Acusport Corp. Automation That's Right on Target 16

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING EBRAT EL ING C

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YEARS

April 2015 AcuSport Corp. Automation that’s right on target 16

SPECIAL REPORT Top 20 systems suppliers 24 2015 WAREHOUSE/DC EQUIPMENT SURVEY Smarter funding for the future 28 BEST PRACTICES 7 ways 3PLs support warehouses and DCs 34 INFORMATION MANAGEMENT Flexible finance for your fleet 38

Mary Grim, vice president of operations, AcuSport We Optimize Your Supply Chain

Dematic Introduces . . . Automated Mixed Case Palletizing (AMCAP)

Dematic introduces AMCAP, a modular, flexible and scalable mixed case palletizing solution. This high- performance palletizing system is designed to assemble pallets that are ready for fast and easy shelf restocking at the retail store. Palletizing a multitude of SKUs and packaged items per hour, AMCAP efficiently builds store sequenced, aisle ready outbound order shipping pallets.

The scalable design fits into a compact footprint, up to 50% less than other competitive solutions, and is easily integrated into existing or newly constructed facilities. In combination with the small footprint, AMCAP delivers the lowest cost per case, increased order picking accuracy and product quality, and a compelling return on investment. Maximize space, asset and labor utilization.

Learn more about AMCAP today, visit www.dematic.com or contact us at [email protected] or 1-877-725-7500. UP FRONT BREAKING NEWS YOU SHOULD KNOW

Regal Beloit acquires Emerson’s Power Transmission Solutions business REGAL BELOIT CORP. has acquired the Power PTS manufactures, sells and services bear- Transmission Solutions business (PTS) of Emerson ings, couplings, gearing, drive components Electric for approximately $1.4 billion. and conveyor systems under industry leading “PTS will broaden our portfolio, diversify brands that include Browning, Jaure, Kop- our end-market exposure and strengthen our Flex, McGill, Morse, Rollway, Sealmaster global footprint,” said chairman and CEO Mark and System Plast. With annual revenues of Gliebe. “PTS brings complementary products and approximately $600 million, PTS has more well-known brands, but more importantly a very than 3,000 employees around the world. PTS talented team who are experts in their markets as will become part of Regal’s newly defined well as very strong operators.” Power Transmission segment.

I.D. Systems to develop vehicle MSSC contributes to workforce management system deployed skills certification goals by Toyota THE MANUFACTURING INSTITUTE has announced that its I.D. SYSTEMS HAS ENTERED A strategic partnership to partners have already issued 419,528 certifications, putting develop and deploy a new vehicle management system the institute’s Skills Certification System on track to beat (VMS) under industrial equipment manufacturer Toyota the original five-year goal by well more than a year. In June Material Handling U.S.A. 2011, President Obama endorsed the institute’s five-year Toyota’s Command VMS will be powered by goal of 500,000 industry certifications issued within its I.D. Systems’ patented wireless technology Skills Certification System. and cloud-hosted in a secure data center, “This achievement is eloquent testimony to the value said Kenneth Ehrman, I.D. Systems’ chair- of industry-recognized, nationally portable certifications man and CEO. “The system’s on-vehicle as the solution to the skills gap challenge facing manufac- hardware will be a custom version of our turers nationwide,” said Leo Reddy, chairman and CEO fourth-generation VAC4 hardware platform, of the Manufacturing Skill Standards Council (MSSC). leveraging either existing Wi-Fi or stand- “These stackable certifications, endorsed by the National alone VHF/cellular for implementation with Association of Manufacturers, offer a promising career path- minimal IT involvement.” way for millions of Americans to enter rewarding careers in A wireless VMS improves workplace safety and security advanced manufacturing.” by restricting vehicle access to authorized operators. It Within the Skills Certification System, MSSC focuses provides electronic vehicle inspection checklists, senses on the industry-wide core technical competencies for impacts and reduces costs by scheduling maintenance front-line work, which constitutes more than 70% of the according to actual usage. jobs in manufacturing and logistics.

PMMI and Koelnmesse join forces for new processing/packaging show PMMI, PRODUCER OF the Pack Expo portfolio ing,” said Charles D. Yuska, of trade shows, has entered into an agreement president and CEO of PMMI. to co-produce a new U.S.-based trade show with “With shows dating back Koelnmesse GmbH, the leading producer of nearly 100 years, the experi- nutrition-related trade fairs in Europe and Asia. ence and recognition that Koelnmesse’s trade fairs include the Cologne- Koelnmesse and Anuga bring based Anuga FoodTec, the international supplier to the table, particularly in fair for the food and beverage industry. The new Europe, is invaluable.” event will focus on processing and packaging tech- The new show, which will nologies serving the food and beverage launch in spring 2017, will marketplace. provide an opportunity for manufacturers in this “Koelnmesse, and its Anuga FoodTec show, arena to discover the solutions that will help them are world leaders in food and beverage process- grow their businesses. mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 3 100% GEARLESS. 100% PEERLESS.

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® PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,

WAREHOUSING AND MANUFACTURING EBRAT EL ING C

Mary Grim, YEARS vice president of operations, AcuSport

PHOTO: CHRIS CONE/GETTY IMAGES COVER STORY SYSTEM REPORT 60 seconds with... Jeff Burnstein 16 AcuSport Corp.: Automation that’s right on target A goods-to-person picking solution moved AcuSport from conventional to automated DC processes. The result is lower fulfillment costs and better customer service. DEPARTMENTS & COLUMNS 22 AcuSport moves from conventional 3/ Upfront 7/ This month in Modern to automated 12/ Lift Truck Tips: Maintenance FEATURES 14/ Packaging Corner: Pallets 48/ Supplement: Warehousing/DCs SPECIAL REPORT 24 Top 20 systems suppliers 56/ Focus On: Tuggers, carts, casters Building on their success in 2013, the Top 20 sustained growth in 2014 61/ Product Showcase and are on track for continued improvement this year. 66/ 60 seconds with...

2015 WAREHOUSE/DC EQUIPMENT SURVEY 28 Smarter funding for the future NEWS Though often characterized by feast or famine, this year’s view into 9/ ProMat 2015: It’s all about the warehouse and distribution center spending plans instead strengthens software... again a pattern of deliberate investment. 10/ ProMat reflects industry confidence BEST PRACTICES 10/ Conveyor systems market to post 34 7 ways 3PLs support warehousing steady growth until 2020 and distribution 10/ Grant Thorton: U.S. businesses show Initially focused on the transportation component of the supply chain, little progress in advancing women the modern day 3PL offers a range of services to support warehousing during the past decade and distribution.

INFORMATION MANAGEMENT 34 Flexible finance for your fleet Fleet costs don’t stop at the purchase price, and expanded Modern Materials Handling® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite collaboration between fleet managers, dealers and finance partners is 200, Framingham, MA 01701. Annual subscription rates for non-qualiﬁ ed changing the way fleet costs are managed over time. subscribers: USA $119, Canada $159, Other International $249. Single copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 PRODUCTIVITY SOLUTIONS USA. Periodicals postage paid at Framingham, MA and additional mail- ing ofﬁ ces. POSTMASTER: Send address changes to: Modern 44 Fans transform humid Nashville warehouse Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in Temporary insulated wall solves problem whole or part without written permis- 45 sion of the publisher is prohibited. Multi-facility deployment addresses lighting All rights reserved. ©2015 Peerless 46 Media, LLC. 47 Lighting targets maintenance costs mmh.com MODERN MATERIALS HANDLING / A PRIL 2 0 1 5 5 Lift up Savings. Lower Costs.

Here’s what electric forklifts carry into your facility: 40% lower maintenance costs; up to 80% lower fuel costs; 30% longer life than internal combustion vehicles; better air quality; smoother handling; less noise pollution; even less downtime, thanks to fewer moving parts.

All of this adds up to $1 or more per hour savings in operating cost for each vehicle. Why would you use anything else? To learn more about electric handling, call the Business Call Center at 1-888-655-5888.

Learn all about electric transportation and more at our new Customer Resource Center. Visit georgiapower.com/crc or call 770.216.1400.

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

Michael Levans Group Editorial dirEctor [email protected]

Bob Trebilcock ExEcutivE Editor [email protected] ProMat 2015: Industry on a roll Noël P. Bodenburg ExEcutivE ManaGinG Editor [email protected] o come back from ProMat 2015 and shows that the top players gained even more Josh Bond simply say the mood was “upbeat” strength in 2014 and are on track for contin- associatE Editor [email protected] would be an understatement of sub- ued improvement this year. “Collective growth Tstantial proportions. across the list saw a gain of nearly 3% over Sara Pearson Specter Editor at larGE When the event hit full stride on Tues- 2013, but the combined value of the list is on [email protected] day afternoon, March 24, I found myself a meteoric climb,” says associate editor Josh

Roberto Michel stopped cold in my tracks—there was no Bond, who put this year’s list together. Editor at larGE place to move. The aisle in front of me and And as a result of so many projects and [email protected] behind me was full of attendees, some commitments being put in place over the Jeff Berman talking in bunches with exhibitors, others last two years, the Top 20 growth numbers Group nEws Editor [email protected] just trying to get to their next booth visit or will only continue to climb, especially as catch up with an old colleague. more small- to mid-market organizations take Mike Roach There was a palpable buzz in the air that the plunge and embrace automation to stay crEativE dirEctor [email protected] I hadn’t heard or felt in many years at an ahead of today’s fulfillment complexities. industry trade show, and it was hard not “This month’s System Report on AcuSport’s Wendy DelCampo art dirEctor to crack a smile while I patiently waited to Bellefontaine, Ohio, facility is a perfect ex- [email protected] break out of the crowd. “I haven’t been to ample of where we’re seeing goods-to-person Daniel Guidera a ProMat in 10 years,” said a voice in the automation filtering down to the mid-market illustration pack. “Can you believe this?” and supporting that Top 20 growth,” says [email protected] And as I broke away and continued my executive editor Bob Trebilcock. “In this case,

