PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

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® October 2010

Del Monte Foods:

Keith Arntson, vice president of distribution Best in operations, Del Monte Foods class Page 18

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MMH1010_Ads.indd 2 10/12/10 10:56 AM FAST FACT UP FRONT Breaking news you should know 1,913 The number of exhibiting companies at PACK EXPO International, Oct. 31 to Nov. 3 at McCormick Place in Chicago. New player in the carousel market A new provider, Sapient at the fall meeting of the Material tions to the U.S Postal Service. “We Automation, is entering the market Handling Industry of America (MHIA) launched the company in January,” for vertical and horizontal carousels in Palm Springs, Calif. The new com- Romaine said, “and we’ve spent and vertical lift modules (VLMs), pany is a subsidiary of MDCI, a pro- the last nine months ramping up.” according to Ed Romaine, chief vider of industrial automation solu- While the company is a new player, marketing officer for Sapient Romaine said Sapient has (www.getsapient.com). completed its first sale to Romaine announced the an industrial facility in the formation of the new company healthcare industry.

Dematic Group completes acquisition of HK Systems

Dematic Group, a leading than 20 years of executive global supplier of integrated experience, Baysore will lead materials handling solu- Dematic in the design, delivery tions and services, has and support of a more robust successfully completed the and diversified solution offering acquisition of HK Systems, a to the company’s customers. North American automated The newly combined company materials handling and soft- will be called Dematic, with its ware solutions provider. This North American headquarters strategic union was made Baysore in Grand Rapids, Mich. The final on Sept. 15, 2010. expanded manufacturing foot- CEMA report says John K. Baysore, CEO of Dematic print will allow Dematic to domestically North America (www.dematic.us), will be manufacture automated storage and booked orders were responsible for leading and developing retrieval machines and automated guided down in July the newly combined company in the vehicles in addition to conveyor, sortation IN ITS LATEST MONTHLY United States and Canada. With more and order fulfillment technology. REPORT, the Conveyor Equipment Manufacturers Association (CEMA, Pink lift truck supports breast cancer www.cemanet.org) reported its July awareness month 2010 Booked Orders Index was 131. The Index in July is down 36 points Lift truck distributor Barclay Brand Ferdon is supporting National Breast Cancer or 22% from June 2010’s index of Awareness Month by raising money and awareness. The distributor is displaying a pink 167. While down from June, the July painted Yale lift truck on its front lawn through the month of October, and they plan to 2010 index represents an increase of participate in the American Cancer Society’s “Making Strides Against Breast Cancer” 49% from the July 2009 Index of 88. walk in Woodbridge Center (Woodbridge, N.J.) on Oct. 17. What does this mean? Bob “We have pledged to match all of the donations made by our employees,” said Reinfried, CEMA’s executive vice Skip Russo, president and CEO of Barclay Brand Ferdon. “I am proud of the people president, said the conveyor industry who work for Barclay. Although it has been a had a very good month. While down tough economy for all of us, our employees from June, July 2010 was still better have really stepped up to make a difference than July 2009. It’s too early to tell in our community. We’ve also had a great if numbers will continue to climb. response from our vendors in support of this CEMA is forecasting an increase of effort.” Barclay Brand Ferdon is a distributor in 2% to 3% for the North American New Jersey and New York for all warehousing conveyor market in 2010. equipment and support services.

mmh.com Modern Materials Handling / O c t o b e r 2 0 1 0 3

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® PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

Keith Arntson and his team at Del Monte put a fl eet of laser-guided AGVs to work at their DC.

PHOTO: BLAINE FISHER/GETTY IMAGES COVER STORY SYSTEM REPORT 18 Best in class Del Monte Foods’ new Topeka DC brings laser-guided AGVs from manufacturing into distribution. The result is a best-in-class materials handling system that minimizes costs with room to expand in the future. 22 Automatic guided vehicles streamline operations 60 seconds with... Joan Barrett Kellogg, p. 50 Laser-guided AGVs move product from the manufacturing plant and through the distribution center. DEPARTMENTS & COLUMNS FEATURES 3/ Upfront PRODUCTIVITY SOLUTION 7/ This Month in Modern 25 Tilt toward safety and productivity 16/ Lift Truck Tips: Level the playing field Aluminum parts manufacturer uses ergonomic lifting equipment to 38/ Focus On: Palletizers prevent worker injury and increase production. 42/ Supplement: Warehouses/DCs 50/ 60 seconds with... SPECIAL REPORT 26 Top 20 automatic data NEWS capture suppliers 9/ MHIA: Growth is back The ADC market took a significant hit in 2009, but the recovery may 9/ HighJump to acquire TrueCommerce already be underway. 10/ Final thoughts on Supply Chain Reset INFORMATION MANAGEMENT 13/ Industrial real estate market making 30 In sync: Data capture and progress, challenges remain mobile computing 14/ Crown unveils 20 electric lift trucks to Using a combination of diverse technologies—often in one compact operate with fuel cells

package—gives users the edge in asset management and operational Modern Materials Handling ® (ISSN 0026-8038) is published monthly by efficiency. 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 EQUIPMENT REPORT copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 34 Carousels: Turning picking 01701 USA. Periodicals postage paid at Framingham, MA and additional mailing offi ces. POSTMASTER: Send address changes to: Modern into productivity Materials Handling, PO 1496 Framingham MA 01701-1496. Reproduction of this magazine in Not just for high-density storage anymore, today’s carousels are whole or part without written permis- delivering product to the person while increasing productivity, sion of the publisher is prohibited. All rights reserved. (C)2010 Peerless reducing labor, saving space and cutting energy costs. Media, LLC.

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BAF_MMH_DestratAd_091610.inddMMH1010_Ads.indd 6 1 10/12/109/17/10 10:53 8:51 AMAM THIS MONTH IN MODERN ® EDITORIALEDITORIAL OFFICES OFFICES 111111 Speen Speen Street, Street, Suite Suite 200 200 Framingham,Framingham, MA MA 01701-1496 01701-1496 MICHAEL LEVANS (800)(800) 375-8015 375-8015 GROUP EDITORIAL MichaelMichael Levans Levans DIRECTOR GGROUPROUP E EDITORIALDITORIAL D DIRECTORIRECTOR [email protected]@ehpub.com Bob Trebilcock Bob Trebilcock EXECUTIVE EDITOR [email protected] EDITOR [email protected] Noël P. Bodenburg ENoëlXECUTIVE P. BodenburgMANAGING EDITOR Innovation never goes [email protected] MANAGING EDITOR [email protected] Lorie King Rogers SSOCIATE DITOR out of style ALorie King E Rogers [email protected] EDITOR [email protected] Sara Pearson Specter EDITOR AT LARGE [email protected] Berman hile it may be at a much slower they think the apocalypse is right around GROUP NEWS EDITOR [email protected] Michel pace than predicted, growth is the corner,” observes Trebilcock. EDITOR AT LARGE [email protected] Pearson Specter actually taking place whether My fi rm belief that innovation never EDITOR AT LARGE W [email protected] Andel you’re feeling it or not. In fact, we kick off goes out of style—no matter what the COLUMNIST this month’s issue with the latest report from economic environment may be—has been [email protected] Michel EDITOR AT LARGE the Material Handling Industry of America further validated in the system reports that [email protected] Berman GROUP NEWS EDITOR that forecasts equipment orders to grow have graced Modern’s covers over the past [email protected] Bond CONTRIBUTING EDITOR 12% to 14% in 2010 if the current momen- two years. Offi ce Depot, Kroger, & [email protected] Bond CONTRIBUTING EDITOR tum persists (page 9). , Patagonia, Bon-Ton Stores, The Ap- [email protected] Roach CREATIVE DIRECTOR Mind you, those new numbers are com- parel Group, IKEA…and the list goes on. [email protected] Roach CREATIVE DIRECTOR [email protected] ing off 2009 when orders saw a 34.3% de- Each of these innovation mavericks has put Wendy DelCampo WendyART DIRECTOR DelCampo cline from 2008. But any way we position precious time and strategic thought into [email protected] DIRECTOR [email protected] the latest forecast, we can’t help but see it materials handling projects that will put Daniel Guidera DanielILLUSTRATION Guidera as positive news for the industry overall. It them in a distinct competitive advantage [email protected] [email protected] may even help to crack a few smiles. as the economic fog begins to clear. BrianBrian Ceraolo Ceraolo But while numbers don’t lie, they can of- It’s safe to say that the brutal economy GGROUPROUP P PUBLISHERUBLISHER [email protected]@ehpub.com ten be deceiving. Even though it appeared never once stopped Keith Arntson, vice EDITORIAL ADVISORY BOARD that equipment orders fell off a cliff two president of distribution operations for EDITORIAL ADVISORY BOARD Ron Giuntini years ago, that didn’t mean that materials Del Monte Foods, from thinking how to OEMRon PGiuntiniRODUCT-S ERVICES INSTITUTE OEM PRODUCT-SERVICES INSTITUTE handling professionals went into hiberna- he could help take miles out of the food John Hill ESJohnYNC Hill tion in terms of executing improvement giant’s distribution network by applying TERANSYNCSYSTEMS TRANSYSTEMS projects. a few new innovations inside his To- Susan Rider RSusanIDER & ARiderSSOCIATES In his thoughtful wrap up of HK Systems’s peka, Kan., DC. In fact, after reading this RIDER & ASSOCIATES Ken Ruehrdanz recent Material Handling and Con- month’s System Report (page 18), you can DKenEMATIC Ruehrdanz DEMATIC ference (page 10), executive editor Bob Tre- say that Arntson has fl ipped over a few Dr. John Usher UDr.NIVERSITY John OFUsher LOUISVILLE bilcock recounts a number of conversations materials handling axioms en route to a UNIVERSITY OF LOUISVILLE Col. Alan B. Will that he had with attendees who were eager stunning success. 2Col.D MARINE Alan L OGISTICSB. Will GROUP 2D MARINE LOGISTICS GROUP to share the details of the projects that This month I’m going to leave Modern Brett Wood TBrettOYOTA MWoodATERIAL HANDLING USA they completed over the past 18 months or readers with a challenge. After reading TOYOTA MATERIAL HANDLING USA P   M , LLC moved to the front burner over the past six the Del Monte success story, I’d like you AP   DIVISION OFM , EH P UBLISHINGLLC , INC. A DIVISION OF EH PUBLISHING, INC. Kenneth Moyes months. There was a local authority looking to share with us a few of the innovation PKennethRESIDENT AND Moyes CEO EHPRESIDENT PUBLISHING AND, CEOINC. to put in a new AS/RS; the Federal Reserve projects that you’ve conducted during the EH PUBLISHING, INC. Brian Ceraolo Bank was investigating storage systems; past 18 months. We believe that innovation PBrianUBLISHER Ceraolo AND EPXECUTIVEUBLISHER V ANDICE PRESIDENT and even a specialty foods manufacturer never goes out of style; now help us spread PEEERLESSXECUTIVE MEDIA VICE, LLCPRESIDENT PEERLESS MEDIA, LLC looking to expand a fl eet of AGVs. the good word and inspire a few of the late MAGAZINE SUBSCRIPTIONS Start,MAGAZINE renew or updateSUBSCRIPTIONS your FREE “I don’t think companies plan multi- adopters. Please send me an email on your magazineStart, renew subscription or update at your FREE www.mmh.com/subscribemagazine subscription at . million dollar investments in automation if better idea(s): [email protected]. Contactwww.mmh.com/subscribe customer service at:. Web:Contact www.mmh.com/subscribe customer service at: Email:Web: [email protected] www.mmh.com/subscribe Phone:Email: 1-800-315-1578 [email protected] Mail:Phone: Peerless 1-800-315-1578 Media Mail: P.O. Peerless Box 1496Media Framingham, P.O. Box 1496 MA 01701 Framingham, MA 01701 eNEWSLETTER SUBSCRIPTIONS SigneNEWSLETTER up or manage SUBSCRIPTIONSyour FREE Official Publication of Sign up or manage your FREE eNewsletter subscriptions at Member Member of Winner www.mmh.com/enewsletters.eNewsletter subscriptions at Jesse H. Neal www.mmh.com/enewsletters. Certificates of Merit for Journalistic Excellence

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MMH1010_Editorial.indd 7 10/13/10 2:54 PM 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 • Storage Systems • & Totes • Energy & Sustainability • Lift Truck & Fork Lift • Handling & Warehouse Ergonomics • Packaging • Software & Technology

www.mmh.com/criticaltopics

MMH_CriticalTopics_House.inddMMH1010_Ads.indd 8 1 10/12/108/10/10 10:53 1:17 PMAM Di @blog best of Modern’s blogs

Company Briefi ngs | Bob Trebilcock The age of automation Expressed as an equation: The industrial age + the information age = the automation age mmh.com/blogs/automation

ECONOMY MHIA: Growth is back MHIA FORECASTS 12% TO 14% GROWTH IN NEW EQUIPMENT ORDERS IN 2010.

