affordable solution for your biggest material handling challenges. 50 units per minute, depending on sizes, stacking pattern See it in action at powerpusher.com and configuration. Measuring 8 feet high, the compact Over a dozen Power Pusher attachments palletizer fits in areas with tight clearances and produces are available to meet your load handling application 6-foot-high pallet loads. It handles a variety of items, including kraft-wrapped bundles and bales and thin- Division of NuStar, Inc www.PowerPusher.com • 800-800-9274 walled containers in almost any stacking pattern. Easily Aircraft Towbar FifthMORSE_0113 Wheel Angle Plate Ad Push Pilot Pad Pintle H Hitchcopy.pdf 1 1/24/13 12:40 PM adjustable for changes in patterns and product size, the machine’s key components are nearly maintenance-free, and can be easily accessed through removable guards and doors. Also offered is the RPK robotic case packer, which reaches production rates up to 90 products per minute and can be scaled up to include multiple robots. vonGAL/Premier Tech Systems, 334-261-2700, www.premiertechsystems.com, www.vongal.com. Booth 5121. OVER 100 MODELS Hygienic drum motor certified by USDA NEW The Specialist in Drum Handling The supplier’s Asynchronous Drum Motor (models (315) 437-8475 113i, 138i, 165i and 217i) has gained approval from the U.S. Department of Agriculture (USDA) for compliance with the guidelines for sanitary design and fabrication of dairy processing equipment. This hygienic conveyor drive ensures that food manufacturers are in compliance with food safety and materials handling regulations. Engineered to be compact and easy to install, the unit can be cleaned and disinfected regularly using high-pressure water, steam and chemicals to eliminate harmful micro- organisms in a production environment. The motor is configured to drive all modular-belting applications and is IP66 rated. Interroll, 678-491-5858, www.interroll.us. Booth 8805. www.MorseDrum.com/mmh

76 O CTOBER 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com PROTECH® Precision Pallets

Ideal for the Pharmaceutical & Food Industries

Move small loads vertically with compact spiral conveyor With an outside diameter of 45 inches, the super compact NT 1000-120 Narrow Trak spiral conveyor handles small loads on 5-inch-wide slats. The slats pro- Always in stock and ready to ship! vide end-transfer of small cartons Tired of waiting for Structo-Cell pallets? PROTECH 4048 pallets save time and money to keep your operation moving. and packages or side-transfer of small bottles and containers— t Standard PROTECH is made with FDA-rated resin and color either in a single file or in mass. Easily custom configured t FM-approved fire-retardant PROTECH is decaBDE-free t Easy to clean, mold- and insect-resistant, hygienic from modular components to match unique application Ready to Ship t Four-way forklift and jack entry requirements, the conveyor accommodates an expansive in 24 hours! t Optional intermittent 1/2” perimeter lip range of vertical elevation changes. Features include or grommets a low friction chain slat arrangement for high capacity, high-speed operation with low energy consumption and minimal maintenance. Space saving, the unit is ideal for pharmaceutical, personal care and food applications. 866-713-9446 Ryson, 757-898-1530, www.ryson.com. Booth 4732. www.tmfcorporation.com

New series of conventional, robotic palletizers for end-of-line packaging Offered in conventional and robotic models, a line of palletizers builds loads at rates of more than six layers per minute in end-of-line food, beverage and consumer packaged goods applications. The machines, including the new 7 Series all-electric model (with either high- or low-level in-feed orientation), can be installed stand- alone or fully integrated with existing conveyor and other materials handling equipment. Features include the ability to handle products in cases, bags, bundles, trays or buckets; storage of up to 99 patterns; concur- rent wrapping; and sheet or pallet handling options. TopTier Palletizers, 503-353-7388, www.toptier.com. Booth 5941.

mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 77 RIDER MEZZ 1/4 PAGE 2013_MMH - Advance Lifts 12/11/12 10:56 AM Page 1

PACK EXPO International November 2-5, 2014 Chicago, Illinois ® ADVANCING PROCESSING & PACKAGING RIDER LIFTS FOR MEZZANINES & AUTOMATED MATERIAL LIFTS FOR MEZZANINES PRODUCT PREVIEW