Brian Ceraolo exhibitor discussions, the vast majority AcuSport went from a fairly conventional prEsidEnt and Group publishEr revolved around the idea that not only was process to new levels of automation that used [email protected] this the most “upbeat” ProMat they’ve been to be out of their reach. Now, we’re seeing pEErlEss MEdia, llc to, but the most productive event they could more companies their size embracing these www.peerlessmedia.com ever remember in terms of small- to mid- technologies and changing the internal culture

Kenneth Moyes market attendees coming to the table with to support the change.” prEsidEnt and cEo smart projects being funded by real money. But I believe some of the most encourag- Eh publishinG, inc. The spending data trickling in over the ing recent data supporting the buzz comes past month certainly supports why there out of Modern’s 2015 Warehouse/DC Equip- MAGAZINE SUBSCRIPTIONS Start, renew or update your FREE were so many smiles in Chicago. MHI’s recent ment Survey that Bond neatly summarizes on magazine subscription at www.mmh.com/subscribe. economic sentiment survey found that 2014 page 28. “In terms of investment, we found Contact customer service at: Web: www.mmh.com/subscribe “finished strong” in terms of sales of equip- that Modern readers are done with the stop- Email: [email protected] ment, systems and software, and about 45% gap fixes as well as the desperate ‘Hail Mary’ Phone: 1-800-598-6067 Mail: Peerless Media of their member companies say they expect attempts to make the most of resources P.O. Box 1496 Framingham, MA 01701 new orders to grow by 10% to 20% in 2015. when they can get them. Instead, they’ve Even better news, those members are certain chosen the middle ground of steadily invest- For reprints and licensing please contact Nick Iademarco at Wright’s that staffing will grow to keep pace with those ing in targeted solutions that position them Media, 877-652-5295, ext. 102 or [email protected]. sales—especially in aftermarket sales support. for efficiency, productivity and growth.”

ENEWSLETTER SUBSCRIPTIONS To further add to the buzz, our Top 20 It sounds like we’ve come out of the Sign up or manage your FREE eNewsletter subscriptions at Systems Suppliers by revenue list (page 24) recession a little stronger and a lot wiser. www.mmh.com/enewsletters.

Official Publication of Member Member of Winner Jesse H. Neal Certificates of Merit for Journalistic Excellence www.peerlessmedia.com mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 7

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SHOW NOTES ProMat 2015: It’s all about the software…again CONVEYORS, SHUTTLES AND ROBOTS WERE ON DISPLAY, did exactly what it was supposed to BUT AS WITH LAST YEAR’S MODEX, SOFTWARE IS WHERE THE do. The problem, he explained, is that the system was designed and ACTION IS IN TODAY’S MATERIALS HANDLING INDUSTRY. installed to handle the number of SKUs and throughput going through BY BOB TREBILCOCK, EXECUTIVE EDITOR the facility at the time. Since then, requirements had changed and the AT LAST YEAR’S MODEX, I wrote president of operations for a leading system couldn’t keep up: “We have that “it’s all about the software.” food processor. I asked him about a to tweak the software,” he told me. I may sound a little like a broken pallet handling automated storage What, then, are our readers look- record, but it’s been a theme at technology he had installed in one ing for and what does our industry Modern of late. I just came back from of his plants. He began by saying need to deliver? I think it comes ProMat 2015 in Chicago, and while “we’re having all kinds of problems.” down to a couple of things. there was plenty of exciting mechani- But as we talked further, his issues One size does not fi t all: In- cal equipment on display, the real had nothing to do with the opera- creasingly, readers are looking for talk was software. tion of the system. Mechanically, it different picking methodologies Why? Because, and handling solu- increasingly, the tions within their four hardware is just a walls. It’s not just means to an end. If about omni-channel, you spent any time the buzzword of the at the booths of the day. Instead, I think leading systems inte- it has to do more grators, you saw that with fi nding the most what’s clear is that cost-effi cient way to the software is what slice and dice SKUs makes an increas- based on physical ingly complex order characteristics, SKU fulfi llment processes velocity and order possible. profi les. At the same This focus on time, just because a software was driven technology works in home to me with two one facility doesn’t conversations I had At ProMat 2015 in Chicago last month, more than 800 companies exhibited mean it’s going to last week in Chicago. their materials handling and supply chain solutions, but much of the focus was work in another, The fi rst was a vice on software. even within the same

mmh.com MODERN MATERIALS HANDLING / A PRIL 2 0 1 5 9 distribution network. facilities so that they have the fl exibility materials handling systems and in- Flexibility, visibility and access: to respond now, not after the fact. creasing automation in the industrial Readers want systems that will give We’ve moved past the early adopters sector are two of the major driving them access to more real-time infor- and software is now poised to become factors of global conveyor systems mation about what’s going on in their the competitive differentiator. Ⅺ market. The developing automotive, retail, and food and beverage industries are also likely to fuel the growth INDUSTRY NEWS in the Asia-Pacifi c conveyor systems ProMat reflects industry confidence market. Europe is likely to hold its domi- THE SECOND HALF OF and Young Professional nance over the global conveyor 2014 saw strong per- Award winners. systems market at the end of the formance among MHI The Best Innovation forecast period. Latin America region member companies, with of an Existing Product is expected to be the fastest growing momentum projected to award went to CubiScan conveyor systems market, especially continue through 2015. for the CubiScan 25 di- in the emerging economies such as This is according to an mensioning and weigh- Mexico and Brazil where the indus- economic sentiment sur- ing system. The Best trial sector is booming. vey prepared by ProMat New Innovation winner sponsor MHI, which this was Forklift Simulator year celebrates its 70th anniversary for its driver training program. DIVERSITY and 30 years of ProMat. The winners of the fi rst-ever Grant Thornton: U.S. About 45% of member compa- MHI Young Professional Network nies expect sales/new orders to awards were: Michael B. Romano of businesses show little grow by 10% to 20% in 2015, for Associated for the Mentor Award; progress in advancing a total weighted average of 9.2% and Gregory R. Conner of Bastian women during past growth over 2014. To keep pace Solutions for the Outstanding Young decade with sales, staffi ng will grow at an Professional Award. equivalent rate. The MHI 70th Anniversary Celebra- THE NUMBER OF WOMEN in senior In addition, the results of the 2015 tion generated $25,800 from event management roles in the United MHI Annual Industry Report were ticket sales and donated it to The States has increased by just 1% dur- released during a ProMat keynote Material Handling Education Founda- ing the past 10 years, according to session. According to this year’s sur- tion, which provides scholarships and new research from the Grant Thorn- vey, customer pricing pressure (51%), educational opportunities to students ton “International Business Report” demands for faster response times studying in the material handling, (IBR), a survey of more than 5,400 (50%), and rising customer service logistics and supply chain fi elds. business leaders in 36 economies. expectations (49%) are the top three With a record 155,000 square feet Only 21% of senior business issues supply chain leaders fi nd very of exhibit space reserved by nearly roles in the United States are oc- or extremely challenging. 350 companies, Modex 2016 is sched- cupied by women, a decrease from In other MHI news, the associa- uled for April 4-7, 2016 at Atlanta’s the previous year (22%) and an tion released the 2015 Innovation Georgia World Congress Center. increase of just 1% from 2004. The research also reveals that of the AUTOMATION U.S. women in senior management roles, just 6% are chief executive Conveyor systems market to post offi cers. The majority of female senior business leaders serve in a steady growth until 2020 human resources capacity (44%), ACCORDING TO NEW RESEARCH demand for food and beverage is as corporate controller (20%) or as from Future Market Insights, the propelling the adoption of conveyor chief marketing offi cer (19%). global conveyor systems market is systems to boost production rates. “The lack of signifi cant progress expected to witness a steady CAGR To meet the needs and demands of during the past decade for U.S. of around 3% to 4% for the period of customers, manufacturers are provid- women in senior management is 2014-2020. ing highly customized products. disappointing,” said Erica O’Malley, The report suggests growing Growing demand for cost-effective Grant Thornton’s national manag-

10 A PRIL 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com Finalists selected for ing partner of Diversity & Inclusion. 2004, but down from 24% last year, inaugural Distinguished “Companies have been talking the indicating broad stagnation. Japan talk on gender equality for decades, remains at the bottom of the list Woman in Logistics Award but still too few are walking the with just 8% of senior roles held by THE WOMEN IN TRUCKING (WIT) walk.” women. Russia has the highest per- Association has announced the fi nal- Globally, 22% of senior roles are centage of women in senior business ists for the inaugural “Distinguished held by women—a 3% increase from roles in the world at 40%. Ⅺ Woman in Logistics” award. Finalists are Faith Garcia-Ross, vice president, consumer services and Latin American operations, Menlo Logistics, Aurora, Ill.; Kristy Knichel, president, Knichel Logistics, Gibsonia, Pa.; and THE Jean Regan, president and CEO, TranzAct Technologies, Elmhurst, Ill. POWER Finalists were selected from an extensive fi eld of high-performing women representing warehousing, traffi c and shipping, third-party AUTHORITY logistics, supply chain management INFORMATION • INNOVATION • INSPIRATION and related functional disciplines. The winner will be announced by program sponsor TMW Systems on behalf of WIT on April 17. “Logistics is a fast-paced, highly demanding discipline that is at- tracting thousands of talented and creative professionals each year,” said TMW Systems president David Wangler. “The impressive fi eld of nominees for this inaugural award is a validation that more opportunities are becoming available within the Building a more effi cient lift truck operation? broader transportation industry.” Start with EnerSys®. In her role with Menlo, Garcia- Ross helps guide a business that optimizes some $2.5 billion in annual First, you need an industry leading expert who can provide the information you need to make the right decisions. Then, you need innovative solutions – not just transportation spend on behalf of batteries and chargers – but proven programs and solutions to manage them customers in more than 20 nations. effi ciently and cost effectively for your operation. And fi nally, you need inspiration Knichel is a second-generation lo- to see the future of motive power so the choices you make now will carry you into gistics executive who began her career the future. as an intermodal dispatcher in 1997. As the world leader in motive power technologies, EnerSys® can provide it all. She and her father launched Knichel in 2003, she was appointed president To learn more about the ways EnerSys can transform your distribution, in 2007, and she has helped direct the production and warehouse operations, call 1-800-EnerSys or visit us company’s growth from $2 million to at www.enersys.com. nearly $50 million in annual revenue. As president and CEO of TranzAct Technologies, Regan directs operational and fi nancial activities for the largest woman-owned freight audit

and payment company in the United ©2014 EnerSys. All rights reserved. Trademarks and logos are the property of EnerSys and its afﬁ liates unless otherwise noted. States. Subject to revision without prior notice. E.&O.E.

mmh.com MODERN MATERIALS HANDLING / A PRIL 2 0 1 5 11 LIFT TRUCK TIPS

Prevent maintenance costs with cost avoidance One in 10 calls to a service provider can be prevented if you follow a simple procedure.