BY BOB TREBILCOCK, EXECUTIVE EDITOR

IT’S STILL A FAR CRY FROM 2007, late 2011,” Vandiver a growth in orders for but the materials handling industry said. “This is largely MHIA equipment new equipment, Van- is growing once again. Following a due to uncertainty. orders forecast diver forecasts material 34.3% decline in equipment orders in Consumers, inves- handling shipments to 2009, the Material Handling Industry tors and business 13.0% grow 3% to 4% in 2010 (forecast) of America (MHIA, www.mhia.org) is owners need greater and another 10% to forecasting equipment orders to grow confi dence in the 0% 11% in 2011. Domestic 12% to 14% in 2010 if the current economy’s ability demand, defi ned as momentum continues. to sustain positive shipments plus imports A variety of factors are driving growth.” For those less exports, will grow by growth in manufacturing, warehous- reasons, Vandiver 1% in 2010 and by 10% ing and distribution on a global basis, doesn’t expect a to 11% in 2011. Exports especially an increase in industrial pro- signifi cant return to will be stronger than im- duction in the fi rst half of 2010 despite the kinds of num- -34.3% ports in 2010 and 2011, factory utilization rates that remain bers the industry refl ecting stronger indus- 2009 2010 very low by historical comparison. posted in the past trial growth in emerging Source: Material Handling Industry “Consumer demand has not up until 2007. of America (MHIA) markets outside North returned,” Hal Vandiver, executive In addition to America. vice president of business develop- M&A ment for MHIA, told Modern during the association’s fall meeting. “But in HighJump to acquire TrueCommerce the fi rst two quarters, the economy shifted from recession into recovery HIGHJUMP SOFTWARE announced No. 11 on Modern’s 2010 Supply mode, fi lling supply chain pipelines, today that it has reached agreement Chain Management Software an- re-establishing inventories and re- to acquire TrueCommerce, a provider nual list with $85 million in revenue. sponding to pent up demand.” of business-to-business integration TrueCommerce’s solutions enable While Vandiver expects the indus- solutions. TrueCommerce provides a trading partner connectivity for 3,000 try to continue to grow by 11% to comprehensive end-to-end suite of customers, feature predefi ned inte- 12% in 2011, drags on the economy trading partner connectivity solutions gration to many major ERP systems, continue. “Forecasts are now calling including electronic data interchange and can be deployed in either SaaS for a combination of reduced GDP, (EDI) translation and data mapping or on-premise models. corporate profi t, business investment software, transaction network and The TrueCommerce trading part- and output growth with industrial on-boarding services. HighJump ner integration solution complements utilization remaining below 75% until Software (www.highjump.com) ranks HighJump Software’s existing supply

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mmh1010_news.indd 9 10/13/10 10:49 AM el80_US_vertical.pdf 1 2010-09-29 13.46

chain application suite which spans from supplier to store shelf and includes warehouse management systems, transportation management systems, route accounting systems, manufacturing execution, mobile sales and ERP data collection. Trading partner collaboration is increas- ingly important as organizations strive to reduce costs and improve service levels. By combining integration solutions with application functionality, organizations are able to ensure consistency in business processes and accuracy of information exchanged with trading partners. “TrueCommerce has fi lled a unique need in the market for simple, robust and affordable EDI solutions for small and midsized businesses,” said Nick Manolis, TrueCom- merce CEO. “I am excited for the TrueCommerce team to join HighJump, while continuing to provide excellent service, support and product innovation to our customers.” “Combining HighJump and TrueCommerce creates a unique and compelling solution offering within the supply chain software market,” said Russell Fleischer, HighJump Software CEO. “Our view is that supply chain applications C must allow users to connect with a broad ecosystem of

M trading partners to maximize value. The TrueCommerce

Y solution platform, and our previous move to cloud-based applications, will help translate this vision into reality for CM our customers.”

MY SUPPLY CHAIN NEWS ANALYSIS CY

CMY Final thoughts on Supply

K Elettric 80 is a global provider of end-of-line Chain Reset conference automation solutions. These solutions are BY BOB TREBILCOCK, EXECUTIVE EDITOR called Freeway® material handling system. DESPITE SIGNS OF IMPROVEMENTS, doing business in in materials handling remains a challenge. At the same ® Freeway is based on a simple idea: time, many of the leading customers are investing in · Robotic palletizing cells handle goods at the end of the supply chain software and automated materials handling production line systems to improve their businesses. That suggests better · LGVs transport pallets to stretch wrapping and labeling times are coming. · LGVs transport finished pallets to the warehouse · LGVs for Storage & Retrieval (SRS) · LGVs for Auto-Trailer Loading (ATL) · An integrated software management system

The technologies are adaptable and have a high degree of built-in flexibility which makes them suitable for any plant / warehouse layout or design.

More details, explanatory videos and animations can be found at www.elettric80.com.

Tom Brokaw punctuates the 25th anniversary of the Material Elettric 80 Inc. Handling and Logistics Conference by HK Systems. 8100 Monticello Avenue Skokie, IL 60076 USA Phone +1 847 329 7717 [email protected] ITALY · USA · SWEDEN · UK · AUSTRALIA · POLAND

mmh1010_news.indd 10 10/13/10 10:49 AM Those are the two high level take- keep enough labor to run his primary living up to its promises. The reason: aways from Supply Chain Reset, the distribution center. Two presentations The company can’t fi nd enough labor annual logistics conference held last drove this point home. The fi rst was willing to work in its picking and month in Park City, Utah, sponsored from an executive with Tim Hor- palletizing operations. The other was by HK Systems, now part of Dematic. tons, the Dunkin Donuts of Canada. by Terra Winston, a consultant, who “Lousy” was the most common The company’s beautiful new DC in presented a case study about a proj- response to the dinner-time question: Guelph, Ontario, is underperforming ect at PepsiCo to develop the next “How’s business?” projections even though the AS/RS is wave of supply chain leaders. Her At the same time, the roll call of end user companies that said they had projects in the works or on the Leader of the Pack... drawing board was both a Who’s The originator of high speed narrow belt sortation, Who of American business, with TGW Systems has led the way in offering proven names like Coca-Cola and Kraft, and companies many of us may never advantages over conventional sortation for over 10 years have heard of or think of as custom- ers of our solutions. For example, I sat on the van from the airport with a guy from the Los Angeles metro- 50% less install time politan transportation system looking 60% less energy for a new automated storage and retrieval system (AS/RS). The Federal 75% less noise Reserve Bank was there, investigat- ing storage systems. I rode in the 100% of the Value van back to the airport with a woman from a producer of honey in Texas who had both an AS/RS and auto- matic guided vehicles in her facil- NBS from ity and was looking to expand her system. Those are signs of a growing con- TGW Systems fi dence: I don’t think companies plan multi-million dollar investments in au- tomation if they think the apocalypse is right around the corner. Proven track record – Over 700 installations around the world have made TGW’s One other anecdotal data point: Narrow Belt Sorter one of the most reliable sorters available. Marc Ducharme, a vice president and partner with Axium, a supplier Rugged durability – TGW’s NBS sorters operate in some of the harshest distribution of robotic materials handling solu- environments in the world, earning customer’s admiration and competitor’s respect. tions, told me that 2009 was a dismal Application and layout fl exibility – The universal frame on TGW’s narrow belt year for implementations, but that sorter means you can use multiple divert options and easily add divert modules his company has been swamped with after installation for increased fl exibility. RFPs in 2010. An RFP is not an order, Patented technology – Patented sortation technology in the TGW’s narrow belt but it’s a sign. sorter continues to lead the way in effective, energy effi cient, fl exible sortation. A few other observations: Retaining labor and talent could TGW Systems (formerly TGW-Ermanco) is an be the most important issue facing integrated logistics solutions and material handling equipment provider. The Ermanco name lives on the industry in the future: A week or as the product family name for the conveying and so before going to Utah, I had a con- sortation products manufactured in the US. versation with a vice president of sup- Our worldwide perspective and resources, and ply chain for a major retailer who told commitment to innovation, product development, www.tgw-group.com and unparalleled customer service can help you today. me he is interested in automation because he simply cannot fi nd and

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10 08 NBS.indd 1 8/30/2010 3:40:08 PM mmh1010_news.indd 11 10/13/10 10:49 AM point: the talent shortage isn’t in a pooling model. limitedable to makejust to better the shopdecisions—especially fl oor. talk to each other. Transportation man- advances: New players are get- in Retrofithe case tting of isthe a viableunexpected. solution: “When agement systems (TMS) in conjunction 1. Smallerting intogaps automation: and self-regulat- Kip Youa shipment know the is oldheld saying: up at theEvery- port,” says with the event management modules ing conveyors.Tygard, In whose the lastcompany year, the thingPrashant old isBhatia, new again. director Wegman’s, of solutions help optimize freight, determine pick-up sliding shoemakes sorter the has Tygard undergone Claw, note- amanagement Midwestern at grocer, SAP, “itand can Rubber- trigger logic windows, determine carriers, keep track worthy transformations.a lift truck attachment “By doing fora par- maidback toboth say gave that I’vestrong got presenta-a problem. I can of in-transit times and create ASNs. allel divert,mixed we can case now palletizing, run the packages is tionsno longer about allocate how they that replaced inventory ag- on that That ASN not only gets sent back closer togetherinvesting and get R&D a higher money through- to ingparticular AS/RS shipmentcranes to as breathe I thought new I could.” to the ERP for visibility, but it also put on thedevelop same system,”an automated reports Ken life 3.into One their database, DCs. Meanwhile, one system, one gets sent to the WMS where the sys- Ruehrdanz,version manager of forthe Dematic’s Claw. That’s distri- Anheusersupply chain. Busch In gained the last new few ef-years, soft- tem uses the information to plan labor, bution andnot warehousing a big shock: markets. Tygard fiware ciencies providers in its Columbus,have been Ohio,pulling all of equipment and resources at the receiv- The slidingis an shoes OEM. that But used I also to had physi- Leading customers are investing in software and automated facilitytheir products by upgrading onto a singlea warehouse supply chain ing dock. When the physical product cally push conversationsthe off with the twosorter at systems to improve business, according to attendees of the controlprocess system.platform. “It’s fairly new,” says arrives, logic within the WMS, based an angle canvery now large run end those users shoes in the in Supply Chain Reset conference. Lamphier.Everyone “Various loves pallets: components Based have on the receipt of goods, determines parallel, enablingwholesale smaller food gaps distribu- between inbeen Iowa, integrated Green Line into Armor that issupply offering chain a tagmatches that is against used by actual Green demand. Line Armor tioncartons—which business that were have previously designed from 6 heavy-dutyprocess platform hybrid longer wood/plastic than others, pallet but to identify the pallet and manage war- theirinches own to 8automated inches—down systems—one to 3 inches. foractually permanent moving pallet our pools.WMS Theonto 48- it xhas rantySmarter, services. speedier Active RFID equipment tags were hasWith built more and implementeddense traffi c on its conveyors, own 40-inchbeen a palletmore hasrecent heavier development—just stringers installedWith formore John retailers Deere, the crossdocking company’s AS/RScrossdock design operators for freezers can run for tyears,heir con- andwithin more the deck last quarter board coverageor two.” than largestover 50% customer, of their toitems track at the the location case level theveyors other at a has lower designed speed while its own still caseachiev- a grocerySAP usespallet. its The enterprise lead boards resource on ofto worktheir in stores, process equipment stored on innovationsthe pallets pickinging the sameapplication throughput. that it Slower intends speeds theplanning top and (ERP) the bottom system of as the the pallet— central betweenhave centered manufacturing on conveyor processes. sortation Eric toequal put less out wear for bid and totear, the decreased materials energy thoserepository most of likely information to get damaged of supply by and a Renteria,systems, theprint company’s and apply president, mechanisms, said handlingusage and community. less maintenance. Both say they liftdemand, truck—are as wellmanufactured as inventory, from for heavy the theand pallets, automatic which identifi come cation with a technolo-10-year mayAnother commercialize conveyor their breakthrough solutions in is plastic.entire supply The pallet chain. has And a passive the modules RFID all warranty,gies. Here can are be purchasedthree new orequipment leased theautomatic future. speed control. “The whole

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©Wildeck, Inc 2010 Required safety gates and guarding removed for clarity.

12mmh.com O CTOBER 2 0 1 0 / MODERN MATERIALS HANDLING MODERN MATERIALS HANDLING / APRIL mmh.com2010 49S

mmh1010_news.indd 12 10/13/10 10:49 AM MMH100401sup_Crossdock_ID 49 4/8/2010 11:36:20 AM WAREHOUSES/DCS quality logistics space at cyclically Industrial real estate market making low rates. And with slow levels of progress, challenges remain leasing activity and sparse construc- tion, industrial real estate options— THE INDUSTRIAL REAL ESTATE going forward,” Craig Meyer, managing especially in the Class A large block market is taking steps in the right director and leader of JLL’s Logistics and sector—are limited in some markets. direction, according to a report Industrial Services Group told Modern. And the swift correction in invento- recently issued by global real estate “Any kind of sustained, demand-driven ries during the second half of 2009 and fi rm Jones Lang LaSalle (JLL, www. component in the industrial real estate fi rst quarter of 2010 has left inventory joneslanglasalle.com), which report- market is going to be driven by jobs. levels lean and ready for expansion, ed the national average vacancy rate We are just not seeing any of that. It is provided sales rebound in the coming for the North American industrial real going to be a long, slow recovery.” months. Should this occur, it could lead estate sector fell from 10.6% in the Looking at base indicators like the to increased industrial and logistics real fi rst quarter to 10.4% in the second Institute of Supply Management’s estate leasing activity. quarter. Despite the slight decline Manufacturing Index, Consumer The report also pointed out that in vacancy, the fragile economy still Confi dence data, and industrial real the initial recovery in the economy looms large due to declining con- estate vacancy and absorption rates, was largely driven by improvements in sumer confi dence, the drying up there does not appear to be what the manufacturing sector and cyclical of economic stimulus funding, and Meyer labeled as a strong indication adjustments in inventories. But with the the potential threat of a double-dip of a positive upswing on the horizon. recovery now becoming more broad- recession, the report noted. The report says that a need to based, the recent slowdown of inven- “We have seen a positive absorp- restock inventories that were running tory building could have more of an tion in the vacancy rate in the second at 50-year lows resulted in large com- impact on the industrial property sector quarter, but we are very concerned panies strategically capturing high than the offi ce sector, the report noted.