Auto-pack more than 550 pharmaceutical orders per hour When paired with the supplier’s Max 12 or Max 20 Auto Bagger, the RxPack auto-packs 550 or more orders per hour, boosting productivity and reducing labor costs in new or exist- 4INCREASE MEZZANINE UTILITY ing operations. Compact, a single robotic pick and auto- 4SAFER LOADING & UNLOADING pack pharmacy automation system fits into 125 square 4FASTER LOADING & UNLOADING feet and includes dual redundant robots that print, fold and insert lit packs faster than five (or more) manual pack 4COST EFFECTIVE stations. The system is ideal for processing any mix of 1-800-843-3625 single and multi-bottle prescriptions. Features include camera-based bar code process validation, and five-posi- www.advancelifts.com tion envelope/pre-print insertion of marketing literature. Numina Group, 630-343-2600, www.numinagroup. com; Sharp Packaging Systems, 262-246-8815, COVER www.sharppackaging.com. Booth 3652. YOUR ASSETS! Robotic palletizer requires minimal space Featuring FANUC’s M-20ia/35 light payload handling robot with a cable-integrated arm, a new, small footprint robotic palletizer has debuted. Engineered to be simple, economical and portable, the robotic end-of-line palletizer accommodates fluctuating production demands. The unit’s long arm can pack pallets up to 70 inches, and pick, assemble and load multiple products without mechanical changeover. To boost productivity, the rigid arm and advanced servo technology increase acceleration speeds to shorten cycle time. Compact, it fits into Free Samples small hand palletizing spaces, and can be equipped with semi and fully automatic pal- with RackGuard Containment Netting let exchange, product label- • Reduce product damage ing, and bar code reading • Protect people from falling objects for product tracking in phar- • More economical than woven nets maceutical and food applica- See our video at /IndustrialNetting tions. Schneider Packaging Equipment, 315-676-3035, www.schneiderequip.com. Booth 2520.

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

78 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com PACK EXPO International PRODUCT PREVIEW November 2-5, 2014 Chicago, Illinois ® ADVANCING PROCESSING & PACKAGING

Divert packages 90 Horizontal flow wrappers degrees with roller for all automation levels top conveyor belt For manufacturers looking to Producing 90-degree trans- automate packaging processes, fers, the M5482 roller top the Pack Series of horizontal flow conveyor belt is ideal for wrappers ranges from entry-level models to fully auto- packaging and materials handling applications. Because mated technologies. Engineered for small- to mid-sized the rollers can be adjusted in 15-degree increments, any businesses, the Pack 101 offers a wide product size range, desired divert degree can be attained. The imperial belt quick and easy setup and changeovers. Another offering width creates a 1-inch distance from the edge to the cen- is the Pack 401, a higher speed wrapper with full automa- terline of the first roller, while lateral roller spacing is in tion, which can be enhanced with integrated, advanced 2-inch increments. Features include strong closed edges feeding technology, automatic film splicing, plus product for smooth package transfer; a patented smart-fit rod inspection and rejection technology. The Pack 401 comes retention system for easy rod removal/insertion; and lug either as stand-alone equipment or can be combined tooth sprockets that provide positive engagement for with other packaging machines, such as robotics, second- tracking and increased belt strength. Habasit, 800-458- ary packaging, product handling and multiple in-feeds. 6431, www.habasitamerica.com. Booth 4178. Additionally, the Pack series includes inverted wrappers for soft, difficult-to-handle products and multipack items, as well as long-dwell wrappers for hermetically sealed Reusable plastic pallets packages. Bosch Packaging Technology, 715-246-6511, www.boschpackaging.com. Booth 3514. A line of reusable plastic pallets is offered in three standard styles or can be custom engineered. Ideal for handling heavy loads, or for use in high-rack warehouses and automated processes, heavy-duty pallets can be Are your wooden pallet prices through the roof? equipped with steel reinforcement rods for increased load capacity, while an integrated anti-slip top deck ensures TRY LITCO’S maximum load safety. Completely closed pallets provide INTERNATIONAL SHIPPING PALLETS permanent protection against moisture in cleanroom •Mold and Pest Free– Clean and dry 48”×40” applications. Craemer Group, 844-268-9966, www. •Small Sizes–24”x40” and Half Euro as low as $3.95 •Large Sizes–Domestic and Euro as low as $6.75 AS LOW AS craemer.com/usa. Booth 6857. $6.75 EACH Packaging system creates food pouches Meets The Simionato Logic integrated packaging system is IPPC-ISPM 15 supported by an in-feed conveyor, radial combination “Heat Treated” weigher, vertical form-fill seal bagger and take-away Requirements elevator. The machine is ideal for a variety of food industries including snacks, fragile, frozen and sticky configurations. Features include a single, user-friendly human/ machine interface with interactive graphics that can control multiple units, and stainless steel or painted construction. The machine’s bagging systems can create a large range of bag shapes including D-bag, quad, block bottom, four-side seal and pillow. Visit Litco.com for “Buy it Now”, HayssenSandiacre, 864-486-4000, Bulk Buy RFQ and a Free Sample www.hayssensandiacre.com. 48 x 40 Booth 2106. Buy Now 855.296.2891 All Litco products are designed to Carry your products safely on through the most demanding supply chains mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 79 PACK EXPO International November 2-5, 2014 McCormick Place Chicago, Illinois Advertisement Aigner Label Holder Corp. Booth N-4616 AmbaFlex, Inc. Booth 4845 Adjustable Label Holders for Spiral Conveying. Straight up! High and Low Wire Shelves AmbaFlex is the partner for customized material Learn how Aigner Label Holders pay you handling systems based on spiral technology! in time saved, helping to make the most Our unique SpiralVeyor® is widely used for verti- effective management of time and space. cal transportation of single goods and packed Introducing “Angle-Vu™”, an adjustable products. With these systems, developed and label holder for high or low wire shelv- produced in The Netherlands, United States ing. No more climbing or bending to view and China, we supply reliable and cost effective labels! This flexible label holder has been engineered to snap onto major solutions. Our experience and quality is appreci- brands of wire shelving at three (3) different angles: 90° (flat), 60° and 30°. ated by many users all over the world. Clear plastic window protects the insertable label or barcode. New: SpiralVeyor® Portal, the best alternative for clamped or inclined elevations. Aigner Label Holder Corp. 218 MacArthur Ave New Windsor, NY 12553 AmbaFlex, Inc. 800-242-3919 877-800-1634 Fax: 845-562-2638 [email protected] [email protected] www.ambaflex.com www.aignerlabelholder.com