By Josh Bond, Associate Editor

s the tools to collect and act on fleet maintenance data improve, it seems fair to suggest a given fleet could probably cost less than it does. But, where to Astart? Will the most savings be found in aging equipment, batteries, impacts and abuse, planned maintenance practices or parts? “From a customer’s perspective, the biggest bang for the buck is avoidable damage, but another fast-growing area is cost avoidance,” says Bob McGowan, fleet operations manager for Yale Materials Handling. “An example of the difference is any time a service call can be avoided.” For example, say a service call is entered because a lift truck won’t start. Before the technician arrives, someone else finds that the battery is dead, and it simply needs to be plugged in. “But nobody cancels the call,” McGowan says. “That’s a huge waste of money. We handle about 300,000 calls a year, and anywhere from 8% to 10% of In terms of avoidable damage, measuring is only half those are avoidable calls.” the battle. The root cause could be the driver, the envi- To address the problem, McGowan recommends estab- ronment, floors, the warehouse design, a dock plate or lishing a simple procedure for service calls. An operation other equipment. Customers need to look at avoidable might put controls on who is authorized to place a service damage, find the problem and find a resolution for the call, but at the very least McGowan suggests the person long term, McGowan says. Telemetry can play a big role, who calls should be the person who has already diagnosed he suggests, by pinpointing when, where and who was the problem. In the event of a quick fix like a new propane driving. That data can then be used to educate and em- tank, the call can be avoided altogether. In addition, the power the driver. caller should be prepared to provide as much information “In the past, the first shift would come in to find a dam- as they can before a technician is dispatched. aged lift truck and second shift would say they didn’t do “Say you have a leak,” McGowan says. “The color of it,” McGowan says. “If you have high turnover and spend the fluid helps the technician identify whether it is oil, lots on training already, you might accept some avoidable hydraulic fluid or coolant. Also, where is the leaking hose? damage if there are no safety concerns and you know it On the mast or underneath? The technician can then would cost more to implement an enhanced training pro- bring the right tools and parts to fix it the first time.” gram. But you need to know the amount, cause and cost of McGowan advises against becoming overly reliant on that damage before you can make that decision.” telematic solutions, which can’t monitor all costs. “Maybe it McGowan suggests many service providers have the can automatically enter a service call, and there are plenty records needed to extract the relevant data, and it does of good benefits to that. But, if you look at the components not require any large investment to get that information. that collect the data, almost all have a wire connected to it. What about hydraulics, mast operation, tire wear, and all the Josh Bond is Modern’s associate editor and can be reached other things not related to what telemetry is measuring?” at [email protected]

12 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com “Eye-opening industry analytics data.”

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About half the Fortune 200 with lift trucks have implemented See what the buzz is all about. PowerFleet. Now, with the latest VMS technology—I.D. Fly over to id-systems.com—right now—and get busy Systems’ VAC4 platform-as-a-service—there’s no reason learning how new PowerFleet with VAC4 can make you look for you not to join them. Operator access control… like the smartest bee in your hive. PACKAGING CORNER

Pallet additives and special formulations help keep food safer Metal and X-ray detectors easily identify different proprietary detectable additives in plastic pallets, making it easier to ensure the safety of the product that’s being carried.

By Sara Pearson Specter, Editor at Large

ust as consumers have Metal and X-ray detectors eas- become more aware of the ily identify these types of proprie- ingredients in their food, so tary detectable additives, making Jhave the operations that handle it easier to ensure the safety of those products as they travel the product that’s being carried. from farm to fork—specifically Should a piece of an ORBIS pallet with regard to the formulations happen to wind up in the load, of the pallets upon which edi- either system triggers an alert bles are transported, says Curt and stops the line. Most, senior product manager Although the plastic pallets are for ORBIS Corp.’s reusable plas- inherently durable, those moved tic pallet lines. from ambient locations into and “Food processors have out of refrigerated or freezer en- become increasingly concerned vironments can be more suscepti- about eliminating possible ble to damage from impacts. “To sources of contamination in compensate for the temperature food, including from pallets,” fluctuations that can affect the Most explains. “So, in addition to offering plastic pallets resin—potentially making it more brittle—we also offer a that are engineered to be easily cleaned and not harbor special formulation for those applications,” adds Most. pests or pathogens, we’ve developed a variety of special Companies considering a special formulation or resin formulations and additives to meet those needs.” additive for their plastic pallets only have to order a Some processors have incorporated metal detec- minimum of 250 pieces. Most says that the company tors and/or X-ray machines into their handling lines as a works closely with customers to make sure that both the means to detect foreign objects. Every pallet load of con- correct pallet and the proper handling procedures are sumables—particularly produce and other perishables— put in place. passes through one of these machines to verify that they “We want to be sure that the performance of the mate- are contaminant free. rial meets their needs long-term, because the pallets are “Small pieces of debris can be hard to detect with engineered to last long-term,” he adds. these systems,” Most points out. “That’s why we offer various detectable additive options to our 40 x 48-inch Sara Pearson Specter is an editor at large with Modern and GMA pallets made of 100% virgin resin.” can be reached at [email protected].

14 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com

MODERN system report

AcuSport Corp. Automation that’s right on target

A goods-to-person picking solution moved AcuSport from Mary Grim, vice president conventional to automated DC of operations, processes. The result is lower AcuSport fulfillment costs and better customer service.

cuSport, a distributor of shooting sports products Executive Editor By Bob Trebilcock, with headquarters in Bellefontaine, Ohio, has a vision to connect the nation’s independent retailers with the sport’s manufacturers to better serve the consumer. Its focus is on the success of its retail cus- Atomers (see box: Culture counts). That vision has led the company to introduce several unique value-added services, like a system to share retail point-of-sale (POS) information across the supply chain and an auto-replenishment service to manage inventory for 1,000 of the industry’s independent retailers.

16 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN system report PHOTOGRAPHY BY CHRIS CONE/GETTY IMAGES

Innovations like those are just two of the ways AcuSport legacy warehouse management system (WMS) and manual distinguishes itself from the pack. “Retailers can buy the same picking processes were labor intensive and inefficient. “Our products at similar prices from multiple distributors,” says existing space was under utilized and our technology was Mary Grim, vice president of operations. “Our goal is to be outdated and difficult to change,” says Grim. She adds that a their first choice.” conventional RF-directed picker-to-part methodology, where The approach is working. Not only is AcuSport one of the order selectors traveled through the warehouse on tuggers largest distributors in the industry, it is projecting a doubling and picked orders to carts, “meant we were spending the of revenues over the next four years while broadening its same amount of time to pick a $4 cleaning brush as a $400 product offerings. firearm.” But booming growth creates its own set of challenges. Something had to change. Over the next two years, Back in 2012, the 100,000-square-foot distribution center AcuSport more than doubled the size of its DC to 200,000 near Columbus was bursting at the seams. What’s more, a square feet and implemented a Tier 1 WMS to track inven-

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 17 MODERN system report

• a vertical lift module (VLM) for the secure handling of highly regulated items, such as suppressors; • a second put wall area to handle oversized non-conveyables such as long guns and accessories; and • a four-lane shipping sorter. The end result, according to Grim, is that AcuSport has lowered fulfillment costs, especially on lower cost accessories; improved inventory accuracy and serial number control; improved space utilization; and increased throughput. “Our ROI for this project was supposed to be five years, and we are poised to exceed that number,” says Grim. “But the biggest benefit is that we are positioned to support our anticipated growth.”

Totes are automatically delivered from the multi-shuttle system to a light- New business models directed put wall. Here, an associate builds shipping cartons for orders. Founded in 1965, AcuSport was pur- chased in the 1980s by the L.M. Berry tory, direct picking and capture seri- in December 2013 and the automated Co., an international Yellow Pages alized information for reporting and picking systems were operational by advertising company founded by Loren compliance. Working with a systems July 2014. Murphy Berry. William Fraim, Berry’s integrator (Dematic, dematic.com), it Highlights of the project include: grandson, is the current CEO. modernized and automated its picking • a two-aisle multi-shuttle that auto- Today, the privately held com- and packing processes, including new matically delivers slow-moving items pany has 400 employees, nine sales picking methodologies for full pallets to a light-directed put wall area. About offices and two distribution centers. A and cases; slow-, medium- and fast- 27,000 of the facility’s 35,000 SKUs are 23,000-square-foot facility in Salt Lake moving pieces; and over-sized, non- managed by the multi-shuttle; City distributes ammunition and prod- conveyable products. “We went from • a three-level, 18-zone pick module ucts that are hazardous to ship by air a conventional pick environment to a for faster moving items; to customers on the West Coast. In all, highly automated part-to-picker opera- • a case pick to conveyor area for full AcuSport partners with more than 300 tion,” Grim says. The WMS went live case handling; manufacturers, including Smith and Wesson, Glock, Remington and Ruger. The company’s growth has been Up and running fueled by the increasing demand for How do you maintain an automated chased a resident maintenance pro- shooting sports coupled with a commit- materials handling system if you have gram from Dematic, which supplied never had automation in the past? the multi-shuttle, light-directed put ment to bring innovation to a complex, That’s a question that confronts walls, conveyors and sorters. convoluted and highly regulated supply distributors like AcuSport, who have As part of the agreement, a chain. never needed personnel with the Dematic resident technician works “In our industry, manufacturers sell technical skills to work on complex on site at the facility during the day directly to large retailers like Walmart, machines, PLCs and sensors or to shift. For the less critical second shift, troubleshoot software. For that rea- AcuSport can call a 24-hour help desk Dick’s Sporting Goods and Cabelas; son, vice president of operations or turn to an on-call technician in they sell to multiple distributors like Mary Grim says that AcuSport consid- close proximity to Bellefontaine. AcuSport; they sell to large buying ered the service and support capabili- “There are about 75 technicians groups; and, in some cases, they sell ties of potential partners during the located within 60 miles of our facil- directly to independent retailers,” says selection process. ity who can be here if we really need Instead of adding a supply chain them,” says Grim. “Fortunately, we’ve Grim. Meanwhile, distributors are also technician to its staff, AcuSport pur- had very little downtime.” selling into some of those same channels. Manufacturers and distributors