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mmh1010_news.indd 13 10/13/10 10:49 AM Date: 09.09.10 Client: Rehrig Pacifi c Job #: 08312010 File Name: 0831_RPC_SlipSheet_Ad_MMH_Oct10 Round: Account Director: Niki Phan Designer: Revised By: ov Editor: Production: ov Color: 4C/Process Trim: 7" × 4.625" Bleed: 0 Safety: 6.75"× 4.375" Fold: n/a Publication(s): TBD Run Date(s): TBD Approved By: “We are also concerned about ing, Meyer said there are an infi nite ing, a double-digit vacancy rate, and seasonality with the holiday season number of these on the market. no increases in lease rates, which, he coming up,” said Meyer. “The indica- Looking ahead, Meyer said there noted, are actually weakening a little tions we are getting are that we may will still be downward pressure on pric- bit and tend to lag a recovery. not see as much preparation for that as we hoped. A lot of retailers are saying LIFT TRUCKS they are restocked and if consumer Crown unveils 20 electric lift trucks confi dence is going down, they are to operate with fuel cells not going to build up inventories. And for larger, big box companies, they will CROWN EQUIPMENT Corp. has quali- neers evaluate fuel cell performance see declining values in rents, but the fi ed 20 of its electric models to operate and monitor whether issues develop availability of product for them to lease with various fuel cells, bringing the that affect the truck’s operation. is diminishing.” total of qualifi ed combinations of fuel To qualify a fuel cell pack and truck As a result, Class A big box dis- cell packs and trucks to 29. In 2009, combination, Crown’s engineers review tribution space is becoming more Crown (www.crown.com) was the fi rst key performance metrics for a battery- diffi cult to fi nd in this economy, said lift truck manufacturer to introduce a powered truck, such as traction, plug- Meyer. But the build-to-suit market fuel cell qualifi cation program. ging, and lift and travel speeds. Then could come back for major retailers, as Eric Jensen, Crown’s manager of they replace the battery with a fuel cell evidenced by a new 1-million-square- new technology, research and de- power pack and measure the same foot DC space deal by Amazon.com velopment, told Modern that the indicators. Through modeling and ap- in Harrisburg, Pa. and a 1.4-million- company’s fuel cell qualifi cation pro- plication testing, the research team de- square-foot location in Phoenix. gram duplicates its own testing, and termines design modifi cations needed But for a mid-sized industrial is conducted at a 25,000-square-foot to ensure the fuel cell-powered forklift building in the 100,000-to-150,000- research facility near Dayton, Ohio. matched standards to which the truck square-foot range Class B-sized build- Through the testing process,BFL AD engi-MMH APRIL was9/27/10 designed. 3:58 PM Page 1

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14 O CTOBER 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

mmh1010_news.indd 14 10/13/10 10:49 AM environmental sus- so they don’t have to deal exhaust tainability goals.” issues, Jensen said. Another advan- Crown continues tage pointed out by Jensen is a fuel to work closely with cell powered truck’s ability to effec- fuel cell manufactur- tively operate in a cold environment ers and customers because they generate their own to qualify trucks as heat and the power doesn’t fall off new fuel cell pack like a traditional battery. models are intro- While the upfront hardware cost duced. “Forklifts are of fuel cells is more expensive than a key early market for a traditional battery, Jensen pointed fuel cells,” said Lisa out the potential to capture savings in Callaghan Jerram, labor, battery changes, battery rooms, To qualify a fuel cell pack and truck combination, engineers senior market analyst and heating and venting. With fuel review key performance metrics. for Fuel Cell Today, cells, he said, a facility doesn’t need “We’ve been steadfast in our posi- a leading analyst a battery room and all that goes in to tion that deployment of a fuel cell fi rm providing market-based research running it properly. Instead, there is an forklift fl eet must be carefully evalu- on the fuel cell industry. “Based on ongoing savings associated to using ated and tested for appropriate use our market research, we have found fl oor space for production or other in a warehouse,” said Jensen. “This strong growth in this sector in the past value-added operations. research-based approach means that three years.” “Fuel cells have always been talked our customers can confi dently know Because fuel cell powered electric about fi ve years into the future, but they have the right truck for their forklifts give off exhaust in the form we have customers who are [currently] chosen fuel cell, allowing them to of moist, warm air, IC truck custom- planning installations around this prod- meet their performance, safety and ers are looking to this technology uct,” said Jensen. “The future is here.”

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mmh.com MODERN MATERIALS HANDLING / O CTOBER 2 0 1 0 15

mmh1010_news.indd 15 10/13/10 10:49 AM lift truck TIPS

Level the playing field

In the right application, tuggers and carts can be a fast and efficient solution.

By Josh Bond, Contributing Editor

ootball season is under- way, and fans are hoping Ffor breakout performances from stars and rookies alike. On the gridiron, an overpowered player can be a distinct advan- tage. In the warehouse, how- ever, too much power can lead to waste, danger and sluggish performance. For some corpo- rations, this fact has prompted consideration of fork-free envi- ronments, where versatile and custom-built carts and tuggers can do the work faster and more efficiently than their big- GraphicCaption ger cousins. Disposing of expensive and powerful equipment in favor of carts may seem counter- “Companies looking at carts are looking at the cost of intuitive, but Jill Burrow, marketing manager for Topper equipment and the cost of maintenance, but they’re also Industrial, says certain warehouses might benefit greatly looking at safety,” says Brown. from the switch. For operations requiring multiple trips In addition to ergonomics and safety, a fork-free zone between the same areas, carts can cut travel time sig- might help a warehouse reduce product loss and equip- nificantly. According to Ed Brown, president of Topper ment damage. Carts provide a secure cradle for moving Industrial, a tugger can pull as many as 13 carts. In addi- product, while some fork-borne loads are prone to top- tion, says Brown, carts and tuggers can be easier to use pling. And forklifts, often 10 times as heavy as a tugger than many forklifts. and cart setup, have a way of proving their strength by “A forklift costs five times as much, but a forklift opera- leaving dings and dents on storage racks and other hap- tor also costs five times more than a tugger operator,” less stationary objects. says Brown. “Anyone can grab a tugger and go.” With carts and tuggers, Brown says most companies Once a forklift drops off a pallet, in many cases a see a return on investment within a year. In football, a picker must bend to access product or arrange for the first-round draft pick can cost millions over a multi-year pallet to be lifted. Carts, on the other hand, can be contract before he produces the desired results. For com- configured with swiveling or angled platforms to allow panies not looking to attempt such a Hail Mary, tuggers pickers fast and comfortable access to products. could prove an efficient alternative. Worker safety issues tied to forklifts that operate in tight areas, such as poor visibility when driving in re- Josh Bond is a contributing editor to Modern and can be reached at verse and dock mishaps, can also be greatly reduced. [email protected].

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MMH1010_LiftTruckTips.indd 16 10/13/10 9:42 AM MMH1010_Ads.indd 17 10/12/10 10:53 AM MM100601Ads.indd 3 6/3/10 3:49 PM modern system report

Four conveyor-topped vehicles ferry loads from an adjacent manufacturing plant.

Keith Arntson, vice president of distribution operations for Del Monte Foods

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MMH1010_SystemRptDelMonte.indd 18 10/12/10 3:23 PM modern system report Best inclass Del Monte Foods’ new Topeka DC brings laser-guided AGVs from manufacturing into distribution. The result is a best-in-class materials handling system that minimizes costs with room to expand in the future.

By Bob Trebilcock, Executive Editor

utomatic guided vehi- ferry loads of pet products from an cles, or AGVs, have adjacent manufacturing plant to a been a of materi- transfer conveyor in the distribution als handling in a manu- center. There, the loads are automati- facturingA environment for decades. cally placed on pallets and staged for It’s not uncommon to find a fleet of putaway in the DC. Each vehicle can 20 or more vehicles delivering product carry four loads at a time. to the assembly line in a large automo- • An additional 35 fork-equipped tive plant. vehicles handle most of the tasks usu- But, AGVs in a distribution cen- ally performed by lift trucks in a con- ter? Not so much. In DCs, they ventional distribution center. They have largely been relegated to mov- automatically put loads away into stor- ing product from the plant to an age locations on the floor or in pallet adjoining DC. That may be about to rack, replenish pallet pick locations in change, if the 420,000-square-foot pick aisles, and deliver full pallet picks distribution center opened by Del to a staging area in the shipping area. Monte Foods in Topeka, Kan., last Both vehicle types use a laser- October is any indication. guided navigation system to direct There, Del Monte has put to travel through the facility. Lift trucks work a fleet of 39 laser-guided AGVs still play a role loading and unloading (Elettric80, us.elettric80.com). trailers at the dock and filling orders

PHOTOGRAPHY BLAINE FISHER • Four conveyor-topped vehicles for mixed-case pallets.

mmh.com Modern Materials Handling / O c t o b e r 2 0 1 0 19

MMH1010_SystemRptDelMonte.indd 19 10/12/10 3:23 PM modern system report

“This was a greenfield facility, which Lift trucks are limited in use to gave us a unique opportunity to design the docks and case picking. a facility that leverages innovation and technology from day one,” says Keith Arntson, Del Monte’s vice president of distribution operations. “We believe the delivered cost of its prod- this is one of the largest, if not the larg- ucts and reduce the lead times it est, installations of AGVs in a distribu- could offer to customers. “Once tion center in North America.” we completed the network study, After less than a year of operation, the Midwest offered us the the system is delivering a number of greatest opportunity for supply benefits, including exceptional uptime, chain efficiencies,” says Arntson. accuracy and reduced product damage. “We still ship product to forward “The system is performing at 99.99% DCs in other parts of the coun- uptime, which was higher than we try, but in the Midwest, we can expected, and the system has been ship directly to our customers.” 99.99% accurate,” says Arntson. “Our Likewise, the DC acts as a for- damage rates are significantly lower than ward DC for other complementary Del modeled a range of options, from a in our conventional facilities.” Monte products that are not manufac- traditional warehouse to an automated tured in Topeka. storage and retrieval system (AS/RS) Streamlined operations Once the decision was made to to the AGVs. Careful attention was The Topeka distribution center was locate in Topeka, the Del Monte team also paid to everything from the light- first conceived as a network optimiza- worked with a design and integration ing to how the trailers were laid out in tion project. The manufacturing plant firm to develop materials handling pro- the yard. in Topeka had no warehouse space. cesses and systems that would mini- To learn more about AGVs, the team Instead, pet products manufactured in mize the amount of times the product visited a number of manufacturing sites Topeka were shipped to forward distri- was handled in the facility, maximize that were using laser-guided vehicles, bution centers in Chicago, Texas and labor and easily scale as throughput at in part because no distribution center Georgia. the DC grows in the future. was using the technology to the extent Some of that product, however, “We were tasked with building a that it would be used by Del Monte. would end up retracing a route back best-in-class DC that utilized proven According to Arntson, the laser-guided to the Midwest to fill customer orders. innovation and produced the lowest technology stood out for three reasons. About three years ago, Del Monte delivered cost so we could remain com- First, it was precise. “Our AGVs began looking at ways to take miles out petitive in the market,” Arntson says. don’t just take a load to location X,” of its network. The goal was to lower To meet those goals, Del Monte Arntson says. “They go to a specific location on the floor to within a centi- “The system is performing at 99.99% uptime, meter and they do that time and time again.” That precision not only meant which was higher than we expected, and the more accurate inventory and storage system has been 99.99% accurate.” information, it also meant that product — Keith Arntson, vice president of distribution operations, Del Monte

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MMH1010_SystemRptDelMonte.indd 20 10/12/10 3:23 PM modern system report

was unlikely to be damaged as it was just maximize the labor requirements to get through the learning curve very moved around the facility. for the new facility; the company also quickly,” says Arntson. “In a matter of Second, AGV technology was wanted to get the same kind of opera- three or four weeks, we had fine-tuned mature, proven and predictable. “The tional efficiencies from the vehicles our processes and had full task inter- feedback we got from end users made that it would get from a Tier 1 ware- leaving in place.” us realize that this was no longer bleed- house management system (WMS) With nearly a year of operation ing-edge technology,” Arntson says. “We managing tasks in a conventional ware- under their belt, Arntson says the saw vehicles that had been fully opera- house. “What’s important isn’t just that project is meeting its goals. “We set tional in a 24/7 environment for years, you’re using automated equipment,” out to build a best-in-class distribu- and were very efficient and successful.” he says. “It’s also how well you utilize tion center that allows us to reduce Third, because Topeka would be a the equipment to accomplish tasks and waste at all levels with a low delivered 24/7 operation, Del Monte could more drive down mission times.” cost,” Arntson says. Beyond that, he easily justify the capital investment. In Del Monte’s facility, the WMS adds, “we have significantly reduced In the end, AGVs offered the best and the AGV control system work our network miles, which is a sustain- opportunity to meet the goals for the together on task interleaving; when a ability play, and we’re closer to our new DC. What’s more, the technol- vehicle completes a task, the system customers to respond to their swings ogy could easily scale in the future. “If chooses its next assignment based on in demand. We’re now best-in-class on our business grows in the future, all the next closest task to be completed. many of our customer score cards out we have to do is add another vehicle to That minimizes empty travel time and of that site.” keep up with demand,” says Arntson. maximizes the use of the equipment. Putting AGVs to work “We have a large tele- Installing a fleet of 39 laser-guided vehi- vision monitor in the cles involved more than unloading them control room that shows from the truck and flipping a switch. For where the vehicles are at starters, to get the most from the vehi- all times and allows us to cles, the location, layout and installation watch the entire building of the storage areas, including the rack operate,” says Arntson. system, had to be very precise. “If you “That allowed us to iden- install racking in a traditional warehouse tify bottlenecks in our you can be a little off,” says Arntson. original design, and then “The specifications have to be spot on to prioritize tasks and imple- work with AGVs.” ment strategies within Exactness is necessary because the the WMS to drive down vehicles are so precise that any devia- mission times.” tion in the level of the floor or the loca- That work was done tion of a rack can throw off the naviga- collectively by Del tion system. Monte, the systems More importantly, says Arntson, integrator and the AGV Del Monte wanted to do more than provider. “We were able

Del Monte relies on more than 30 fork-equipped AGVs for putaway and pallet picking in the distribution center.

Modern Materials Handling / O c t o b e r 2 0 1 0 21

MMH1010_SystemRptDelMonte.indd 21 10/12/10 3:23 PM 615

modern system report

Automatic guided vehicles Del Monte Foods streamline operations Topeka, Kan.