Buckhorn, Inc. Booth 6816 Columbia Machine, Inc. Booth N-6106

Visit Buckhorn at Pack Expo Booth #6816 where we Live demo of inline palletizing will be showcasing Buckhorn’s BN4845 extra-duty system at Booth #N-6106 bulk boxes, now available in extended heights. The Columbia Machine will demonstrate leading pal- BN4845 series has the proven design of sturdy, struc- letizing technologies at the upcoming Pack Expo tural foam panels and drop down doors you expect Show. A closed-loop inline palletizing system with from Buckhorn and combines that technology with an a robotic depalletizer will be fully operational in equally-strong, injection-molded, two-piece welded Booth N-6106. The system features Columbia’s base. The boxes securely stack with competitive bins HL7200 high level, inline palletizer and when upright or collapsed and are available with or Columbia/Okura’s model A1800 robotic palletizer/depalletizer. Columbia’s without drop-down doors. HL7200 is a high speed, inline palletizer that incorporates Columbia’s industry-leading safety package, ultimate flexibility and highest performance Buckhorn – You Perfect It. We’ll Protect It. to provide the operator a reliable palletizer that is easy to operate.

Buckhorn, Inc. Columbia Machine, Inc. US: 800-543-4454 360-694-1501 Canada: 800-461-7579 [email protected] www.buckhorninc.com www.palletizing.com/pack-expo

Cubic Designs, Inc. Booth 7752 Emerson Power Transmission Booth N-6132

Pre-Fabricated Food Grade Platforms System PlastTM New 2257 for Processing and Packaging Operations Side-Flexing Modular Belt Cubic Design’s Food Grade Platforms are System PlastTM new 2257 Series side- designed and manufactured to meet the clean flexing modular plastic belt allows for design requirements common to the food and both left and right turns, and S-curves, beverage industry. and handles a minimum radius as • Easy integration of single or multi-level platform small as 17.13 inches. At Pack Expo it • Equipped with many of our standard will be demonstrated in a high-speed mezzanine features and benefits application highlighting its low noise, low energy requirement and flexibity. • Installation without plant disruption 2257 is comprised of 3” and 6” modules, creating a multitude of width options. • Designed by on-staff Professional Engineers Materials can be selected from new proprietary low-friction NGTM Evolution or • AISC certified fabrication XPG acetal. With industry-leading practices and 100% professionally engineered systems, Cubic Designs custom mezzanines fit perfectly, last longer, and look better than even the closest alternative. Emerson Power Transmission Cubic Designs, Inc. 859-342-7900 262-789-1966 [email protected] [email protected] www.PowerTransmissionSolutions.com www.cubicdesigns.com

80 O c t O b e r 2 0 1 4 / MODERN MATERIALS HANDLING mmh.com PACK EXPO International November 2-5, 2014 McCormick Place Chicago, Illinois Advertisement Intelligrated Booth # 3536 Wildeck, Inc. Booth 8630