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The DC has two goods-to-person pick systems: In addition to the multi-shuttle, a vertical lift module stores and delivers highly regulated items such as suppressors. are required to capture serial numbers and validate firearms licenses to maintain a chain of custody for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). AcuSport services the 4,000 or so independent brick-and-mortar retailers, with a focus on the 1,000 that represent about 80% of the market. As that group has embraced technology during the past decade, AcuSport has increased its offerings to include value- added services like Web-based advertising templates and images and product descriptions that make their customers more effective retailers. AcuSport also launched a “Voice of the Consumer” strategy to connect the industry’s supply chain. That included the purchase of an electronic point- of-sale (POS) platform that enables participating retailers to transmit POS information to AcuSport through a customer exchange link. Sales data is then fed back to manufacturers who use it for collaborative planning, forecast- ing and replenishment. “In the past, manufacturers pushed product into the market and we ended up with a lot of

inventory in the channels,” Grim says. Culture counts “Now they can manufacture according Distribution managers generally focus pendent retailers who receive orders to demand.” on processes with measurable met- from that facility. That information also allowed rics to drive improvements in their Additionally, the team launched AcuSport to begin offering vendor- facilities. However, companies as its “I work for …” campaign to managed inventory and automatic diverse as lululemon athletica, Lincoln remind associates of who pays the Industries and Legacy Supply Chain bills. On the floor, associates wear replenishment services based on mini- Solutions are recognizing that the T-shirts with “I work for ….” and mum/maximum inventory levels set by culture in their facilities contributes to the name and location of one of the retailer. For instance, while fire- their performance. AcuSports’ customers printed on the arms bring customers into a sporting Add AcuSport to that list. One front. The company’s motto: “Helping goods shop, accessories are the most element of the DC expansion was to Retailers Succeed is My Job!” is instill a customer focus in associates printed on the back. “Ultimately, profitable items. They are also the on the shop floor. That happened in we’re trying to connect retailers to most labor intensive for everyone in two ways, according to Mary Grim, manufacturers to better serve the the industry to deal with. “We realized vice president of operations. First, consumer,” says Grim. “We want to that an auto-replenishment system AcuSport installed electronic boards bring that mission to life throughout would save our retailers time,” Grim in the facility to spotlight the inde- our whole organization.” says. “At the same time, it presented

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A three-level mezzanine features 18 pick zones. In this area, associates receive directions on their RF terminals and pick to cartons that are then conveyed to the next zone until orders are complete. us with the challenge of distributing To get there, AcuSport concluded of filling orders. The automation went those items at a lower cost.” that it had to double the size of its facil- live in July 2014. ity to 200,000 square feet and replace At the center of the operation is Automating the conventional most of its existing systems, including the multi-shuttle system that handles In 2012, AcuSport initiated an in-depth the legacy WMS. In addition, it needed more than 75% of SKUs. The shuttle review of its existing operations. The materials handling systems and pro- system automatically stores and deliv- result of that review was a roadmap for cesses to support its strategies. The ers slow-moving products to two pick- “disruptive growth.” resulting revamp of distribution opera- ing aisles. Once a donor tote arrives • The company was committed to tions took place in two phases. at a workstation, order selectors are doubling revenue over the next four In early March 2013, implementa- directed by the system to place the years. tion got underway for a Tier 1 WMS, items into shipping containers in cub- • It wanted to stay focused on its which was up and running by the end bies in a light-directed put wall. Once mission of enabling the success of its of the year. Meanwhile, the company all the items from the shuttle system independent retailers through key pro- broke ground on the expansion of its are picked for a specific order, the grams such as auto-replenishment. facility in May 2013 and began the shipping container is placed on a take- • And, it wanted to make these design of the new space and processes away conveyor and sent to packing. changes while business was strong. to automate its old, conventional ways Grim says that shuttle technology

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was chosen over other automated storage and retrival system (AS/RS) technologies based on three criteria: 1. Scalable: It is relatively easy to add more aisles as business grows. 2. Established: While shuttle technology is relatively new in comparison to mini-load AS/ RS and horizontal carousel systems, it was not bleeding edge. Shuttles are used by some of the country’s largest retailers. 3. Reliable: This may have been the most important consideration. “Getting orders out the door is important,” Grim says. “If one of the shuttles goes down, we might lose access to a lane, but we can keep operating.” (See box: Up and running) The shuttle system isn’t the only automation. A carton erec- Lift trucks, order pickers and tuggers are used for putaway and picking in the pallet tor feeds shipping cartons to and case storage areas.

pick areas and a three-level mezzanine with 18 pick zones that feature a conveyor system and RF-driven pick-and-pass methodology. The mezzanine handles medium- and fast- moving SKUs. Meanwhile, heavily regulated suppressors are stored and picked from a VLM. Another put wall area is used to assemble orders for long guns and oversized non- conveyable accessories.

Transitioning to automation While getting new systems up and running is always a job, AcuSport had to pull this off in the midst of an unexpected surge in business in the fall of 2012, following national elec- tions and concerns over gun regulations. “We were in the In the put wall area serviced by the multi-shuttle, an associate sees orders on a display middle of building the new screen. Note the “I work for ...” T-shirt, reminding associates of AcuSport’s customers. space, and we couldn’t build

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it fast enough because we were out of have to be made,” she says. in the WMS and automation systems. space,” Grim says. Despite all that, the biggest chal- “Had we not taken those steps, it would The solution was to operate two dis- lenge may have been the change man- have been very difficult,” Grim says. tinct warehouses within one space. One agement associated with the transition While Grim says that her team is part of the team continued to operate to automated processes. To make it still learning to use automation, the the manual space while another part work, AcuSport established a project system is already meeting its promise. of the team was busy loading inventory management office at the corporate “Four months after going live, we saw into the multi-shuttle, mezzanine and headquarters and assigned a team just throughput improvements of 30%, and case pick lines; testing the automation; for this project. we are projecting an increase in pro- and ramping up for volume in the new Expertise that wasn’t already in the ductivity that is five times our current area. “We couldn’t just flip a switch and organization was hired, including a level,” she says. “Long term, we plan to go live because you don’t really get a fla- director of distribution and additions go to a 24-hour/5-day-a-week shipping vor for how the automation is working to the IT department. Individuals from operation. We’re not there yet, but we until you have a volume of orders, and operations were taken off their normal now have a system that can support us then you realize there are tweaks that duties so they could become experts when we get there.” M

AcuSport moves from AcuSport Corp. Bellefontaine, Ohio conventional to automated SIZE: 260,000 square feet in Ohio, including office space; 23,000 square feet in Utah. PRODUCTS: Hand guns, long guns, ammunition and AcuSport’s new distribution center features shooting sports accessories multiple picking methodologies designed SKUs: 35,000 THROUGHPUT: 8,000 to 9,000 lines per day to lower the cost of the company’s auto- EMPLOYEES: 135 employees in operations SHIFTS PER DAY/DAYS PER WEEK: 2 shifts per day, replenishment program. 6 days a week.

n AcuSport’s Central Ohio distribu- • Reserve storage (2, 3) and pallet associates apply a label and place the tion center, technologies such as an pick line (5): The operator confirms the case on a takeaway conveyor (9). Cases Iautomated multi-shuttle storage and putaway by scanning the location and are conveyed to a value-added packing retrieval system, a three-level case pick the pallet bar code labels. The inven- area located on a mezzanine (10) over module and a conveyorized case pick tory is now available in the WMS. shipping. Cases are prepared for ship- line come together to fill orders for a net- • Multi-shuttle putaway: Pallets are ping, closed and conveyed to the ship- work of independent retail customers. delivered to a decant station (7) where ping sorter (11). Receiving: Roughly 90% of the items are scanned into a storage tote 2. Goods-to-person picking: The product received in Bellefontaine is that can hold up to eight different prod- multi-shuttle (4) delivers totes to a palletized. Product is staged in receiv- ucts. The warehouse control system goods-to-person station in the put wall ing (1) and verified by the receiving chooses the storage location. area. When the associate scans a label team. The warehouse management sys- • Pick module: At the pick module on the tote, the system identifies the tem (WMS) generates license plate bar (6), cases are depalletized and scanned right sized shipping container for that code labels and determines the storage into a picking location. order which is scanned into a cubby location. Picking: The facility supports five location in the put wall. The system Putaway: A lift truck operator scans picking processes. then displays on a screen the item to be the license plate bar code label and 1. Full case and pallet picking: Order picked, its location in the storage tote is directed by the WMS to a putaway selectors are given a batch of orders and and the required quantity. Once the location in reserve storage for pallets directed by the WMS to pick locations items from that tote have been picked (2) and cases (3), the multi-shuttle (4), in the full pallet and case pick lines (5). into shipping containers, the tote is a pallet and case pick line (5) or a pick Pallets are picked (5) and delivered to automatically conveyed back to the module (6). the shipping area (8). For case picks, multi-shuttle. Once all of the items for