Laser-guided AGVs move product from the Size: 420,000 square feet manufacturing plant and through the distribution center. of distribution space Products: Pet products By Bob Trebilcock, Executive Editor Shifts: 7 days, 24 hours

A fleet of 39 laser-guided automatic a discharge conveyor (1). One of four Employees: 50 in distribution guided vehicles (AGVs) has stream- conveyor-topped vehicles interfaces lined the materials handling processes with the discharge conveyor to pick up and reduced the number of touches in a load. Each AGV can carry four loads. dock. The load is palletized, scanned, Del Monte’s highly automated new dis- Once the vehicle has picked up all of its and staged for pick up and putaway. tribution center in Topeka, Kan. loads, it travels through a 75-foot breeze- Putaway: Palletized loads are Receiving: The Del Monte distribu- way connecting the DC to the plant picked up by one of 35 fork-equipped tion center receives product from the and drops the pallets at a transfer sta- vehicles. The AGV is then directed adjacent manufacturing plant (1) and tion (3a). There the slip-sheeted loads to a rack or floor storage location (4) at the shipping and receiving area (2) are placed on a pallet, automatically based on pre-defined locations in the from other Del Monte manufacturing scanned and staged for pick up and put- facility’s warehouse management sys- facilities. Locally manufactured prod- away. At the receiving dock, slip-sheeted tem (WMS). Locations are prioritized uct is automatically loaded onto a slip loads are unloaded by lift truck and based on whether the product is a sheet, stretch-wrapped and staged on placed on a transfer station (3b) on the fast-, medium- or slow-moving item. No bar code scan is required to con- firm the putaway by the vehicle since

Transfer Storage 4 station 3a

Receiving Storage 4 from plant/ Discharge 3a Transfer 6 conveyor station 1 Pick aisles

Transfer Storage 4 Staging station Transfer 5 Staging 3b station 5 3b Staging Shipping 2 5 and receiving

22 O c t o b e r 2 0 1 0 / Modern Materials Handling mmh.com

MMH1010_SystemRptDelMonte.indd 22 10/12/10 3:23 PM 615

modern system report

the system is nearly 100% accurate. Once the AGV drops off a pallet load, System suppliers the system knows that it is available Automatic guided vehicles: Elettric80, 847-329-7717, for the next task. us.elettric80.com Picking: As with receiving, pick- Systems integrator: Peach State, 800-998-6517, ing may be done using automation or www.peachstate.com conventional processes. Full pallet picks are handled by the AGVs. The Transfer conveyor: Systec Conveyors, 800-578-1755, system directs a vehicle to a floor or www.systecconveyors.com rack storage location (4). The pallet is Rack: Unarco Material Handling, 800-862-7261, then delivered to a staging area (5) in www.unarcorack.com the shipping area or to replenish a pick Warehouse management system: EXE Technologies (Infor), location in one of the pick aisles (6) 678-319-8000, www.infor.com/solutions/scm/wms that run the length of the building. Lift trucks: Yale Materials Handling, 800-233-9253, Mixed-SKU orders calling for www.yale.com mixed pallets are fulfilled using con- ventional processes. The WMS deliv- Bar code scanning: Accu-Sort Systems, 215-723-0981, ers picking instructions, including the www.accusort.com location and the quantity of cases to be picked in the pick aisles (6), to order selectors on RF devices. Cartons staged (5) in the shipping area. ping, the system directs lift truck are picked to pallet. Once the pallet Shipping: Once pallets are built, operators to load the pallets onto is complete, it’s stretch-wrapped and stretch-wrapped and staged in ship- trailers (2). M

AGVs North American Representative

Custom AGV Specialists, New or Retrofit programmable optical sensors for safe operation near Transfer Arm Storage 4 Transfer pedestrians and in confined spaces. The AGVs follow a SAM LodeArm station self- magnetic tape for simple setup with no floor Shown with Optional Pedestal Mount Shown with Optional Trolley Mount 3a modifications. Toyota Material Handling, 800-226-0009, www.toyotaforklift.com. AGV to fork Your Complete Lifting truck collision Solution Storage 4 avoidance Receiving Robotic pallet truck handlescontrol 8,000 pounds available from plant/ The vision-guided GP8 robotic pallet truck frees skilledStack pallets Discharge 3a Transfer up to station 6 employees Retrofit byof large performing vehicles with non-value-added new work by36’ highauto- in conveyor controls and wiring done on site. warehouse mating pallet transport. After lanes 1 Pick aisles an operator New offboard positions AGV system the software, ReactionArm Taurus traffic control and I/O’s as well as Shown with Optional Pedestal Mount Shown with Optional Pedestal Mount vehicle’s 96-inch system expansions.long forks Transfer Storage 4 under the pallet, the industrial Staging station mobile robot transports pal- Transfer 5 Staging lets to an assigned location, 3b station 5 automatically positions them, 3b Staging and returns to the original Shipping 2 5 starting AGVE CB10, point—or CB12, chopper other and pre- motor repair, parts & service and receiving assigned location—for more www.amerden.com work. The vehicle handles [email protected] to 8,000 pounds and stores Visit www.positech.com 904-826-4490 / Fax 904-826-4491 25 miles of learned routes. Powered by a 24-volt DC battery, the vehiclemmh.com travels at a maximum speed Modern Materials Handling / O c t o b e r 2 0 1 0 23 of 3.5 miles per hour. Seegrid, 877- 733-4753, www.seegrid.com. MMH1010_SystemRptDelMonte.indd 23 10/12/10 3:23 PM Roller forks handle palletless loads

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

mmh.com MODERN MATERIALS HANDLING / APRIL 2010 47

MMH100401ProdFocus_ID 47 4/8/2010 11:35:13 AM New Applications for Industrial Robotics Virtual Conference & Exposition robovirtualevents.com

OCTOBER 27, 2010 9:00am–5:30pm EST The Future of Packaging, Warehousing, and Distribution Come Meet the Robotics Technology Leaders—It’s All Online and FREE!

Don’t Miss This Featured Session Presentation! Trends in Automation: The Emerging World of Robotic Materials Handling Presented by: Bob Trebilcock, Modern Materials Handling From the receiving dock to pick modules to palletizing, the robots are coming. In a tough economic environment, materials handlers are investigating ways to put mobile and overhead robots to work in the plant and distribution center. In this session, Bob Trebilcock, executive editor of Modern Materials Handling magazine, will look at the emerging world of robotic materials handling, whether the technology is hype or real, and at what types of applications and operating environments are ripe for a robotic solution.

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MMH1010_Ads.inddMM1010 ppxx RoboVTS.indd 24 1 9/30/1010/12/10 5:23:56 10:53 PMAM modern productivity solution

Tilt toward safety and productivity Aluminum parts manufacturer uses ergonomic lifting equipment to prevent worker injury and increase production.

By Lorie King Rogers, Associate Editor

aiser Aluminum, which has been providing ation phase, an animated 3-D video showed exactly Kaluminum components to the aerospace, man- how tilters (Presto Lifts, www.prestolifts.com) ufacturing and industrial markets since 1946, pro- could solve ergonomic and production issues. duces several different types of aluminum automo- The tilters permit workers to pick out parts by tive parts at its facility in South Carolina. During bending only slightly, using a push-button, hand- the manufacturing process, parts are transported held pendant or pedestal-mounted controls to to workstations in large wire baskets for further hydraulically adjust the unit to the most convenient processing like stamping, bending and heating. To angle (up to 89°) as the is depleted so get a part, a worker bends over and reaches down parts are kept within easy reach. With unrestricted into a basket to lift it out. As the level of parts in access to the contents, there is virtually no risk of a container drops, workers must bend lower and back injury. reach deeper. Kaiser purchased a variety of tilters, some of This action can not only cause fatigue and strain, which also lift. All models are designed to provide it can rob valuable time from the production pro- easy access to parts in large containers. Workstations cess. Concerns about the potential for employee vary, so different models were chosen to keep parts back injuries and production-line bottlenecks led at the most convenient level at each location. A full Kaiser management to investigate ergonomic solu- container can be easily placed on any unit with a tions for their workers and an improved production hand pallet truck or lift truck. process for their business. Since installing the ergonomic lifting and tilt- Company managers met with equipment suppli- ing equipment, management reports that - ers to evaluate the current manufacturing process necks have been eliminated and production lines and identify solutions. During the equipment evalu- have sped up. M

mmh.com Modern Materials Handling / O c t o b e r 2010 25

MMH1010_ProdSol.indd 25 10/13/10 9:41 AM modern special report Top 20 automatic data capture suppliers

The ADC market took a significant hit in 2009, but the recovery may already be underway.

By Bob Trebilcock, Executive Editor

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MMH1010Top20_ADC2.indd 26 10/13/10 9:43 AM modern special report automatic data capture suppliers

eality bites, and in 2009, the declined through much of 2009, all of the status quo; there were no major automatic data capture busi- the categories VDC tracks began to grow mergers or acquisitions last year, and ness was bit hard. The total again modestly by the end of the year. no real departures from technologies market for industrial automatic Emphasis again on the word “modest.” or markets. data capture (ADC) solutions With business on the ropes, most Likewise, the 2009 market leaders Rcame in at roughly $15.2 billion in 2009, major players focused on maintaining included familiar faces: Once again, according to Massachusetts-based VDC Research Group (www.vdcresearch. Top 20 ADC suppliers by revenue com), down about 15.5% from the more ($ millions) than $18 billion spent on industrial ADC Total 2009 in 2008. Rank Company Revenues Web site But it was a tale of two years, and a 1 Motorola $1,074.0 www.motorola.com modest recovery may already be under- 2 Zebra $434.3 www.zebra.com way, buoyed by investments in RFID 3 Intermec $365.0 www.intermec.com technology and 2D imaging solutions, 4 Datalogic/PSC $328.4 www.datalogic.com according to Drew Nathanson, VDC’s 5 Honeywell (HHP) $308.0 www.honeywell.com director of research operations. The 6 SATO $223.0 www.satoamerica.com emphasis is on the word “modest.” 7 TEC $166.9 www.tecamerica.com “There is still a lot of uncertainty about 8 Psion Teklogix $155.1 www.psionteklogix.com the economic recovery and that impacts 9 SAVI $147.9 www.savi.com this market,” says Nathanson. 10 Avery Dennison $123.4 www.averydennison.com The ADC market includes handheld 11 Printronix $113.8 www.printronix.com and stationary bar code scanning and 12 Denso Wave $110.4 www.denso-wave.com imaging devices, bar code printers, con- 13 LXE $89.0 www.lxe.comw sumables like bar code and RFID 14 Vocollect $85.5 www.vocollect.com tags, RFID solutions for the supply 15 Datamax-O’Neil $73.2 www.datamaxcorp.com chain, and ruggedized mobile computing 16 Siemens $63.5 www.usa.siemens.com solutions for the factory and warehouse. 17 Casio Computer $59.9 www.casio4business.com As Nathanson notes, the recession 18 Mobilecompia $54.5 www.m3mobile.co.kr didn’t hit the ADC industry until the 19 Bluebird Soft $51.2 www.mypidion.com fourth quarter of 2008. And while there 20 Unitech $38.1 www.ute.com is no question that solution providers Source: VDC Research Group

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“Business conditions across the board were very challenging, and when it comes to the warehousing, manufacturing and logistics space, these are increasingly mature markets.” —David Krebs, VDC’s director of mobile and wireless computing practice

tings, like hospitals, libraries or resorts. ing and logistics space, these are increas- Nor do we include companies that only ingly mature markets. While there is manufacture consumables like bar code some growth in emerging markets, the labels and RFID tags. replacement and upgrade market is driv- While the overall market for ADC ing much of the business, not expansion.” solutions totaled $15.2 billion, each However, Krebs is watching the Motorola (www.motorola.com/us) led of the industry segments experienced impact of smart phone technology on with an estimated $1.074 billion in rev- their own dynamics last year that may ruggedized mobile computers. “The enue. Motorola was followed by Zebra have been different from the overall rapid growth of the iPhone and Android Technologies (www.zebra.com) with market. operating systems in the consumer mar- $434.3 million. The top five was rounded ket is beginning to impact the industrial out by Intermec Technologies (www.inter- Mobile computing market,” says Krebs. At the same time, mec.com), which recaptured the No. 3 The market for ruggedized mobile com- he adds, most of the initial applications spot with $365 million, Datalogic/PSC puters reached $1.9 billion in 2009, have to do with field service. “While the (www.datalogic.com) with $328.4 million, says David Krebs, VDC’s director of the products they design for those environ- and Honeywell with $308 million, accord- mobile and wireless computing practice. ments could impact warehouse prod- ing to estimates provided by VDC. Printer Approximately $500 million of the mar- ucts, I think the warehouse is one of the maker SATO, which had been No. 3, ket is attributed to solutions on the plant last places you’ll see these devices take dropped to No. 6 with $223 million. or DC shop floor, or in port and yard hold,” he says. applications, while stationary devices The market for wearable computers, Collecting the data for lift trucks accounted for about $180 a category that includes voice recogni- This is Modern’s ninth-annual look at million in 2009. Both figures represent tion technology, totaled $175 million the leading manufacturers of ADC hard- significant declines from 2008, with the last year, a drop of about 10% from ware and solutions. Because the industry handheld market down about 24% and 2008. Adoption of voice and wearable includes public and private companies, the lift truck-mounted market down by solutions saw a big run-up in 2007 and this is the second year in a row that we roughly 31%, a figure that comes close 2008, especially in consumer packaged asked VDC Research Group to compile to mirroring the decline in lift truck sales goods industries. While Krebs contin- the data: Since their analysts are cover- last year. ues to see a great deal of interest in ing this technology every day, they are However, the market has begun to voice, it is still a niche market. closer to the market. improve. Krebs estimates that the mar- “One of the challenges to adoption To make our list, companies must ket for handheld devices will grow by a has been the high cost of dedicated voice sell in North America, though the chart compound annual growth rate (CAGR) terminals versus a voice-enabled mobile includes worldwide revenues. Modern of 8.4% through 2014, with the lift computer,” he says. “Still, we’re seeing does not include resellers, systems inte- truck market growing by 5.8% per year. interest, especially in multi-modal envi- grators or other companies that do not The economy, rather than any new ronments that leverage voice, bar codes manufacture ADC hardware. Since our technological development, dominated and other ADC technologies.” readers are primarily focused on supply the news in this space last year. “Business chain solutions, we do not include com- conditions across the board were very Scanning and panies whose primary focus is the retail challenging,” says Krebs. “And, when it The markets for bar code-related hard- checkout counter or non-industrial set- comes to the warehousing, manufactur- ware saw some of the most significant