Robotic mixed-load order Wildeck FlexLoader VRC in fulfillment solutions booth No. 8630, PACK EXPO Intelligrated’s next generation of Alvey® robotic Wildeck, Inc. is showcasing its full comple- mixed-load order fulfillment solutions deliver ment of storing, lift and guarding products, greater product handling flexibility for manu- including its new FlexLoader™ Automated/ facturers and distributors to satisfy demand Integrated vertical reciprocating conveyor for partial pallet loads and retail-ready display (VRC) system, at PACK EXPO 2014, Nov. pallets. Specialized end-of-arm tooling capable 2-5, at McCormick Place in Chicago. The of handling multiple case sizes in a single new FlexLoader™ is a safer material lift for pick and the latest advancements in robotic automation duty applications. The fully inte- integration, software, controls and vision technology accommodate virtually any grated VRC system incorporates automated mixed-case requirement, allowing operators to replace manual processes with flush-mounted conveyors, with either a straddle or 4-post (VRC), the efficiency, accuracy and cost savings of automation. and Wildeck® Overhead Safety Gates at each level. Booth No. 8630.

Intelligrated Wildeck, Inc. 7901 Innovation Way 800-325-6939 Mason, Ohio 45040 [email protected] 866-936-7300 www.wildeck.com www.intelligrated.com

Packsize International Booth 10106 STATEMENT OF OWNERSHIP, MANAGEMENT AND CIRCULATION

1. Publication title: Modern Materials Handling. 2. Publication No. USPS 911-680. 3. Filing date: September 5, 2014. Rethink Packaging with Packsize’s 4. Issue frequency: Monthly. 5. No. of issues published annually: 12. 6. Annual subscription price: US $139, CANADA $219, On Demand Packaging® OTHER INT’L $269 7. Complete mailing address of known office of publication: Peerless Media, LLC , 111 Speen Street Ste ® 200, Framingham, MA 01701. 8. Complete mailing address of headquarters or general business office of publisher: Peerless Packsize On Demand Packaging includes an opti- Media LLC, a division of EH Publishing, 111 Speen Street Ste 200, Framingham, MA 01701. 9. Full names and complete mized mix of equipment, software, and services to address of the Publisher, Editor and Managing Editor: Publisher, Brian Ceraolo, Editor, Mike Levans, Managing Editor, Noel Bodenburg, Peerless Media, LLC , 111 Speen Street Ste 200, Framingham, MA 01701. 10. Owner: Peerless Media, LLC , give businesses with complex corrugated packaging Division of EH Publishing, 111 Speen Street Ste 200, Framingham, MA 01701. 11. Known bondholders, mortgagees and other security holders owning or holding 1 percent or more of total amount of bonds, mortgages or other securities: None. 12. requirements everything they need to make the Tax Status: Has not changed during preceding 12 months. 13. Publication title: Modern Materials Handling 14. Issue date for right size box for every product, on demand. Reduce circulation data: October 2014. dimensional charges, improve shipping, minimize 15. Extent and nature of circulation: Average No. Copies Actual No. Copies Each Issue During of Single Issue the use of air pillows, eliminate product damages, preceding 12 Months Nearest Filing Date decrease environmental impact, and increase A. Total no. copies (net press run) 59,998 60,366 B. Legitimate paid and/or requested distribution (by mail or outside the mail) customer satisfaction. Newly available, learn how 1. Outside County paid/requested mail subscriptions stated on PS Form 3541 55,422 55,558 PackNet™ optimizes order size, material requirements, and packaging 2. In-County paid/requested mail subscriptions stated on PS Form 3541 None None 3. Sales through dealers and carriers, street vendors, counter sales and throughput for a variety of distribution packaging environments. other paid or requested distribution outside USPS 27 21 4. Requested copies distributed by other mail classes through the USPS None None C. Total paid and/or requested circulation 55,449 55,579 D. Nonrequested distribution (by mail and outside the mail) Packsize International 1. Outside County nonrequested copies stated on PS Form 3541 4,130 3,992 801-944-4814 2. In-County nonrequested copies stated on PS Form 3541 None None 3. Nonrequested copies distributed through the USPS by other classes of mail None None [email protected] 4. Nonrequested copies distributed outside the mail 129 500 www.packsize.com E. Total nonrequested distribution (sum of 15D 1, 2, and 3) 4,259 4,492 F. Total distribution (sum of 15C and E) 59,708 60,071 G. Copies not distributed 290 295 H. Total (sum of 15F and G) 59,998 60,366 I. Percent paid and/or requested circulation (15C divided by F times 100) 92.87% 92.52% 16. Publication of Statement of Ownership: Publication required and will be printed in the October 2014 issue of this publication. 17. I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes ORBIS Corporation Booth E-6700 false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fi nes and imprisonment) and/or civil sanctions (including civil penalties).