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an order have been picked, the associ- pallet, with up to 80 items to a pal- ate places the container on a takeaway let. The pallet is then delivered to a System Suppliers conveyor. The shipping container can long gun put wall large enough (15) SYSTEM INTEGRATOR, SHUTTLE SYSTEM, then be conveyed to the pick module to accommodate oversized items. PUT WALL, LIGHT-DIRECTED PICKING AND (6) for more items or to packing (10) if On one side of the wall, an associate CONVEYOR AND SORTATION SYSTEM: the order is complete. scans the bar code label and serial Dematic 3. Pick module: The three-level pick number of items and places them in PROJECT CONSULTANT: Sikich module (6) is for faster moving SKUs. a container in a cubby location. Once LIFT TRUCKS AND PICK MODULE: Crown An order is initiated when an associate all of the orders for an item have been Equipment Corp. applies a label to a shipping container picked, a light on the other side of the WMS: Manhattan Associates from the box erector (13) and inducts put wall tells a packer that the order VERTICAL LIFT MODULE: Hanel Storage Systems (14) it into the system. When the con- is complete. The packer erects a box; tainer arrives at one of the 18 pick scans the appropriate serial numbers; PALLET RACKING AND SHELVING: Steel King Industries zones, the associate scans the label and manually packs the box. Those CARTON ERECTORS: Pearson Packaging and is directed by the WMS to a pick items are then palletized and deliv- Systems location; there, the associate scans the ered to shipping (8). PACKAGING SYSTEM: Sealed Air location label and is told what quan- 5. Suppressors: Silencers and sup- DUNNAGE SYSTEM: Day-Pak tity of items to pick. Once the item pressors, which are highly regulated, BAR CODE LABELS: ID Label Inc. and its serial number are scanned into are stored and picked from a vertical the shipping container, it is pushed off lift module (not shown). is sealed, it is conveyed to one of four onto a takeaway conveyor (9) and the Packing and shipping: Cases and shipping sorters (11). Items are then associate repeats the process for the shipping containers are conveyed to sorted to an LTL shipping lane or to next pick. the pack station (10). The contents of ground or express parcel carriers (8). 4. Long guns and non-conveyable the order are verified, any value-added Cases and containers are loaded into items: Long guns and non-conveyable services are performed and packing the appropriate truck and the order is accessories are batch picked to a materials are added. Once a container closed out in the WMS. M

9 Conveyor

6 5 Three-level pick module Case pick line Reserve storage Reserve storage pallets 4 cases 14 Pick 2 3 Multi-shuttle induction

Reserve 15 storage Long gun Box erector 13 pallets 1 Receiving put wall 2 11 Shipping sorter

Put wall 12 7 8 Shipping Value-added packing 10 Multi-shuttle decanting

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TOP

20systems suppliers

By Josh Bond, ust two years after it tied Schaefer for eral clients to justify big investments Associate Editor first place, Daifuku pulled ahead in to support planned volume increases. 2014, edging out its longtime rival by “Many of these larger projects involve less than $50 million. This development new building designs that require more is among the results of Modern’s 18th- than a year of planning and implemen- annual Top 20 Systems Suppliers list. tation to go live,” Saenz explains. As a Building on No. 1 Daifuku reported $2.54 bil- result of projects and commitments Jlion in revenues, up 3% from 2013, already in place, Saenz expects that their success in when it acquired Wynright Corp. 2015 reported revenues will show even 2013, the Top Schaefer Systems International’s further improvement. 20 sustained (SSI) $2.49 billion represents an 8% increase in sales for 2014, thanks to The view from the top growth in 2014 strength in food distribution, e-com- As Daifuku and Schaefer jockey for the and are on track merce and retail fulfillment on a global lead, Dematic again secured third place basis. However, president Arnold with $1.6 billion, constituting a 6.7% for continued Heuzen explains that SSI’s consoli- increase. John Baysore, president and improvement dated results shows a 6% reduction CEO of Dematic North America, attrib- due to a strong dollar and fluctuations uted the growth to a broadening market this year. in currency exchange rates. of small- and medium-sized businesses Growth across the list may seem aiming to enhance capabilities. subdued compared to 2013 revenues, “Companies that produce and dis- when half of the top 10 companies tribute products need solutions that posted nearly 20% year-over-year growth optimize their supply chain performance and the Top 20 were up 6.6% overall. in order to succeed, especially in this era But although the list as a whole gained of multi-channel distribution,” Baysore just 2.6% in 2014, industry experts like says. “Thanks to new scalable intra- Norm Saenz, a managing director of logistics solutions and point solutions St. Onge Co., suggest that the pace of for smaller and lower volume operations, growth remains strong. For instance, more companies than ever are embrac- St. Onge has been consulting with sev- ing the benefits of automation.”

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Top 20 worldwide materials handling systems suppliers Worldwide Worldwide Percent Percent 2014 2013 2013 revenue 2014 revenue change change Rank Rank Company Web site (million USD) (million USD) '13-14 ‘12-14 Headquarters 1 2 Daifuku Co., Ltd. daifuku.com 2,463 2,536 3% 7% Osaka, Japan Schaefer Holding Neunkirchen, 2 1 International GmbH ssi-schaefer.us 2,654 2,487 -6.3% -3.2% Germany 3 3 Dematic dematic.us 1,500 1,600 6.7% 23.1% Atlanta, Ga. Murata Machinery, 4 4 Ltd. muratec-usa.com 960 1,100 14.6% 4.8% Kyoto, Japan Vanderlande Veghel, The 5 5 Industries B.V. vanderlande.com 956 1,051 10% 33.9% Netherlands 6 6 Mecalux, S.A. mecalux.com 952 952* 0% 0% Barcelona, Spain Beumer Group 7 7 GmbH beumergroup.com 864 902 4.4% 24.9% Beckum, Germany

8 8 Fives Group fivesgroup.com 721 721* 0% 16.9% Paris, France

9 9 Swisslog AG swisslog.com 658 712 8.2% 4.7% Buchs, Switzerland 10 11 Intelligrated intelligrated.com 583 627 7.5% 19.7% Mason, Ohio 11 10 Knapp AG knapp.com 620 620* 0% 26.5% Hart bei Graz, Austria 12 12 Kardex AG kardex.com 556 556 0% -11.7% Zurich, Switzerland TGW Logistics 13 13 Group GmbH tgw-group.com 525 525* 0% 11% Wels, Austria Grenzebach 14 14 Maschinenbau GmbH grenzebach.com 477 477* 0% 35.5% Hamlar, Germany Witron Logistik + 15 15 Informatik GmbH witron.com 340 340 0% 13.3% Parkstein, Germany 16 16 viastore systems us.viastore.com 207 207* 0% 48.9% Stuttgart, Germany 17 16 System Group systemlogistics.com 157 174 10.8% -15.9% Fiorano, MO, Italy 18 N/A Egemin Automation egeminusa.com N/A 170 N/A N/A Zwijndrecht, Belgium bastiansolutions. 19 N/A Bastian Solutions com N/A 168 N/A N/A Indianapolis, Ind. 20 19 Savoye savoyeinc.com/us 128 138 7.8% 7.8% Dijon, France

* 2013 revenues. 2014 revenues were not available by press time. Source: Modern Materials Handling

One driver of Dematic’s growth has Murata Machinery, which reported the which now constitutes 20% of revenue. been its maintenance and aftermarket highest growth rate at 14.6% to close In addition, Vanderlande closed two services business—a theme repeated 2014 with $1.1 billion in revenues. The acquisitions in 2014: These included by Vanderlande, Intelligrated and company acquired Finnish automated Ferdar Automation Technology, a robot- Knapp. To support that growing materials handling supplier Cimcorp ics system integrator with experience in line of business, Dematic acquired last year, contributing more than $200 the logistics sector, and Smatec GmbH, Upturn Solutions in 2013, a leading million to the revenue figure. a provider of sortation technologies, provider of computerized mainte- With $1.05 billion, Vanderlande including a pocket sorter and modular nance management systems (CMMS) Industries is fifth on the list. CEO bomb bay sorter that can also serve as a for distribution, manufacturing and Govert Hamers says Vanderlande saw tilt-tray sorter. warehouse environments. growth in e-commerce, postal and parcel Given some companies’ fiscal years In fourth place, and one of only three markets along with a substantial uptick and ongoing preparations for ProMat companies to grow by 10% or more, is in the number of service contracts, 2015 in late March, several companies