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Top 20 ADC suppliers and what they make Bar code Handheld Stationary Mobile declines in 2009. Handheld scanners Rank Company printers scanners scanners RFID computers dropped 22.6% from 2008 to $627.5 1 Motorola ✔ ✔ ✔ ✔ million, the second drop in a row, while 2 Zebra ✔ ✔ the market for industrial fixed scan- ✔ ✔ ✔ ✔ ners declined by 25% to $660.4 million, 3 Intermec according to Tom Wimmer, director 4 Datalogic/PSC ✔ ✔ ✔ of VDC’s AIDC and RFID practices. 5 Honeywell (HHP) ✔ ✔ ✔ Meanwhile, the market for industrial 6 SATO ✔ ✔ printers, which includes bar code print- 7 TEC ✔ ✔ ers and the RFID printer/encoder mar- 8 Psion Teklogix ✔ ✔ ket, declined by 22% to $1.6 billion. 9 SAVI ✔ While all three markets have begun ✔ ✔ to recover, Wimmer is predicting five- 10 Avery Dennison year compound annual growth rates of 11 Printronix ✔ ✔ between 5.6% (printers) to 6.1% (hand- 12 Denso Wave ✔ ✔ ✔ held scanners). 13 LXE ✔ ✔ The one bright spot was in the 2D 14 Vocollect ✔ and camera-based imaging space, which 15 Datamax-O’Neil ✔ ✔ grew by an estimated 20% last year. ✔ “What that says to me is that end users 16 Siemens are beginning to get excited by imaging 17 Casio Computer ✔ technology and the benefits it can pro- 18 Mobilecompia ✔ vide,” says Wimmer. Imaging technology 19 Bluebird Soft ✔ allows end users to capture more data 20 Unitech ✔ ✔ using 2D bar code symbology or capture Source: VDC Research Group and Modern Materials Handling images for merchandise returns, work- in-process or quality control. The total RFID market came in to track their product from the point As with the mobile computing and at roughly $3.6 billion, including an of manufacture through the point of voice spaces, there was very little busi- estimated $3 billion in the industrial sale so they know when something ness news. And, as with mobile com- and transportation space. That was up enters the supply chain and when it is puting, the most important trend is the about 7% from 2008, says Nathanson, removed,” says Nathanson. interest in multi-modal data collection. who expects the market to grow at Just as companies are combining “We continue to see new processes a compound annual growth rate of bar codes and voice to create and con- driven and controlled by bar codes being 19.5% to $7.5 billion by 2014. By the trol new processes, RFID is being used complemented by voice and RFID,” says end of 2009, many suppliers were with sensors to not only track the loca- Wimmer. “These are viable solutions in reporting full pipelines, with some tion of an item in the supply chain, but the materials handling space, and it’s backlogs in the RFID tag and tran- to monitor important environmental going to continue to grow.” sponder markets. conditions, like the temperature in the The key driver is early adopters are cold chain, and even carbon emissions RFID seeing real value from the additional for sustainability. If there was one major bright spot in data that can be placed on an RFID “Companies that made an early the ADC market last year, it was RFID. chip versus a bar code, from the vis- commitment to RFID now see it How good was business? “It’s going ibility that comes from tracking an item as a competitive advantage,” says gang-busters,” says Nathanson. “The throughout the supply chain or its life Nathanson. “They are using the down RFID industry certainly bounced back cycle, and from reductions in theft and economy as an opportunity to continue quicker than the bar code, mobile com- counter-fitting. “Apparel manufactur- to invest and get new economies over puting and printer industries.” ers, in particular, are looking to RFID their competitors.” M

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By Sara Pearson Specter, Editor at Large

ith ongoing pressures sion-critical things that get tied to drive costs out of to your process,” Liard adds. manufacturing and dis- “People are looking beyond Wtribution processes, facilities increas- labor cost reduction to overall ingly rely on a blend of data capture cost reduction—a more holis- and mobile computing technologies to tic approach.” gain better control of assets and inven- Further, “there’s been a Using a combination of tory. The application of a single solu- trend to have devices that can tion—such as RF bar code scanning, operate 24 by 7 by 365, or with diverse technologies— imagers, voice-directed picking or radio essentially no downtime,” says often in one compact frequency identification (RFID)— Tim Eusterman, senior direc- developed into a blending of technolo- tor of industry marketing for Intermec package—gives users gies embedded into a single device for (www.intermec.com). “Companies call the edge in asset maximum labor flexibility and opera- it ‘sweating the assets,’ and they’re look- tional efficiency. ing get the most utilization out of the management and Users need data capture and mobile least amount of investment in mobile operational efficiency. computing solutions that generate computing.” enhanced supply chain visibility and overall business efficiency improve- Multi-modal capabilities ments, says Mike Liard RFID prac- Feeling the pressure to run as lean as tice director at ABI Research (www. possible has companies examining abiresearch.com). “To do that, sup- every angle of their spending. pliers have become more ‘technology “Along with that, there’s a reduction agnostic,’ offering a broader range of in information technology (IT) staff automatic identification data collection and IT spend,” says Dave Peddemors, (AIDC) solutions for use in combina- vice president of North American sales tion as complementary technologies.” for Psion Teklogix (www.psionteklogix. “The technologies are used not just com). “Users upgrade because they to find assets, but also to track the mis- can’t support their old systems any-

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Wearable mobile computing devices are increasingly being enhanced with greater processing power and more memory to accommodate full color images that show a visual of the product to be picked, the correct location of a pick, or the appropriate scheme to follow in building a pallet load.

more; they may not have an IT staff simplify management of the tools, Mike Maris, senior director of transpor- person in every single location. So, Peddemors says. tation and logistics (www.motorola.com/ companies are looking at modularity A single, multi-modal device enterprise). “Especially at the docks, the and the ability to deploy one platform also offers flexibility, says Intermec’s ability for a receiving clerk to take pic- across multiple applications.” Eusterman. “Some mobile computers tures of a delivery in real time, combine In response, vendors are provid- can be used on a forklift for receiving, it with a voice recording, and send a mes- ing smaller, faster data capture and putaway and replenishment, then can sage to the buyer to confirm the accuracy mobile computing devices with multi- also be a wearable device for a voice pick- of the receipt through the mobile com- modal functionality—combining RF ing application. Or, in a receiving situa- puter is a real timesaver,” he says. scanning, imaging, RFID tag reading, tion, if a user is more comfortable with a voice-directed picking and other AIDC pistol grip, that can be attached to con- Browser-based interfaces elements into a single unit. One device vert the device to a hand held,” he says. Operators of mobile computers has one operating system, battery pack, More units are incorporating imager have become quite familiar with holsters and modular accessories to cameras as well, according to Motorola’s browser-based navigation and smart

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phones. Because of that the position of a person relative to inherent comfort level, ware- a position within a facility—with- house devices are also sport- out putting in an expensive, dedi- ing these interfaces—making cated, location-based system,” them both more accessible to Burke explains. “These solutions new users and easier to train also allow you to instantly know a employees on. vehicle location for tracking par- Additionally, warehouse cel deliveries.” management system (WMS) The systems seamlessly main- solution providers have begun tain the wireless connection, offering the ability to present enabling an appropriately equipped full color images on mobile mobile worker to complete tasks computers—showing a visual inside the warehouse and then out of the product to be picked, the in the yard. correct location of a pick, or the For even more productivity, appropriate scheme to follow- operators can be outfitted with ing in building a pallet load, to a fast-output mobile printer name a few. that wirelessly networks with To accommodate these fea- mobile computers and prints tures, “the devices have more human-readable or bar code processing power and more labels for shipping, returns or memory,” says Keith Bernhardt, store location loading. LXE’s director of product man- “If you outfit the worker with agement (www.lxe.com). “If you a mobile printer, you can really have a higher powered proces- cut down on travel time to fixed sor, you can deliver more com- printers and eliminate confusion mands faster for quicker tradi- in locating loads that are some tional picking. If the device is a distance away,” adds Intermec’s thicker client, you can’t afford Eusterman. to slow down just because you To give users the ability to deploy one platform have a few more features.” across multiple applications, mobile computing RFID’s re-emergence Look for newer devices to vendors are providing smaller, faster data capture Although still considered by also sport higher resolution devices with multimodal functionality. some to be a four-letter word, screens, says Psion Teklogix’s RFID tags and reader use is Peddemors. “Vendors are developing ring scanners on their fingers or voice- exploding as a component of data cap- high-visibility, high-resolution screens enabled headsets over their ears, that ture for asset management—includ- that represent the product very well communicate back to a computer worn ing inventory, work-in-process, parts, and allow you to get a lot of legible, on a belt. “That combination allows returnable packaging, tooling and vehi- readable data in that screen factor,” he the wearer to be really mobile, more cles, says ABI Research’s Liard. While adds. efficient, work faster and make the the trend is fueled partly by an increase operations move much more smoothly,” in the technology’s reliability and a Interconnectivity Bernhardt adds. corresponding decrease in per-tag and Bluetooth technologies continue to Also enhancing interconnectiv- reader costs, companies are evaluating be employed with mobile computing ity, says Tom Burke, vice president of RFID based on return on investment and data capture devices, says LXE’s product marketing at Datalogic Mobile and total cost of ownership. Bernhardt. “To enable the interaction (www.datalogic.com), are the location- “The value of the tagged asset is of different equipment, Bluetooth con- based service technologies that can be certainly going to come into play, but nects scanners to vehicle mounted and integrated on mobile computing and there’s also the factor of preventing the hand-held computers, so operators no data capture devices. loss of assets, or having trouble find- longer have to be tethered to a forklift,” “The combination of global position- ing these assets during mission-critical he says. ing systems (GPS) with cellular tech- times,” Liard says. “The value proposi- The technology also enables opera- nologies and Wi-Fi positioning systems tion is tied to the business process and tors to wear hands-free devices, such as opens up a lot of opportunities to know the larger efficiency picture.”

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riding on every forklift, reading them as laser scanners read a doing time studies all traditional one-dimensional bar code, day long.” says Motorola’s Maris. “The imagers are essentially cameras that take a pic- Information dense ture of the bar code and translate the bar codes dots and squares; for traceability, it’s a With growing use of technology that’s starting to find real information-dense bar purpose.” codes—such as two- dimensional (2D) ver- Computing in a cloud sions that store informa- With more WMS vendors looking to tion both horizontally offer their software as a service (SaaS— and vertically, and com- also known as cloud-based computing), pact GS1 DataBar (for- most mobile computing device manu- merly known as RSS, facturers say the effect on their tech- reduced space symbol- nologies will be negligible. ogy)—additional infor- “Most devices now have an inte- mation can be stored in grated browser and fairly high speed the mark. Application interface to the network,” says identifiers contain more Datalogic’s Burke. “SaaS requires a cer- information than ever tain functionality from your browser, With growing use of information-dense bar codes, before, such as serial and if you have an old one that hasn’t data capture devices now incorporate imagers that numbers, lot numbers been updated, you’re going to have have become as fast at reading them as laser scanners and expiration dates some compatibility issues.” read a traditional one-dimensional bar code. that yield better product It’s also important to verify that identification, quality the devices have the ability to lock Warehouses and manufacturers are control and traceability. the browser onto a single application, looking for mobile computing solutions To accommodate these bar codes, preventing users from accessing the that enable them to better manage data capture devices now incorporate Internet or control panel, as well as inventory, assets and labor, agrees Toby imagers that have become as fast at keeping the network secure. Rush, president and CEO of Rush Perhaps the biggest benefit Tracking Systems (www.rushtrack- of cloud-based computing will ingsystems.com). be the ability of a smaller level Rush’s company offers a solu- of user to take advantage of tion featuring an RFID reader warehouse automation, says mounted to the top of the lift truck LXE’s Bernhardt. “Certainly for indoor position monitoring and SaaS allows smaller deploy- real-time visibility of the truck, and ments to take place in larger an RFID reader mounted on the numbers,” he adds. front of the vehicle or on its forks For mobile computing and automatically scans the load being data capture device manufac- moved. “By taking away the hand- turers, that will likely lead to held bar code scanner and not an increased availability of making a person scan, a facility can pared down, more common gain speed and accuracy by elimi- configurations of products nating errors,” Rush explains. that don’t require as much In addition to inventory and customization. “They’re not shipping accuracy improvements, going to be looking for so users of these systems also benefit much specialization and from analyzing the data collected variety, but will still find sig- to yield better labor and fleet Location-based service technologies can be integrated nificant improvement in their management, adds Rush. “It’s like on a device, allowing companies to instantly know a operations overall,” Bernhardt having a little industrial engineer vehicle location for tracking parcel deliveries. says. M

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MMH1010InfoMgmt.indd 33 10/13/10 10:51 AM modern equipment report Carousels: Turning picking into productivity

Not just for high-density storage anymore, today’s carousels are delivering product to the person while increasing productivity, reducing labor, saving space and cutting energy costs.

By Lorie King Rogers, Associate Editor

ertical and horizontal carousels have been moving product through warehouses and distribution centers for more than 25 years. In addi- tion to creating dynamic high-density storage, carousels can be cred- ited with increasing productivity, reducing labor, saving space and Vcutting energy costs. The concept of carousel technology hasn’t changed much over the years. That might be because a carousel is a robust and dependable piece of equip- ment, and it is mechanically pretty simple, says Jack Lehr, vice president of sales for automated systems for SSI Schaefer (www.ssi-schaefer.us). What is changing is how users are applying carousel technology. “About five years ago, however, engineers in the United States started to recognize that the goods-to-person process is hands down the most efficient picking pro- cess,” says Lehr. So, if you have a picking operation, are carousels the right solution? “Any manufacturing plant, warehouse or distribution center currently using a traditional static rack and shelving system should investigate the possibility of incorporating an automated solution like a vertical or horizontal carousel,” says Christina Hilligoss, marketing and commu- nications manager for KardexRemstar (www.kardexremstar.com). And, that investigation should cover a few key areas. Paul Roy, vice president of marketing and product management for

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System Logistics (www.systemlogistics.com) rec- ommends asking: Am I currently using labor to pick from shelving? Do I have space and accuracy issues? Do I need to get orders out the door faster? If you answered “yes,” to any of those ques- tions, it might be time to consider a carousel. “Carousels can go anywhere shelving can go,” explains Hilligoss. “If you’re looking to save space, a vertical carousel might be the solution. If you’re Turning picking into looking to increase productivity, horizontal may be the way to go.” Either way, the starting point is a return on investment (ROI) estimate. “Carousels have an average ROI of about 18 months,” Hilligoss says. PRODUCTIVITY Whether your return is shorter or longer may depend on your current operations. For example, are you renting space off site to store product? High-density storage carousels not only save floor space and How many people will you be able to retrain and optimize vertical space, they bring the product to the person, which relocate? increases throughput and improves picking accuracy.