Shift your Thinking with Michelle McKeon (signed), Senior Audience Marketing Manager, 9/05/14 Reusable Packaging from ORBIS Corporation Peerless Media Statement of Digital Circulation Plastic reusable packaging products 1. Publication Title: Modern Materials Handling

and services improve the flow of Average No. Digital Copies No. Copies of Single product all along the supply chain, to Each Issue During Issue Published reduce costs. ORBIS helps world-class Preceding 12 Months Nearest to Filing Date customers move their product faster, easier, safer and more cost-effectively with Printed Circulation as reported on PS Form 3526, Line 15A 59,998 60,366 Digital Circulation 21,391 21,447 plastic reusable containers, pallets and protective dunnage. ORBIS uses proven Total Circulation 81,389 81,813 expertise, industry-leading knowledge, innovation, superior products and supply Michelle McKeon (signed), Senior Audience Marketing Manager, 9/05/14 chain services (pooling, cleaning and logistics) to implement plastic reusable packaging systems. To learn more, contact ORBIS, a subsidiary of Menasha Corporation, at 888-307-2185 or visit www.orbiscorporation.com, www.linkedin. com/company/orbis-corporation, www.facebook.com/ORBISCorporation, or MMH2014.indd 1 9/15/14 9:37 AM www.youtube.com/orbiscorp. ORBIS Corporation 262-560-5000 [email protected] www.orbiscorporation.com mmh.com mmh.com MODERN MATERIALS HANDLING / O c t O b e r 2 0 1 4 81 MODERN 60 Seconds with...

Daniel Stanton TITLE: Vice president, education and professional development, MHI LOCATION: Charlotte, N.C.

EXPERIENCE: Supply chain are linked: Optimizing one management in the military and does not optimize the whole heavy industrial manufacturing system. You have to link the PRIMARY FOCUS: Help the three. MHI realizes that. When industry develop and implement I was brought in, they weren’t effective strategies to combat the bringing in a materials han- supply chain talent crisis. dling guy, they were bringing in a supply chain guy. And, I think our end customers Modern: Daniel, welcome to the realize that because they’re materials handling industry. Prior talking about supply chain to joining MHI, what were you problems. doing? Stanton: I like to say I have a broad Modern: As you look at your range of interests and a short atten- role, what kind of initiatives tion span. At one point, I was on strategy, and I discovered I had a will you be working on? passion for education. I spent two track to become an engineer. Then Stanton: I believe you’ll see us work- years working with colleges, sponsor- I joined the Navy, where I was intro- ing in a variety of areas. The industry ing student projects and recruiting duced to logistics. After the Navy, I needs supply chain managers – on college campuses so that CAT completed my engineering studies, people who understand business, Logistics was an employer of choice. went into private industry as a man- finance, contracts, marketing and That’s important because there really ager and earned an MBA. At that environmental sustainability. But, we aren’t enough people coming into point in my career, I discovered sup- also need people who understand the industry and all of the major ply chain management, and it was an material properties who can engi- companies are going after the same epiphany because it brought togeth- neer solutions that work. Next, there candidates. The only way that’s going er all of my interests. From there, I are jobs that don’t require four-year to improve is through a grassroots earned a master’s degree in supply degrees, but do require skills to movement to get more supply chain chain management at MIT and went maintain automated systems. For professionals into the field. That’s to work for Caterpillar, where I spent now, we’re calling those supply really what we’re doing at MHI. six years before joining MHI. chain technicians, and we want to define that as a career. Last, we have Modern: Modern: What I find interesting is How did you develop the blue and grey collar jobs associ- that you refer to this as a supply an interest in education and ated with working in DCs and trans- chain issue and not a materials professional development? portation departments that don’t handling issue. Stanton: Back in 2010, when I was at require a four-year degree, such Caterpillar, we put together a growth Stanton: I think that’s because as warehouse supervisor or traffic strategy as business began to pick materials handling, logistics, procure- expediter. The goal from the indus- up. The one thing that was going to ment and operations are all part of try standpoint is to define these prevent us from executing our busi- the supply chain; but as an industry, in a way that makes sense to our ness plan was that we didn’t have the we’ve done a terrible job of defining target candidates so they have an people. That coincided with the pub- just what the supply chain is and out- education path that allows them to lication of a study at MIT on the sup- lining the roles that the various play- get that job. We want to see what’s ply chain talent crisis. Given my con- ers play. I think we’re all beginning already being done now so we don’t nection to MIT, I was asked to help to realize that procurement, logistics, duplicate efforts and identify the human resources develop a recruiting operations and materials handling gaps that we can fill. M

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