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were unable to report revenues by press half grew by more than 6%. Not so in tive years. After growing 36% in 2013, time. In these cases, we’ve held previ- 2014, when the biggest players got big- Grenzebach (formerly reporting as ously reported revenues to preserve ger while numbers 11 through 20 col- KUKA Systems North America) did not each company’s relative position on the lectively grew revenue by less than a report 2014 revenues. list. One of those was sixth place fin- percent. Following in 15th place, Witron tal- isher Mecalux. The combined value of the list con- lied $340 million. A statement from Seventh-place Beumer continues its tinues a rapid climb. For instance, in the company explains that although ascent up the list with 4.4% growth to 2011, it took just $100 million to crack the number is unchanged from last $902 million. In early 2014, the sorta- to the Top 20 list and $383 million to year's, Witron did see growth that is tion specialist acquired Dallas-based make the Top 10. This year, No. 20 not reflected due to the exchange rate Glidepath, a designer, manufacturer (Savoye) posted $138 million in reve- between the Euro and the dollar. and integrator of airport baggage han- nue while No. 10 (Intelligrated) posted At 16th place, viastore did not sup- dling systems. $627 million. ply 2014 revenues by press time, so its Fives Group (Cinetic Sorting) was Knapp, number No. 10 on last year’s 2013 revenues of $207 million have not able to report 2014 revenues by list, was unable to report revenues by been carried over. press time. At No. 9, Swisslog added press time. Still, Kevin Reader, Knapp’s No. 17 System Group (System 8% to finish 2014 with $712 million; in director of business development Logistics) achieved the second-highest November, KUKA AG announced a suc- and marketing, says new orders and a growth rate of 10.8%, adding $17 mil- cessful public offer for Swisslog and now booming aftermarket business are good lion to close 2014 with $174 million owns more than 90% of Swisslog shares. news for the company. So is a growing in revenues. Greg Chaffee, vice presi- Intelligrated reached 10th place focus on software. “Twenty-five per- dent of systems sales and marketing after growing by 7.5%, or $44 million cent of Knapp's employees worldwide for System Logistics says the company thanks to the continued interest in are focused on software,” Reader says. enjoyed growth globally and in North solutions to address Internet retailing “Whether it's warehouse control and America. and the state of the logistics workforce, management systems or real-time con- Newcomers Egemin Automation and according to CEO Chris Cole. “The trols, customers are looking to improve Bastian Solutions claimed the 18th and need for retailers and manufacturers to performance and efficiency in their 19th spots. Egemin’s Michael Coryn, make the most of capital investments facilities.” marketing communications manager, and increase efficiency throughout In 2013, after completing a restruc- notes substantial increases due to large the supply chain elevates demand for turing process that began in 2011, contracts in warehouse automation for automation, software and aftermarket Kardex reported revenues of $556 mil- deep freeze applications. service, which in turn drives the con- lion, which did not represent an apples- Meanwhile, Bastian Solutions made tinuous growth of Intelligrated and the to-apples comparison with the prior investments in robotic manufacturing industry,” Cole says. year. 2014 revenues were not available. including mixed-case, full-layer pal- Despite being unable to report 2014 letizing and machine tending robotic Growth across the board revenues in time, TGW is again in solutions, according to Aaron Jones, Back in 2013, the bottom 10 kept pace 13th place, having fluctuated between president. It also released an updated with the top of the pack, when each 12th and 13th place for six consecu- software suite as well as a new modular, low-profile conveyor line. Jones says the company expanded into two new U.S. Making the list markets organically within Chicago and To qualify for Modern’s Top 20 list, companies must be suppliers of materials New Jersey, and also opened an inter- handling systems, not just equipment providers. In addition to manufactur- national office in Montreal. ing at least two major handling system components, a company must also Savoye just missed the list last year, employ full-time staff that designs, installs and integrates materials handling but returned at No. 20 with nearly 8% systems. These systems include at least two of the following: transportation devices, stor- growth to $138 million. age and staging equipment, picking units, sortation systems, information manage- This year’s Top 20 companies are ment systems, data capture technologies and other types of handling equipment. joined by countless others committed To be considered worldwide suppliers, companies must have a presence to helping the materials handling indus- in North America and must also be able to report materials handling reve- try continue to improve. Next year’s list nues to Modern. (Lockheed Martin, for example, is a systems supplier with a North American presence, but isn’t included in our Top 20 list because they could include newcomers, but it will can’t single out the revenue that comes from materials handling contracts.) certainly reflect a focus on increasing value. M

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MODERN special report

2015 Warehouse/DC Equipment Survey: Smarter funding for the future Though often characterized by feast or famine, this year’s view into warehouse and distribution center spending plans instead strengthens a pattern of deliberate investment. Today, readers are determined to get the most out of every dollar spent.

By Josh Bond, Associate Editor

hen an operation needs an infusion of about getting the most out of every dol- capital to improve, a “Band-Aid” solu- lar spent. “Many of our clients are also tion is often a shortsighted way to waste looking to invest in the right level of what little money is available. On the technology to support steadily increas- other hand, a massive project can feel ing volumes,” he says. “The low-hang- Respondent Wlike a “Hail Mary” attempt to make the ing fruit has been cut by many ware- most of resources that will probably not house managers, and the next step is to demographics come around again for several years. make smart investments.” In December, Peerless Research The results of Peerless Research About 60% of readers have less than Group (PRG) e-mailed survey ques- Group’s (PRG) 2015 State of $250,000 to spend, but a full 25% have tionnaires to readers of Modern Materials Handling and Logistics Warehouse/DC Equipment Survey sug- more than $1 million, which Saenz says Management, yielding 448 qualified gest that the industry has tired of both can enable major changes. Nearly the respondents from manufacturing paths. Instead, readers tell us that same amount of readers plan to take (46%), warehousing (24%), corpo- they prefer the middle ground and are their business to a new supplier, and rate (22%) and aligned logistics steadily investing in targeted solutions Judd Aschenbrand, director of research professionals (8%). The median revenue of responding companies that position them for efficiency, pro- for PRG, says that means a lot of oppor- is $90.7 million. Qualified respon- ductivity and growth. tunity. dents—those managers and per- According to Norm Saenz, manag- “It’s a good sign for the vendor com- sonnel involved in the purchase ing director of St. Onge Co., a con- munity, but it’s also a good sign for the decision process of materials han- sulting firm specializing implementing end-users who are making it clear that dling solutions—hold influence over an average of 145,313 square feet solutions in warehouse and distribution they either need more suppliers and of warehouse or DC space. operations, the survey results indicate solutions or aren’t satisfied with what that companies are growing smarter they have,” Aschenbrand says. “There

28 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com How is the present state of the economy affecting your spending on materials handling equipment technologies services and solutions?

50% 2012 2013 2014 2015 45% 43% are more shifts in this survey than in 35% 35% previous years. Still, the results show 27% 24% that this is a deliberate industry that 19% 17% 17% doesn’t make knee-jerk decisions.” 14% 14% 16% 14% 16% 14% The yellow light turns green We are taking a "wait We are holding We are proceeding The economy is having Throughout the history of this survey, and see" approach, and off on investing with our investments little or no impact making only those pur- on our materials the “wait-and-see” approach has been chases and investments handling spending the most popular one by a large margin. that are critical to sustain- This year, the number of hesitant read- ing our ongoing business On what? 2014 2015 ers sharply dipped from 43% to 35%, Fork lifts and lift trucks 66% 64% the second 8% drop in a row. It now ties On what? 2014 2015 Materials handling equipment 64% 67% the number who are ready to proceed Capital equipment 57% 30% Technology Information systems 49% 53% with investments, which shot to 35% All major capital purchases 47% 50% (WMS, ERP, etc.) from 27% in 2014 and 19% in 2013. Conveyors and sortation equipment 40% 42% Technology/Software 42% 17% The survey captures both actual Storage equipment 39% 15% Robotics 23% 13% Fork lifts/Lift trucks 37% 15% AGVs - % 13% spend on materials handling equipment in the previous year and anticipated spend in the coming one to three years. Source: Peerless Research Group (PRG) Readers’ projections tend to be accu-

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 29 MODERN special report

What percent of your Which systems and equipment are overall spending you likely to evaluate or consider during the next 12 during the next 12 months? months will be on… Materials handling equipment 2013 2014 2015 48% 43% 43% 43% Materials Lift trucks and accessories 49% 47% 52% handling equipment Racks and shelving 47% 49% 46% Bar coding 31% 33% 40% Totes, bins, and containers 32% 33% 33% 26% 29% 30% Information 25% Packaging including palletizers, 31% 28% 31% systems pallets, and dunnage 31% Dock equipment 30% 28% 31% 27% 28% 27% Other Mobile and wireless 27% 24% 31% Conveyors including 22% 26% 25% sortation equipment 2012 2013 2014 2015 Order picking and fulfillment 22% 24% 23% Controls 15% 18% 23% Information Systems solutions 20% 20% 21% management systems 2013 2014 2015 RFID Solutions/Products 20% 19% 21% Bar coding - % - % 54% Hoists, cranes, and monorails 16% 17% 19% ERP 34% 27% 22% Power transmission including 16% 14% 17% WMS 32% 23% 22% motors and belts WCS (Warehouse 28% 26% 21% Automated storage including 9% 9% 13% control systems) carousels and vertical lift modules Asset management - % 22% 21% Mezzanines 10% 8% 9% systems 3PL services 10% 8% 8% Voice recognition 15% 15% 10% AGVs 5% 6% 6% TMS 11% 7% 9% LMS (Labor manage- - % 15% 5% ment systems) Source: Peerless Research Group (PRG) rate, if a bit conservative, and this year’s ture readers’ current and future usage tion in 2015. When asked whether any forecast suggests more of the same in of mobile technologies. More than half recent purchases were firsts or consti- 2015. (57%) are using or have plans to use tuted a substantial change in historical Although more are ready to spend, mobile solutions, which are used by practices, 40% pointed to their new the average amount has held flat more employees (40%) in more loca- information technology systems. About at about $345,550 for three years. tions (15%)—including outside the a third said recent investments in mate- However, Aschenbrand notes that four walls (19%). rials handling equipment had contrib- in the same time period, the median Bar code scanners (65%) and labels uted to their new course, and another spend has jumped nearly $14,000, indi- (56%) top the list of devices or technol- third said purchases hadn’t had much cating more companies moving into ogies either currently in use or planned impact on processes. higher spending levels. for the coming year, as well as smart As readers settle into their new IT In the next 12 months, 43% of phones or tablets (62%), RFID readers systems, the survey highlights an ele- total planned spending will go toward (25%) and tags (22%), and voice tech- vated equipment spend and a nearly materials handling equipment. Of that nology (13%). “Mobile technology is universal dip in anticipated spend for IT amount, readers are looking to buy lift certainly an emerging phenomenon in systems. Interest in labor management trucks and accessories (52%), racks the warehouse,” Saenz says, “and five systems (LMS), which debuted on the and shelving (46%), and totes, bins years ago it wouldn’t have shown up on survey last year at 15%, fell to 5%. and containers (33%). Both bar coding a survey. This will increase every year Because LMS modules are now (40%) and mobile and wireless solu- going forward.” found in all tiers of warehouse man- tions (31%) saw significant spikes in Planned spending on information agement systems (WMS), and since reader interest from previous years. technology suggests many businesses a number of other new solutions can The trend is reflected in new survey have already modernized their plat- boost labor visibility, a shifting mar- questions this year designed to cap- forms and will now focus on execu- ket could account for the data dip.