Common characteristics usually delivered in bins, totes or on shelves. These are ideal Both vertical and horizontal carousels share key components for lightweight items because anything too heavy could throw that are vital to an operation’s bottom line: off the unit’s balance. While small items work well in a verti- • They incorporate dense storage technology to house cal carousel, fragile items do not. The constant, rapid motion product and components, and carousels can save as much as 85% of the space used to store items in traditional, static shelving and rack systems. • Carousels bring products to the person performing a picking or putaway activity, and they eliminate the need for associates to walk to retrieve the items needed to fill an order. That can cut labor by up to 65%. As a rule of thumb, one carousel can do the job of five or six people in a conventional process. • Carousels require precise operator input to confirm, guide and control each function, and the result is zero-error order picking. This avoids the need to re-handle orders and assures high service levels to the customer. • Carousels are modular and flexible. Like building blocks, the units can be combined, allowing for scalability for a specific project then easily reconfigured when the project requirements change. • Carousels deliver items to the associate’s “golden zone,” which indicates the ideal ergonomic height. That area reduces the potential for injuries associated with excessive reaching and bending, a significant bonus for workers, although dif- ficult to calculate as part of an ROI analysis.

The benefits of carousels Vertical and horizontal carousels have different characteris- tics. Yet, each brings something different to the storage and order fulfillment table. A vertical carousel rotates up and down, or elliptically, bringing the right part to the right worker at the right time,

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Batch picking cuts dwell time and increases productivity. The carousels spin at different times so when the picker is ready, the product is ready.

mhia.org) AS/RS industry group. More small- to mid-sized compa- nies are opting for carousels, Cohen says. “Car dealerships, for example, are installing carousels to hold spare parts and free up floor space for more work bays, which would generate more rev- enue,” says Cohen. “The same analogy works for storing production parts or consumables near an assembly station on the manufacturing shop floor.” Take a vertical carousel, turn it on its of the carousel can easily damage deli- to reduce the amount of space used side and you have a horizontal carou- cate goods. for small parts storage and gain con- sel. These serve the same purpose, but The true beauty of a vertical car- trol of small parts inventory,” says because they take up more space, they ousel is that it combines high-density Brian Cohen, chief executive at Hanel are used more often in manufacturing storage and high-speed retrieval tech- Storage Systems (www.hanel.us) and environments and distribution centers nology in a small footprint. “Vertical also chair of the Material Handling that have space and high throughout carousels are the most effective way Industry of America (MHIA, www. and picking demands. “Horizontal carousels are ideal for split case or each picking,” says System Logistics’ Roy. “Split case picking is typi- Where will MHE provide the greatest benefit? cally best where replenishment activity is According to the Modern 2010 State of Materials Handling low, otherwise whatever you gain in pro- Survey, Modern readers are seeing a slightly rosier picture in ductivity, you lose with replenishment.” terms of equipment investment. Fifty-eight percent of respon- Roy also explains the development dents reported that they plan to increase their materials han- of the podless picking concept. “In a typical picking environment, a number dling investments over the next three years. The largest slice, of horizontal carousels are used to cre- 46%, will be invested in picking technology, which can often ate a pod and each pod has to be staffed include carousels. by a person,” he explains. “With podless picking, we may take a number of car- ousels and install then as an equal face with no defined pod. The idea is that 46% Picking we have flexible staffing so that dur- ing a slow time, one operator can do all the picking. As we get busy during the 3% Loading day or during seasonal peaks, we can staff that array of carousels with more 37% Packing 4% Recieving people. The ability to exercise dynamic, 3% Putaway flexible staffing is much greater with a 7% Replenishment podless configuration.” Carousels may also be getting a second look thanks to the interest in Source: Webcast: Modern Materials Handling Modern 2010 State of Materials Handling Survey sustainability. Vertical carousels are

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An operator picks from a pod of horizontal carousels to fill an order. The integration of efficient conveyor and sophisticated control technologies assures high stocking and picking rates. says Hanel’s Cohen, but a lot of companies are able to get back to pre-recession production rates without bringing all the people back. Since carousels enable a company to meet customer service levels and demand with fewer associates, they can enable that strategy. “Many companies have used a bad time to become more efficient. And efficiency will pay off well beyond the incorporating regenerative braking systems that can cap- return of the economy.” He added, “In a global economy we ture the power that is generated from motors and brakes have to be innovative and effective to stay in the game.” Ⅺ on the descent and put it back into the power grid. And because carousels save space, they can store more product in a smaller footprint than with conventional systems. One example is an expanded 48-inch bin. “By widening the bin, we expose more pick faces to the operator and allow them to fill the order with less movement,” says Roy. “There are more SKUs in a bin, which minimizes spin time required to retrieve parts and consumes less power.”

New software, new strategies While the basic functionality of horizontal and vertical car- ousels has not changed in recent years, advances in soft- ware and controls allow end users to make the picking pro- cess more cost effective. “We have decoupled the carousel from the picking process,” says Schaefer’s Lehr. “In a typical carousel application, a person stands and waits for the car- ousel to rotate so they can access the product. We’ve taken the picking workstation away from the carousel and con- nected it with a small conveyor system, enough to buffer the incoming product so that product is always available for the picker.” Software develops the picking sequence so there is a constant steady flow of product from the storage medium to the person doing the picking, which cuts dwell time and speeds up productivity. Productivity isn’t the only thing picking up speed. As the economy makes slow, steady progress toward recovery, the interest in carousel technology is picking up. A lot of companies suffered layoffs during the economic downturn,

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MMH1010_EquipRptCarousels.indd 37 10/13/10 9:19 AM FOCUS ON Palletizersdock equipment Cleveland NA 2010 AGVs MAKE ROOM Cabinet for lean manufacturing Floor-level palletizer with extended accumulation table Combining the economy Forand betteraccessibility workspace of a floor-level organization palletizer and with speeds associ- management, the 5S cabinet offers clear lifts feature ated with high-level machines, the 72AE palletizerCentralized incorporates andock extended power accumula - Driverless trucks withtionremovable table thatvoice steel allows handrails. continuous acrylicdirected southworth doorslayer forming for instant during picking visibility transfer and stacking.at- This feature galvanized increasesProducts, the 207-878-0700, volume to morea-glance thanwww. 35accounting units persource minute. of tools It lowersalso and includes parts building at energy-efficient costs construction electricwithsouthworthproducts.com. the motors, voice-equipped quiet operationpoint picker ofand useas pre-programmable to supportguidedTo cut lean the vehicle layer complexitiesmanufacturing patterns systems and and can pallet costs be con- conof - For safe transfer figurationsthey verbally for easyconfirm startup picks,philosophies. and and control. The The unit trolleddurablenew can loading palletize with cabinet traffic dock cases, case installations,control trays, fea- bagsnaviga- the or totes. Automatic changeover is directed by the operator touch-screen panel. For flexibility, of loads from transportsControl the dock completed environmenttures pallet metal to pegboard tionCentraPower inserts.software. Alternately, unit The reduces vehicles the come number in intelligent control accepts new or modified pallet, layer and product configurations from truck bed to dock shippingwith sliding while the softwalls nextsolid truck hinged brings doorscapacities ofwith hydraulic additional ranging pumps, peg- from disconnects 500 pounds and authorizeda new pallet personnel, to the picker.with all Duringoperating parametersto 4,000 independently pounds, making adjustable. them A -B-C without ramps PackagingCreating better Machine, environmental 800-237-5975,board control,storage www may.abcpackaging.com.associated be specified. power Stanley feeds by Vidmar, a factor 800- of or inclines, Dura- peakflexible periods, sliding pickerssoftwalls with523-9462, slide manual open or www.stanleyvidmar.com, ideal10 to for 1. Locatinghandling smaller Booth loads 2532. and Dock loading-dock palletclosed trucks with minimal can work effort in conjunctionto create sepa - increasedthe hydraulic volumes power without additional lifts are offered. withrate thezones system in loading to handle dockTreatment staging additional areas. prevents staff.source Features inmold a conve includegrowth- multiple on pallets path ™ Robot works in tight spaces, Energy-efficientMaximize storage space Theworkstation units with ProHANGERcome in throughput.…The the curtain perfect walls As requirements also improveE-fusion cleanli change, mold- anddeliversprogramming, nientmildew location 20 resistant cycles inside a retractable per minute andtowing treat- solution for storing and organizing long partsrouting and supplies. plans can be updated and pin, remote communication, and The electric workstation5,000- lift for and palletizing 6,000- offersness, increase security andment contain system odors, forDelivering woodthe building pallets speeds yieldsinhibits up to 20 the cycles growth per minute, of quiet,pound energy-efficient capacities and featureoperation. galvanized, The area additionalfumes, dust vehicles or noise. can Mademold, be ofadded heavy-dutypreventing or the product cleanerEC-171 high-speedaccess, recalls sim and -robotic refused palletizer ship- is Voice+Laserbeneathcorrosion-resistant is large driverless and base open vehiclesand for legs. easy have Risingstraddle transferredindustrial vinyl, between the units sites.ments. are Dematic,custom The fab treatment - equippedplified bonds with maintenance a withbuilt-in wood collision during detection an elec- industrialstackerfrom grade access grade level to lasertheto a platform. maximum guidance For height and easy of main -877-725-7500,ricated for each application,www.dematic.us.trostatic and can application be system.and process, Incorporatinglower costs. making The a large it ideal working for envepallets- tenance, standard 115-volt power units are rear lope with small rotation radius and energy incorporate59 inches, the voice-directed lift may be mounted picking, in a reconfigured as facility layoutused orin environfood and- beveragesystem features handling, a consumer prod- mounted for access when the lift is in the down efficiency, the robot works in tight space con- concrete pit. Platform sizes range from 6 Low-costmental control AGVs needs handle change. Mountable up to full backup pump leavingposition. operators The lifts are with offered their as hands an alternative to ucts, pharmaceuticalsstrictions and at a paperhigh rate products. of throughput. X-Mold, A 10.5- freepneumaticx 8 feetto maximize to and8 x 12hydraulic feet.case Features picking powered includepro- solutions a for4,000to the existing pounds ceiling structure,866-581-6653, a heavy- inch www.xmold.net,and color motor touch-screen system Booth to is included 625. for human ductivity.applicationsweatherproof At wherethe pushbutton start air is of not an control easily order, availablewith 20 andCapableduty track of and maneuvering trolley system and supports tow- interfaceensure control continuous (no laptop up-time. required). systems The thehydraulicfeet truck of coiled fluidsdelivers cord, cannot a a new diamond-tread, be tolerated.pallet to theA steeldvance ing the loads walls. throughoutZoneworks, a Vertical 800-553-4834,production storage systeminc., system offers 800-643-5424, onboard diagnostics, www.docksys advanced- Lifts, 800-843-3625, www.advancelifts.com. programming platform, and up to 400 different pre-programmed recipes. picker.platform Then, with itbeveled automatically toe-guards, moves and space,www.zoneworks.com. a seriesU.S. Patent Pending of low-costFeaturing automatic a stabilized temsinc.com. shelf system American-Newlong, 317-787-9421, www.american-newlong.com. with high storage density at an afford- able price, the motorized vertical pan carousel offers storage and retrieval of Longer Lasting Belts inventory with push-button control. The system delivers inventory to the opera- tor, yielding retrieval time savings up to 90%. Included standard are lifetime sealed bearings, shielded motors, secu- rity keypad, one-touch forward/reverse, wire mesh guarding and obstruction detectors. Vidir Machine, 800-210-0141, www.vidir. Better than com, Booth 3018. Lifetime Warranty Software directs, analyzes paperless picking activity Executives, managers and supervisors can easily view pick rate productivity, accuracy and throughput with z Abuse Resistant Belts work where others fail. the version 6.0 release of LP dash- z Super Strong Joints are virtually unbreakable. board. The software displays real- z High Tension Belts move heavier loads. time, updated key performance z Super Red Belts double conveyor capacity. indicators with drill-down granularity New Split Line-shaft Spools for facility, area, zone and employee-  High precision. Reasonable price. level views. Featuring a rich graphi-  Easy to install. Zero downtime. cal interface with drag-and-drop  Can be locked to shaft. Eliminates widgets for custom template views of performance data, the system offers an automatic slide-show need for keyed spools and shafts. style display of multiple, user-configured templates. 800-770-2358 614-777-0295 Lightning Pick Technologies, 262-250-2143, www. Dura-Belt Fax: 614-777-9448 www.durabelt.com lightningpick.com, Booth 1543.

385444 OJMuc lARCH t yo 2be 0 r 12010 0 2 0 / 1 Modern 0 / /MODERN Modern Materials MATERIALS Materials Handling HANDLING Handling mmh.com mmh.com 46 A PRIL 2010 / MODERN MATERIALS HANDLING mmh.com

MMH1010_FocusOn_Prod.inddMMH_1007_Products.indd 54 38 10/12/107/6/10 1:561:59 PM MMH100301ShowProds_ID.indd 44 3/10/2010 3:49:09 PM MMH100401ProdFocus_ID 46 4/8/2010 11:34:55 AM

LM MMH Template.indd 1 10/6/10 4:00 PM Safety, performance features included standard New safety and performance features have been added standard to the supplier’s line of palletizers. These include category 3 electrical circuits with dual-circuit safety interlocked door switches and light curtains at discharge. To protect personnel from moving parts, upper level guarding and a perimeter hand railing has been added to high-level palletizers. Case entry guarding on both high-level and floor-level pallet- izers is configured as a moveable tunnel or an access door. For simple addition or modification of patterns, an easy-to-operate controls package provides for adjust- ment of PLC timers and variable frequency drive speeds, plus generates production reports with enhanced alarm and troubleshooting support. Columbia Machine, 800-628-4065, www.palletizing.com.

Kawasaki robotic palletizers offered in North America Kawasaki robotic palletizers—which can palletize at rates up to 30 or cases per minute (1,800 cycles per hour)—are now offered by a designated North American system integrator. A direct coupled gearbox with AC servo motors directs the robot with absolute pulse encoders on all axes. To program a layer or pallet pattern, operators use a hand-held pendant with 6.4-inch liquid crystal color display and menu-driven interface. Features include Ethernet and RS232 ports and a collision detection system. Conveying Industries, 303-373-2035, www.conveyingindustries. com.

Accurate, gentle stacking of heavy bags PACK EXPO The Paletpac 5000 high- BOOTH capacity palletizer and #E-5208 stretch hood film packaging RPA system gently stacks and PAVILION secures bagged, bulk mate- rials on pallets. The machine stacks 5,000 bulk material bags per hour. It uses a bag flow distribution process that ensures low handling speeds and gentle handling on belt conveyors to reduce dust and prevent bag deformation. To accommodate different stacking heights, the stretch hood unit can be adjusted and includes an ultrasonic sensor to determine the film length required. A formed hood is pulled over the complete pallet stack and is stretched to the bottom edge of the pallet to secure the stack. The Beumer Group, 732-560-8222, www.beumer.com. BLUE HAS NEVER BEEN SO GREEN. Modular, low-level in-feed case palletizing Need to reduce your impact on the environment? Compact, low-level in-feed case palletizers offer modular con- The CHEP Equipment Pooling System produces less struction and provide total automatic operation at speeds up to solid waste and greenhouse gas while consuming less 280 layers per hour. To save power, an auto-shut down feature total energy than other shipping options. is included. Ideal for limited space applications, the in-feed and pallet handling systems have been separated from the main Calculate your actual savings by shipping on CHEP. frame. All electro-pneumatic operation eliminates container chep.com/naturalchoice contamination for sanitary use. Features include a heavy-duty, open frame, triple strand drag chain discharge conveyor, case pusher bar with equally distributed pressure, and PLC-controlled case orientation. For simple operator interaction, touch-screen technology gives access to system parameters. Bastian Material THE NATURAL CHOICE. Handling, 314-432-2224, www.bastiansolutions.com.

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MMH1010_FocusOn_Prod.indd 39 10/12/10 1:59 PM NA 2010

FOCUSCleveland ON Palletizers

AutomaticSystem palletizesturntable directlystretch toand two three-year stretch unlimited wrappers cycle war- engaging them by extending a wrapperThe stack and wrap palletizing/stretch wrappingranty. Wulftec/MJcell combines twoMaillis, or more 877-985- catch pin into the cart’s connection Thelines economical into a centralized, WCA-Smart automated auto- palletizing3832, stretch www.wulftec.com, wrapping station. Booth interface, then conveying them to maticThe turntable integrated stretch equipment wrapper builds the unit1209. load on the stretch wrapper for load/unload points further along combinesmore efficient two of handling the supplier’s of lightweight, previ- unstable loads in less floor space. the path. Creform, 800-839-8823, Incorporated are a robotic arm, two stretch wrappers, automatic pallet ous products into one line, www.creform.com, Booths 1734 dispenser, and conveyor system to deliver empty pallets to each stretch & 1834. wrapper. standardizingOnce a predetermined tower andnumber of cases are loaded onto the first pallet, thecarriage first wrapper for aapplies reduction film to stabilize the load layers, while the robotic arm builds a load onin thelead second stretch wrapper. The alternating Chain hoists runs 1,900 process repeats until the loadtime is completeand and product is discharged to a hours between servicing conveyor transfer system. Thefaster system can handle two different products simultaneouslyOffering for high throughput. extended service life up to Schneider Packaging Equipment,product 315-676-3035, www.schneiderequip.com; Lantech,1,900 800-866-0322, hours, the DC-Pro chain hoist www.lantech.com. delivery. AGV navigates tight spaces runs longer between service inter- The new unit offers enclosed Transporting materials through vals and general overhauls. Many carriage chains, an increase in stan- tight, narrow aisles is the Tite- components are maintenance-free dard wrap height to 80 inches, and SpaceSoftware BST AGV generates tugger, with robotic a min- palletizingfor up to 10 patterns years. Safety features imumRobotic turning palletizing radius systems—including of 17.5 inches. multi-lane include palletizers, brakes layer that pallet do not- require optional wrap heights up to 116 izers, lean palletizers, bag palletizers and vacuum palletizer grippers for inches. An ergonomically friendly Thehard low-profileto handle products—use tugger includes the ABB a Pickmasteradjustment 5 software and for clutches a stan- that pro- film loading carriage is mounted drivedard, butmotor, flexible, 24-Volt palletizing DC power solution. sup- The softwarevide protection allows the creationagainst overload on the side for easy loading. The ply,or modification and guidance of case sensors. sizes and It pallettravels patterns. and To slippage. enable palletizing The hoist of is offered in system runs at a standard 12 revolu- inmultiple a single products direction within along a single a mag-cell, configurations275 to range11,000 from pound one to capacities five with tions per minute, up to 22 optional- neticin-feeds tape and guide out-feeds. path Options at speeds include up complete two different end-of-line control automation configurations: ly, and has a spring loaded carriage towith 164 conveyors, feet per automatic minute. guidedThe vehicle vehicles anda pendantstretch wrapping. or the supplier’sQComp control Technologies, 920-757-0775, www.qcomptech.com. gate, split base for easy handling, glides under stationary pushcarts, pendant for one-handed operation. Demag Cranes & Components, 800-321-6560 www.demag- us.com, Booth 2618. Collect data in harsh environments The MX9, MX9CS, and MX9HL ultra- rugged handheld computers offer data collection with an outdoor display with Modular,multiple scanning low-level Motorized Storage & Retrieval palletizerand imaging handles options. multiple packSelections patterns, include pallet types Solutions Capableback-lit ofkeypads, accommodating multiple packbuilt-in patterns, GPS position-plant layouts and pallet types, the heavy-duty, medium speed Space Saving VerƟ cal Storage LLPal location low-level, feature, in-feed palletizer handles moreand 802.11than 20 a/b/g,cases per minute. Offered • Bar Stock • Spooled Products • Tire Storage inWWAN either right- and Bluetoothor left-hand communica- parallel • Print Cylinders • Rolled Goods • Parts Storage infeedtions. configurations,The MX9 computer the modular includes unit canan IP67interface rating with and side rugged load or packag-end load palleting. With dispensers. low-temp A user-friendly batteries humanand “Storage & Retrieval Solutions Since 1986” machinebuilt-in interfaceheater control, allows programming the MX9CS of additional pack patterns without field service.is ideal For for safety, cold storagea framed use. guard The door Contact Us Toll Free at 1-800-210-0141 package,MX9HL compliessafety circuits with and Class muting 1 Div. light2 hazardous curtains are location included. environments. Currie by or visit us online at www.vidir.com Brenton,LXE, 800-664-4593, 800-535-2730, www.lxe. www.brenton- engineering.com.com, Booth 1432.

42 M ARCH 2010 / MODERN MATERIALS HANDLING mmh.com 40 O c t o b e r 2 0 1 0 / Modern Materials Handling mmh.com

MMH100301ShowProds_ID.indd 42 3/10/2010 3:42:18 PM MMH1010_FocusOn_Prod.indd 40 10/12/10 1:59 PM Palletize 108 cases onto two full pallets per minute Constructed entirely of stainless steel, the case palletizing system handles plastic and wood pallets. The system palletizes two pallets per minute, each holding nine stacks of cases stacked six high, or 54 cases per pallet. Ideal for wash-down use, the system includes an electric-powered pallet dispenser and an empty pal- let pusher that transfers pallets into the stack loading zone under the transfer plate. The hydraulic palletizing unit features an in-feed conveyor with stack stop pan style drive, in-feed stack transfer pusher with load zone transfer plate, and full pallet loading. The system is protected by a safety fence with light curtains. Westfalia Deam Systems, 800-673-2522, www.westfaliausa.com.

Robotic arm retrofit creates hybrid palletizer Alvey robotic arm retrofits for existing in-line case palletizers create a hybrid palletizer that combines flexibility and repeatability with the speed and reliability of conven- tional layer deposition. The solution yields gentler positioning and rotation of product, automatic line changeovers, pattern changing flexibility, and extended life at a lower cost than a new installation. Completed on-site, the retrofit removes the slat divider and existing case turners and replaces them with one or more robotic arms for pattern forming. Also included are end-of-arm tooling, operator interface terminal screens, in- feed conveyor and PLC programming. With quick product reconfiguration and instant line changeovers, systems achieve packaging rates of more than 100 cases per minute. Intelligrated, 513-881-5239, www.intelligrated.com.

Palletizer delivers product changeover in less than 60 seconds The master 3500 high-level palletizer features a servo- PACK EXPO controlled layer pusher BOOTH and pallet lift motors, # advanced machine diagnos- E-5208 RPA tics, and a totally integrated Allen-Bradley control architecture. PAVILION The machine is economical and reliable, and it also includes enhanced ergonomics for ease of use. Recipe-driven product changeover can be accomplished in less than 1 minute. Thiele Technologies, 612-782-1200, www.thieletech.com.

Hybrid robot palletizer for bags, cases and trays RoboTier palletizers integrate a Fanuc M-710 robot for pick and place BLUE HAS NEVER BEEN SO EASY. operations onto a standard layer-conditioning apron. Saving time. Saving money. The unit supports product Innovative solutions from CHEP help you do both. from the bottom, allowing See how tools like our online portal Portfolio+Plus high-speed robot motion and handling security. Loose spread can streamline your administrative activities. placement on the apron increases robot speed and accom- modates greater product variability. Once a layer is completed, chep.com/simplechoice four-sided clamps center the layer on the pallet, preparing the load for optional concurrent stretch wrapping. For easy cre- ation of new patterns without PLC or robot programming, load building software is included and accessed with a touch-screen control. TopTier, 503-353-7388, www.toptier.com. THE SIMPLE CHOICE.

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MMH1010_FocusOn_Prod.indd 41 10/12/10 2:00 PM Warehouse & DC/ Special Supplement ADVANCED SITE SELECTION Petco strengthens the network

“We eliminated materials handling inefficiencies associated with using third- party warehousing, and we have a better cost structure across the network than we did before Braselton.”

– Mike Fernstrom, director of DC operations

Getty Images/Gary Payne

42S O c t o b e r 2 0 1 0 / Modern Materials Handling mmh.com

MMH1010WDC_supplement.indd 42 10/13/10 9:40 AM With its new DC and materials handling system, the pet retailer has reduced its handling costs, bolstered its green transportation initiatives, and strengthened its overall distribution network—all while providing room to grow.

The new 506,000 square foot distribution center in Braselton, Ga.

By Bob Trebilcock, Executive Editor

ith more than 76 stores in 13 states in the Southeastern Second, locating the new distribu- million cats, 62 mil- and Southwestern United States. tion center in the Southeast delivered lion dogs, and 9 mil- According to Mike Fernstrom, direc- a couple additional strategic logistics lion aquarium own- tor of DC operations, the new Southeast benefits. During 2008, the year the ers, Americans love location, coupled with the capabilities facility went live, Petco drivers trav- pets.W Over the past 45 years, Petco of the new system, has allowed Petco eled 900,000 fewer miles, saving Animal Supplies has built a national to reduce its handling costs, bolster its 135,000 gallons of diesel, furthering brand as the place where pets and green transportation initiatives, and the retailer’s “going green” initiative. their owners go, helping more animals strengthen its overall distribution net- And by being closer to the markets to live long and happy lives. Today, the work—all while providing room to grow. it serves, the project drove further San Diego-based retailer has a foot- First, the DC’s new system is flexible transportation efficiencies because print in all 50 states, with more than enough to handle a variety of products— Petco was no able to convert over-the- 1,000 stores and a growing e-com- everything from accessories that fit eas- road truck routes to southern Florida merce business. ily into a and can be automatically and Texas to intermodal. To support the company’s growth, conveyed and sorted to non-conveyables “Not only have we reduced our cost Petco partnered with a supplier like pallets of dog food, animal per case, but the cost to operate our Feature photos by Dan Watts (TGW Systems, www.tgwsystems. and furniture. It can also process an overall network has gone down as a com) to design and implement the estimated 5 million units per month for direct result of the capacity we added in materials handling system in its new store replenishment as well as direct-to- Braselton,” says Fernstrom. “We elimi- 506,000-square-foot distribution cen- consumer orders from a 70,000-square- nated materials handling inefficiencies ter in Braselton, Ga. The facility, which foot area dedicated to piece picking for associated with using third-party ware- went live in June 2008, services 237 dot.com fulfillment. housing, and we have a better cost

mmh.com Modern Materials Handling / O c t o b e r 2 0 1 0 43S

MMH1010WDC_supplement.indd 43 10/13/10 9:40 AM Warehouse & DC

structure across the network than we did before Braselton.”