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Elsewhere, the survey clearly one in five in coming years. illustrates a strong focus on In your operation, which is now the most This year’s survey included labor management, safety and common? And, which do you believe a new question geared specif- productivity. will be the most common in 2 years? ically toward capturing reader interest in outsourcing the Best practices and their Buy online, ship to 7% maintenance of their auto- outcomes customer from store 9% mated materials handling sys- Safety again topped the list Buy online, ship to 14% tems. Slightly more than half of readers’ current pressing customer from vendor 19% maintain such equipment in- issues, with 89% of readers Buy online, ship to customer 30% house, and only 12% exclu- ranking it as very important. from DC (distribution center) 34% sively outsource. Another When asked which issues will 1% 35% employ a mix of the two. Buy online, pickup in store become even more important 3% Now According to readers, ven- in the next two years, respon- dors and maintenance sup- 10% In 2 years Order in store, ship to customer dents predicted increased 9% pliers are chiefly focused on emphasis on training (65%), maintenance (49%), upkeep/ 23% labor availability (57%) and Other* upgrades (46%), consult- 20% ergonomics (52%). ing (43%), and data analysis “Every distribution center * e.g., order by phone, build/produce and ship, buy and ship from distributor (17%). needs quality people to run Source: Peerless Research Group (PRG) Saenz suggests that more efficiently,” Saenz says. “With and more companies might a growing amount of technology used in Among warehousing and distribu- be looking to in-source materials han- the traditional warehouse, finding and tion operations, labor productivity is dling equipment maintenance since it keeping the best people is fundamental still toward the top of the list (59% now, can be less costly. “But that means full- to the success of the operation.” 65% in two years), but efforts to lean time staff, certain facilities, and techni- Among manufacturing operations, inventories are also primed for growth cal know-how,” he says. “If it is only lift labor productivity again scored high, (50% now, 58% in two years). trucks, it could be managed in-house, but was leapfrogged this year by lean “It’s not surprising to see a push but if the system includes conveyors, manufacturing. With 57% of read- into measuring performance and lean sorters, automated storage and retrieval ers currently focused on lean and principles over the next two years,” systems, it might be safer for some to nearly two thirds expecting the trend says Saenz. “It seems more surpris- outsource.” to grow in the next two years, the only ing that it’s less important right now. topic with a faster anticipated rate of Tracking and measuring performance Automation and robotics growth is just-in-sequence production. is the sure way to discover productiv- In addition to concerns and interest in Distinct from just-in-time (42% now, ity-increasing opportunities.” He also available solutions, this year’s survey 45% in two years), just-in-sequence is notes that reader interest in outsourc- sought to identify those areas where now an issue for 29% of readers, and ing, which concerns one in 10 read- robotics and automatic guided vehi- 38% see added pressure coming. ers now, but could become a focus for cles (AGV) have already penetrated

2014’s strong economic performance expected to continue in 2015 The second half of 2014 saw strong performance among For this reason, 45% of respondents said they expect MHI member companies, with momentum projected to sales/new orders to grow by 10% to 20% in 2015, for a continue through 2015, according to an economic senti- total weighted average of 9.2% growth over 2014. To keep ment survey prepared by ProMat sponsor MHI. pace with sales, staffing will grow at an equivalent rate. Many end users are turning to automation to improve Additionally, the improved economy will bolster MHI their bottom lines and to address the skilled labor short- members’ capital goods purchases by an average of 8.1% age and aging workforce, said MHI CEO George Prest. over 2014, with strategic investments in new plants (20%), “The adoption speed of supply chain innovations— equipment (30%), information (25%) and technology coupled with rising consumer expectations for anytime, (25%) topping their shopping lists. anywhere service—has stressed traditional supply chains The survey included MHI’s leading members from both to near-breaking points,” added Prest. “End users who do the MHI Board of Governors and Roundtable Advisory not adapt will struggle to remain competitive and deliver Committee. orders that are accurate and on-time.” —Sara Pearson Specter

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readers indicated e-commerce has led them to perform distribution functions in a manufacturing environment (46%) and perform manufacturing functions in a distribution environment (36%). Packaging and fulfillment might occur at the point of manufacture (47%), warehouse (39%), DC (22%), fulfillment center (11%), retail store (4%) or is outsourced (3%). Saenz says he’s surprised to hear materials handling applications. somewhat in coming years, according many manufacturers would perform According to results, one in 10 to Saenz. e-commerce distribution in their readers currently uses an AGV for Those capabilities expected to grow plants. “The large manufacturing com- tasks including transportation (41%), include “buy online, ship from vendor” panies that I’ve worked with are fulfill- storage (38%), bin picking (23%), (14% to 19%), “buy online, ship from ing e-commerce either using a 3PL, a truck loading (20%) and unloading store” (7% to 9%) and “buy online, separately operated facility, or within (14%), and order fulfillment (20%). pickup in store” (1% to 3%). an existing distribution center,” he About 18% use robotics for functions All of these omni-channel path- says. “I am less surprised that many like palletizing (42%), pick and place ways also impact where functions are distribution centers are required to or part transfer (36%), packing/pack- performed. When asked whether a perform some assembly and or manu- aging (36%), depalletizing (19%), and company’s e-commerce activity has facturing to finalize an e-commerce unpacking (12%). prompted or will prompt changes, request.” M In each of these applications, AGVs and robots must justify themselves, Saenz says, and there are many semi- automated solutions that might provide the required throughput at a much lower investment than a fully automated one. “Automation can also be a less flexible solution,” he says, “and with uncertainty still in the air, companies are looking to make smart investments that keep their options open.”

E-commerce and fulfillment In an effort to illustrate the impact of the e-commerce revolution on equipment purchases, this year’s survey asked which capabilities are now most common and which might be two years from now. Three in 10 currently support “buy online, ship to customer from DC,” and 34% expect it will be common in two years. Readers expect fewer consumers will care to buy in the store and then make a second trip for pickup. Although 15% of companies now offer such services, only 6% expect it to continue in the future. “Order in store, ship to customer,” is in practice among 10% of respondents, but could also fall

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 33 MODERN best practices ways 3PLs 7support warehousing and distribution Initially focused on the transportation component of the supply chain, the modern day 3PL offers a range of services to support warehousing and distribution.

By Bridget McCrea, Contributing Editor

s the companies that manage the logistics Crossdocking imported goods operations of a variety of facilities, third- 1 Whether their operations are party logistics providers, or 3PLs, have domestic in nature or based overseas, come a long way since their inception in companies that import goods typically the 1970s. In response to demand, for need crossdocking support to help man- Aexample, 3PLs expanded their services age and direct those goods. Defined as to not only include end-to-end logistics the unloading of materials from an coordination and management, but also incoming vehicle and then loading technology integration (such as transpor- the materials directly into outbound tation management systems and ware- vehicles with no “storage time” in house management systems), global ship- between, crossdocking allows compa- ping functions as well as warehousing/ nies to receive goods, segregate them distribution support. by purchase order, destination, SKU As its position in the supply chain or store location, and then distribute continues to evolve, the modern day the items to the final destination with- 3PL has put forth an even bigger effort out having to ever store the goods. to meet its customers’ needs on vari- Kyle Oslos, senior director of logis- ous levels. Here are seven reasons that tics at APL Logistics, says companies companies are turning to 3PLs in the with global supply chains are particu- warehouse and distribution space. larly well positioned to benefit from

34 A PRIL 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com this offering. “If your supply chain As its position in the supply chain continues to evolve, the modern day 3PL has is primarily overseas in countries like put forth an even bigger effort to meet its customers’ needs on various levels. China and India, the breaking out of the shipments into separate POs and easy to integrate with other solutions. pany that has to comply with the big destinations doesn’t happen at the ori- “We get involved with connecting the box retailer’s standards and that must gin,” he says. “A 3PL can provide the pieces together,” he adds, “to give cus- make sure all items are packed, labeled crossdocking functionality that allows tomers visibility all the way from their and shipped correctly. companies to bring those goods in with- vendors to the end customers.” The same company may also be out having to manage, sort and even Calling IT infrastructure a “sig- sending items directly to consumers— touch them.” nificant expense” for companies, Alan an exercise that requires return labels, Amling, vice president of global logis- printed catalogs, and/or even hand- Access to IT infrastructure tics and distribution marketing for written notes to be included with the 2 Companies that want be able to UPS, says he’s seeing more companies orders. “These steps have to be taken leverage all of the features of a ware- leveraging their 3PLs’ existing plat- during the fulfillment stage,” says house management system (WMS), forms. “When you can utilize a WMS Bourke, “and they are just some of the but don’t want to have to invest in a that a 3PL already has in place,” he warehouse/distribution services that a full-blown technology platform, can says, “that’s one less thing that you 3PL can provide.” tap into their 3PLs—many of which need to worry about and invest in.” offer such integrations. Seko Logistics, Strategic workforce for example, owns a proprietary WMS Omni-channel fulfillment 4 management that integrates with companies’ exist- 3 support The fact that 3PLs aren’t historically ing enterprise resource planning (ERP) With all eyes focused on omni-channel known for helping warehouses and dis- or transportation management systems (i.e., creating a seamless shopping expe- tribution centers manage their workforce (TMS). rience for customers across all distribu- hasn’t stopped some of these providers “We’re agnostic in technology,” says tion channels) right now, it just makes from providing overall strategic work- Brian Bourke, vice president of mar- sense that logistics specialists like 3PLs force management. “3PLs are helping keting at Seko, “so we will just figure would step up to the plate and support warehouses and distribution centers get out a way to connect to a customer’s omni-channel efforts. a handle on issues like labor and work- existing systems.” This is a particularly “When a retailer moves from 5% force optimization,” says Todd Johnson, important point, he says, because once e-commerce to 80% to 90% e-com- global vice president of the 3PL global stretched outside of a company’s four merce, the fulfillment side shifts quite business unit for JDA. Driven primarily walls, technology systems aren’t always a bit,” says Bourke. Consider the com- by the post-recession labor shortage that’s

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 35 MODERN best practices

currently challenging some companies, this value-added service helps companies focus on the utilization and development of their staffs. “Labor is one of the largest cost drivers in the warehouse,” says Johnson, “and we’re definitely seeing 3PLs helping to take the cost of out of the warehouse through the use of advanced labor planning solutions.”