Adding capacity According to Fernstrom, Petco’s con- tinued growth was the driving factor behind the new distribution center. The retailer currently operates a net- work of 10 distribution centers. Along with the new Braselton DC, Petco has three other full assortment distribution centers, including Monroe, N.J.; Joliet, Ill.; and a West Coast operation. The remaining regional facilities are Petco installed break pack, or split case, picking modules and picking smaller in size, ranging from 50,000 to methodologies, like ring scanning, to build store-ready mixed SKU pallets 90,000 square feet, are located close to by stocking zones in a store. the markets they serve, and stock fast- moving items like pet food and cat study and concluded that it needed a shelf,” says Fernstrom. “With the new for quick replenishment. full assortment DC in the Southeast. system, we can pack totes and build Prior to building the facility in Bra- Beyond getting a footprint in Georgia pallets with products that are specific selton, stores in the Southeast and that would optimize the network, Petco to a zone or departments in a store. Southwest were serviced by the New had several goals for the new facility. That saves a lot of time on the other Jersey and Illinois facilities. All three One was to leverage the invest- end.” full assortment DCs were filling dot. ment in materials handling automation A final objective was to optimize com orders as well. “As our business and get volume out of the building by Petco’s transportation network. By grew, we ran out of space,” says Fern- moving the growing dot.com business being closer to the stores it serves than strom. “To keep up with growth, we to Georgia. “We were doing direct-to- New Jersey and Illinois, the retailer was were using public warehousing for our consumer order fulfillment from all able to shave thousands of miles from year-round surplus storage and 3PLs three of our full assortment DCs,” says its delivery routes. The transportation for seasonal business.” Fernstrom. “We decided to consolidate department was even able to save more That was inefficient and expensive. that business in the new facility, and miles by converting some truck deliver- In 2007, Petco conducted a network operate Joliet as a contingency opera- ies to rail. tion in case Braselton has a maintenance issue.” Bringing integration Another key require- to the table ment was to install break One of the challenges of the new facility pack, or split case, pick- was the aggressive timeline for the proj- ing modules and picking ect. The design process began in Octo- methodologies to build ber of 2007, the implementation began store-ready mixed SKU in April 2008, with the first receipts pallets configured bycoming in July and the first deliveries stocking zones within the leaving the buildings in August. stores they were going to “Once we made the decision to build be delivered to. “We did a facility that would take us into the not have pick modules in next generation, we wanted to get the our other buildings, so the capacity online before the next holiday totes had a mix of prod- season,” says Fernstrom. “We were han- ucts that had to be sorted dling product multiple times, either in in the store before the external buildings or because we had product could go on the to consolidate our reserve storage on a

The new location in Georgia is closer to markets in the Southeast and Southwest, saving 900,000 transportation miles a year.

44S O c t o b e r 2 0 1 0 / Modern Materials Handling mmh.com

MMH1010WDC_supplement.indd 44 10/13/10 9:40 AM Interlake Mecalux is a global leader in the storage rack in North America. We use the highest quality raw systems market. In March 2009, Mecalux formalized the materials, which are certified to meet our stringent asset acquisition of the companies UFC Interlake Holding specifications. All weld operations are controlled through Company, United Fixtures Company Inc, and Interlake Mate- advanced robotics or performed by welders certified to AWS rial Handling Inc. The US operation expanded to six produc- Standards. We then use a combination of powder coating tion plants which allow the unified company, now known as and Cataphoresis paint systems to ensure an aesthetically Interlake Mecalux Inc., to effectively cover the entire US and pleasing, durable finish. The result: the highest quality Canadian territories. products in the industry.

As one of the leading manufacturers, Interlake Mecalux The primary markets served by Interlake Mecalux products offers its customers the broadest array of storage products and services include companies which operate full-scale in the world. Along with examining customer needs from distribution centers, warehouses of all sizes, manufacturing every angle and designing a system that is efficient, facilities, and archive and record storage environments. Our cost-effective, and built to last, Interlake Mecalux provides a growth and development is based on the expansion of the comprehensive, turn-key answer to today’s complex sales distribution networks, investment in Research & Devel- material handling and logistics needs. Backed by an opment, and our automated warehouse division. Since our impressive suite of products and services offerings, Interlake foundation more than 40 years ago, our approach has been Mecalux is stronger than ever and dedicated to exceeding an unyielding commitment to quality, innovation, and customers’ expectations by anticipating their needs and customer satisfaction. delivering unmatched solutions and service.

With more than 1.5 million square feet of production space, Interlake Mecalux is by far the largest supplier of storage

Serving North America from seven strategetic locations: Chicago, Sumter, Tijuana, Matamoros, Dallas, San Diego, Pontiac Tel: 877.632.2589 | www.interlakemecalux.com | Email: [email protected]

MMH1010_Ads.indd 45 10/12/10 10:53 AM Warehouse & DC/ Special Supplement ADVANCED SITE SELECTION

daily basis just to make room. We had manager for TGW’s integrated systems pick modules use voice technology to to get this done.” group. With just three 15-horsepower work in a hands free/eyes free environ- According to Fernstrom, that’s where motors required to drive the system, ment. RF directs some of the picking in the system supplier played a vital role. the sorter is also 30% more energy effi- the dot.com area. Although Petco was responsible for the cient than a sliding shoe sorter with To keep the system up and running, overall design of the facility, he says its comparable throughput. the system supplier provides ongoing system provider was a strong partner Another key feature is a cartoniza- software maintenance for the conveyor throughout that process. The supplier tion function within the warehouse con- and pick-to-light systems. “Our techni- was also responsible for manufacturing trol system (WCS). The WCS profiles cians can dial into the system for 24/7 the conveyor, racking, mezzanines and orders to determine how many cartons support,” says Pace. sortation equipment and integrating will be required to complete each order. the warehouse control system and pick- A zone skipping feature allows the How it works ing technologies. facility to route a tote anywhere in the The Braselton facility brings together A key component to the overall break pack piece picking modules to a variety of technologies that minimize design was the narrow belt sorter that make sure that the right SKUs are picked handling and reduce costs, starting at can sort 120 cartons per minute with to a tote to meet the goal for store-ready the receiving dock. an extremely mixed product size. The totes and pallets. “That functionality was There, Petco receives against a pur- sorter is 600 feet long with 18 diverts. absolutely the right thing to do in order chase order. Full pallets of a single SKU, With its modular design, the sorter to meet that goal,” says Fernstrom. like dog food, are ready for putaway once will allow Petco to easily add new Finally, Petco took advantage of a UPC barcode has been scanned and divert lanes in the future as business a variety of picking technologies, all validated. An overseas shipping con- expands. directed by the facility’s warehouse tainer, on the other hand, may have “The narrow belt sorter gave us slid- management system. Piece picking in product from several dozen POs and ing shoe capabilities, but with a faster the three-level break pack mezzanine, may contain hundreds of SKUs. Those implementation time and a much for instance, is directed by pick-to- products will be sorted and palletized lower cost,” says Russell Pace, sales light. Associates in the three full-case by SKU. The WMS will then create

Petco’s Braselton, Ga. DC: System snapshot

the 506,000-square-foot braselton distribution center brought Three full case pick modules together an innovative design and energy saving automated In total, the full case pick module area features 1,584 static materials handling equipment from TGW Systems to handle locations and 1,584 pallet flow locations, for a total of 3,168 store replenishment in the Southeastern United States as well full case locations. The system supports throughput of 1,800 as direct-to-consumer dot.com fulfillment. cases per hour per module, or a total of 5,400 cases per hour. The facility manages an estimated 13,000 SKUs and handles • 88 bays per level an estimated 5 million units per month. Features of the system • 3 levels high include: • 2 pallet positions per bay • 6 static positions per bay on the floor level only Break pack piece pick module The break pack system is served by a conveyor system Shipping sorter designed to route totes to active pick zones at a rate of 1,500 The induction, scanning and sortation system supports totes per hour. throughput of up to 120 cartons per minute/7,200 per hour. • Automated merge of 4 module accumulation lines 24 pick zones and a sorter recirculation line • 8 zones per level • 16 dedicated shipping lanes • 3 levels high • 1 dot.com sort lane • 1 exceptions lane 12 carton flow bays per pick zone • 4 shelf levels per bay Dot.com • 6 SKUs per shelf level The 70,000-square-foot dot.com area supports Petco’s 2 static shelving units per pick zone growing direct-to-consumer business and features: • 5 shelf levels per unit • 8 sort lanes with a put-to-order pack out system • 6 SKUs per shelf level • dunnage and taping area • parcel scale and manifesting

46S O c t o b e r 2 0 1 0 / Modern Materials Handling mmh.com

MMH1010WDC_supplement.indd 46 10/13/10 9:40 AM View Our New Interactive Ad in MODERN’s Digital Edition

MM1006MMH1010_Ads.indd ppxx Dehnco.indd 47 1 10/12/106/9/10 12:1210:53 PMAM Warehouse & DC/ Special Supplement ADVANCED SITE SELECTION

stretch wrapper, where they are wrapped and staged for delivery. Items for dot.com orders are picked in a break pack module and are then conveyed and sorted to a pack station for direct-to-con- sumer orders. There, multi-line orders are packed together into a single . Dun- nage is added and the cartons are taped shut for shipment. Dot.com orders may also include items from the full case area, as well as non-conveyables like pet food, animal and furniture. Those are delivered to the shipping area where they are manifested with the appropriate shipping paper and are shipped out.

Fine tuning One year after the system went live, the system provider per- formed a facility assessment to A high-speed conveyor and narrow belt shipping sorter handles 120 cartons per insure that the system was meet- minute with mixed sized products. ing its goals. The result: Petco discovered that some new prod- a license plate bar code that is In the break pack picking modules, ucts weren’t within the original applied to a pallet and scanned. the associate starts the picking process design specifications. Lift truck operators are directed by applying and scanning a label on a Instead of being read by the by the WMS to store pallets in single tote. The pick-to-light system identi- bar code scanner, they were being deep pallet rack. The WMS also directs fies the items and quantities for each diverted as misreads to a quality replenishment. Full case modules with pick in that associate’s area. Once the check station where they were manu- two-deep pallet rack are replenished by picks have been completed for that ally audited. The system supplier a reach truck operator, while break pack tote, it’s placed on a takeaway conveyor installed new photo eyes to pick up modules are replenished from a man- and routed to the next pick zone. After the new products. In addition, Petco aboard truck. Orders for store replenish- the final pick, the tote is closed and worked with the provider to reduce ment drop from an order management conveyed to an induction point for the the number of pallet sizes it was han- system into the WMS. The system then sorter. dling from three to two to drive fur- creates waves of orders to be picked for After the label is scanned, the tote is ther efficiencies. a group of stores for that day. sorted to the right shipping lane, where Approaching the two-year anniver- In the full case pick zone, an asso- it will be palletized, stretch-wrapped sary of going live, Fernstrom says the ciate receives a stack of labels that are and staged for delivery. system has been a success. “We have sorted in bin sequence. The associate Non-conveyables are picked by been able to sort totes by the stock- applies a label to cases as they’re picked order selectors using pallet jacks with ing zone in the store from day one,” he and then places the cases on the take- 96-inch forks. Wearing voice headsets, says. “Since then, we’ve implemented away belt conveyor. After the bar code is they are directed to a pick location that same process in our other DCs and automatically read at the sorter induc- and told by the system how many pal- are able to do that across the company.” tion point, a carton is diverted to a ship- lets to pick. They confirm the pick by Most important of all, Petco is bring- ping lane. There it will be palletized, speaking a check digit into their head- ing down its handling costs while pro- stretch-wrapped and staged for delivery. set. Pallets are then delivered to the viding room to grow. M

48S O c t o b e r 2 0 1 0 / Modern Materials Handling mmh.com

MMH1010WDC_supplement.indd 48 10/13/10 9:40 AM Job#9015 General Modern Material Handling MHIA/ProMat API#78647 10/10

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Arthur “Mac” Barrett, Jr. Inventor of the “Guide-O-Matic” Mac Barrett, credited as the father of the automatic guided vehicle (AGV), passed away in August at the age of 89. Modern talked to his daughter, Joan Barrett Kellogg, about her father and the develop- ment of the “Guide-O-Matic,” the first wire-guided AGV. One of the original Guide-O-Matic vehicles can still be seen in Grand Rapids, Mich.,

Photograph coutesy of Barrett family at the offices of Savant Automation The Barrett family at the ground breaking (www.agvsystems.com), the succes- for the plant that built AGVs in Northbrook, sor to Barrett Electronics. Ill. From the left, Joan Barrett Kellogg, Mac Barrett, and his parents Mrs. and Mr. Arthur M. Barrett, Sr.

Modern: Do you remember the trucks. (Note: The lift truck business Modern: I’ve heard your father development of the Guide-O- was subsequently sold and today is invented an automated lawn Matic? part of Nissan Forklift in Marengo, mower? Ill.) My father was much the same Kellogg: I do. The vehicle was Kellogg: He called it the Mowbot. way. He was an engineer and he patented in 1958, but he was working We lived in the country and had a lot was naturally interested in making on it as early as 1956. As a very of acreage. He put a huge antenna things work better. He once told young girl, I spent my Saturdays at that could receive a remote control my mother that if a new maid didn’t the plant as the other half of the signal on our gang mower. He’d work out, he could replace her with R&D team. It began as a remote- come home from work and say: I a robot, and he meant it. controlled vehicle, guided by wires think I’ll mow the lawn. Then he’d sit overhead. Later, he put the wire down on the porch, push a button Modern: Do you know what led him guides in the floor. and read the newspaper. It was just to invent the AGV? for fun. I think one of our neighbors Modern: Tell us a little about your Kellogg: The original Guide-O-Matic got concerned and called the police. father. was an attempt to automate some of the processes in my grandfather’s Modern: Did your father think of Kellogg: He came from a family of bindery. It didn’t make sense to my himself as a pioneer? tinkerers. His father owned a book father to have 10 lift truck operators bindery in Chicago. If he saw a Kellogg: I doubt it. But, he did have for 10 machines when you could piece of equipment, he would try a passion for the industry and a program one machine to pull a to improve on it. That led him to passion for innovation. He saw them series of carts and stop automatically start Barrett-Cravens to build pallet as improving the quality of life. Ⅺ wherever you needed the carts.

50 O CTOBER 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com

MMH1010_60Seconds.indd 50 10/13/10 10:52 AM classified/recruitment

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The rack’s beam L O G I S T E R R A , I N C. chromate-coated end connectors feature four prongs 6190-K Fairmount Ave San Diego CA 92120 steel axles that are free-floating to to create a tighter connection with mmh100401_clsBusiness 2 Staff 800-338-8759 or 619-280-9992 prevent binding for durable, 4/6/2010smooth 12:14:52 more PM surface area between the beam Executive Offices Sales Offices info@œ}ˆÃÌiÀÀ>°Vœ“ÊUÊÜÜÜ°œ}ˆÃÌiÀÀ>°Vœ“AR, AZ, CA, CO, ID, LA, MS, MT, Web Operations Magazine subscriptions 111 Speen Street CT, DE, FL, MA, MD, ME, MI, NV, OK, OR, TX, UT, VA, WA, WY, Clive Purchaseoperation. TheStar heavy-dutyt, renew or update tracksyour FREE and the upright post. 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MMH1010_Classified.indd 3 10/12/10 3:46 PM 46 M ARCH 2010 / MODERN MATERIALS HANDLING mmh.com

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