Last-mile configurations 3PLs are offering value-added DC activities that help companies cut down on 5 and deliveries the number of nodes within their own supply chains. In response to demands for fewer distribution points across the supply visibility services businesses. More services on the horizon chain, 3PLs are offering value-added “Some of these developments are As companies outsource more ware- DC activities that help companies cut really driving a need for 3PLs that can house and distribution functions to down on the number of nodes within offer these types of services and technol- third parties, and as more 3PLs step their own supply chains. “We’re using ogy,” says Johnson. “That would allow the up to the plate and incorporate more DC points to apply those value-added pharmaceutical companies to quickly services and solutions into their offer- services to products—mostly in the adapt to emerging legislations while gain- ings, expect to see even more symbi- interest of velocity and customer ing better visibility control in the space.” otic relationships form between 3PLs responsiveness,” says Carl Fowler, vice and their customers. “We’re definitely president of sales and engineering for Final-stage kitting seeing an increased interest from com- Menlo Logistics. Such services help 7 and packaging panies that want to use 3PLs that can warehouses and distribution centers Third-party logistics providers offer up expand outside of the transportation address their “last mile” distribution a host of transportation and warehous- area,” says Johnson, “although right challenges. Defining the last mile as ing services, but Amling says the real now, the majority of 3PL services are the final point of configuration to final magic happens when those providers go still focused on the core transportation delivery to the customer, Fowler says beyond standard fulfillment—storing, and logistics areas.” 3PLs are installing finishing touches on picking, packing and shipping—with Johnson sees a shift coming on the products, handling final configurations, value-added services like final-stage horizon, however, with more 3PLs pro- and even embroidering team hats for kitting and packaging. Using athletic viding services around whole inventory events like the Super Bowl. “It’s about bandages as an example, Amling says and order visibility. “From a consumer delaying configuration until the last that while Walmart may want the items perspective, we expect to be able ‘touch,’” he says, “and then address- assembled into a five-pack, Walgreens to have full visibility to our orders,” ing the last mile delivery component, might request a “buy two, one free” offer. Johnson says. “From the moment we which can include installation, coding, “All of these different retailers want place the order, through the transit pro- quality checks, and/or final white glove- everything customized to their own pref- cess, and right up until it reaches our style delivery service.” erences,” Amling says. “You have to be doorstep. That’s the expectation.” To able to predict demand across the vari- meet that expectation, Johnson adds Industry-specific supply ous retailers and handle the different, that warehouses and distribution cen- 6 chain oversight requested configurations upstream— ters need the kind of technology and In light of the increased scrutiny being when you’re doing the manufacturing solutions that many 3PLs already pos- paid to the pharmaceutical space by and packing.” Where the 3PL comes sess and provide. M the U.S. government (for example, in is by providing kitting and packaging. the Compounding Quality Act and the This effectively allows the warehouses Drug Supply Chain Security Act will and distribution centers to postpone any require the FDA to develop a national type of predicting or decision-making Companies mentioned track-and-trace system that pharma around specific order volumes. “The in this article manufacturers must use when intro- company sends them to us in bulk and, • APL Logistics • Seko Logistics ducing products into the supply chain), as the orders come in,” he says, “we pick • JDA • UPS Johnson expects more 3PLs to get into and pack them according to the retailer’s • Menlo Logistics the track-and-trace and supply chain requirements.”

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P S Flexible finance

Businesses, applications and equipment for your needs change over time, and lease agreements should support rather than hinder fleet those changes. Fleet costs don’t stop at the purchase price, and expanded collaboration between fleet managers, dealers and finance partners is changing the way fleet costs are managed over time. veryone likes saving money, but when it comes to lift truck fleet management there’s no shortage of stories about those who attempted to be a penny wise By Josh Bond, Associate Editor only to end up with pounds of trouble. Lease agreements that look good at first can result in big costs at the end of the E term. The practice of holding on to spare or aging equipment is handy dur-

38 A PRIL 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN information management

ing peaks, but saps resources the Collaboration rest of the time. Fleet waste at Data can help monitor a lift truck’s health over time, but Bill any given time often comes down Buckhout, director of leasing and re-marketing for Hyster to the number of lift trucks in Company, says there is still some art to pairing the right equip- that fleet. Too many and unnec- ment with the right application. essary expenses add up. Too few “Although data is great for making operational decisions, it and production suffers. doesn’t do a good job of picturing what the customer is trying The fear of not having enough to accomplish,” he says. “There needs to be synergy between equipment to get the job done has the proper truck and the proper specifications. You can buy a contributed to a longstanding habit less expensive truck and pay many times over for that choice if of managing too many lift trucks. it doesn’t match the application.” Companies have been happy to Ideally, there is a close correlation between each lift pay a premium to ensure a piece truck’s utilization data and the structure of a lease, purchase of equipment is always on hand or rental agreement. However, according to Bob McGowan, when needed, but you can right- fleet operations manager for Yale Materials Handling Corp., size a fleet without wasting money “getting procurement on the same page with operations is a or compromising productivity. huge challenge.” “I would estimate that 75% of McGowan recommends an ongoing conversation companies could probably stand between the two camps, where the procurement side out- to reduce the size of their fleet,” lines its challenge to control up front equipment costs and says Derek Knapp, national operations works to explain the impacts of those decisions. accounts manager for Kenco In recent years, the focus has often swung from one side to Fleet Services. “They might be the other, as efforts to cut costs zeroed in on initial savings able to get rid of old equipment, or total cost of ownership, which accounts for the equipment they might simply have too many price as well as maintenance and operator expenses over the units, or they might be paying life of the equipment. for rentals that are just sitting “Before the economic downturn, there was a shift in the around. A lot of companies could industry as it began to focus on total cost of ownership,” easily downsize by 10% to 15% McGowan recalls. “Then when the economy turned, many by diving into the information decided to get leaner, leverage their spend, acquire only the they already have.” bare minimum equipment and lean on equipment that much Unfortunately, information is harder. For a while the industry was focused on driving cost often the last thing a manager out of the acquisition, but now it’s coming back around to a considers when he senses an wider perspective.” equipment shortage. “They have The total cost of ownership is useful in establishing a long a certain number of lift trucks view of equipment usage patterns, McGowan suggests. This and operators because they can prevent blanket 60-month lease terms for equipment that based the decision to add them could end up with either 3,000 hours or 13,000 hours of use on a manager who came to pro- by the end of that term. But according to Tim Combs, execu- curement and said ‘I need more,’” tive vice president of sales and marketing for The Raymond says Jim Gaskell, director of Corp., granularity is the real key to controlling costs. Global Insite Products for Crown “One of most valuable metrics that could be monitored is Equipment. “It’s the tyranny of the urgent.” the cost per hour to operate a lift truck,” Combs says. “You The urgency to add equipment often overlooks the fact could break that down by simply dividing the monthly pay- that many lift trucks are actually used only 40% of the time, ment by the hours used that month, but unless you look at Gaskell says, or that three units in a fleet of 10 might be used those hours and dig a bit deeper into the maintenance spend only a few minutes per day. “Fifteen years ago, if people looked and the avoidable cost per hour, the monthly cost can be busy, the manager figured they probably were,” he says. “Now, misleading.” we can much more readily assess the productivity of a lift Combs suggests fleet managers take a closer look at the truck and its operator. Then we can determine the optimal payment structures for each piece of equipment. The most quantity, usage and cost of that equipment.” costly way to deploy a lift truck is the monthly rental, he

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 39 MODERN information management

explains, which should be used only for a few days, weeks or months as needed. “But you’d be surprised how many keep it for 18 months,” Combs says. The next most expensive approach is the short-term rental, which often includes planned maintenance and repairs and is ideal for seasonal use. Then there’s the long-term rental with a monthly rate that includes long-term maintenance and a service plan, maybe for 36 months. The standard leasing program should result in a slightly lower cost per month than a long-term rental, but there’s a longer commitment period of anywhere from 48 to 84 months. Of course the cheapest in terms of acquisition costs is to simply buy a piece of equipment, but this can result in the greatest total costs without an understanding of the resources required throughout the equipment’s life. Whatever the plan at the outset, it is important to be prepared for change. No two pieces of equipment will have identical utilization, and their costs should reflect any differences. Detailed data can help determine initial fleet composition, but data’s greatest value is to inform adjustments to that have three lives. The initial user should ever was before, especially if you can fleet over time. “Say a customer has five use the equipment as close to full time prove maintenance costs will go down.” pallet jacks, eight reach trucks and four as possible, deplete the bulk of the lift Having recognized the importance counterbalanced,” Combs says. “Then truck’s economic life and retire it before of maintenance over time, some cus- you get down the road, the customer cost outweighs value. Equipment could tomers have opted for single-payment base changes and maybe they have too then move to a short-term rental fleet leases. With cash on hand, these cus- many reach trucks and not enough pallet for seasonal use, where it might be tomers see value in an outright pur- jacks. They can easily make that switch.” needed 75% to 80% of the time. A chase to minimize interest costs and couple of years later, the dealer might keep equipment off the books. But the Charting a flexible course refurbish as needed and sell the used idea of being left to maintain the equip- No two applications are the same, lift truck to someone who only uses it ment alone is less appealing. In this even in the same facility, so there is no two or three hours per day. case, the customer pays for the entire reason the cost structure for a given Whatever a customer’s needs, payment stream up front, but still has piece of equipment should be identi- Buckhout emphasizes that leasing the replacement schedule of a typical cal to another. Each unit’s use will also arrangements are becoming more flex- operating lease. change over time, and therefore its eco- ible and should not limit the ability to “In five years, you give back the lift nomic life will be consumed at differ- right size a fleet as conditions change. truck and there are no end-of-lease has- ent rates. “The first thing we start with is the sles,” Buckhout explains. “And because In very harsh applications like a meat basic principle that the customer needs the dealer is invested in preserving the packing plant, it might make sense to to rotate the fleet, and that starts with residual at the end of that term, the lease replace a lift truck in six months and defining the correct lease term that will structure can be a way to be sure the transfer it to a less grueling application. create a natural replacement cycle,” he dealer has a little more skin in the game.” That transfer might occur within an says. “But the lift truck operator and organization’s fleet or the dealer might its maintenance are the real costs. The Maintaining savings resell the equipment. cost of the lift truck itself is less impact- Because they encourage customers and Combs says each lift truck should ful on the purchase decision than it dealers or service providers to share a

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www.mmh.com/criticaltopics MODERN information management

Disciplined data collection can inform fleet decisions, but there is still an art to pairing equipment with applications.

can load up the costs on the front or back of the deal, and I’ve heard hor- ror stories where return costs were huge. It’s the same with maintenance, where a supplier quotes $1 per hour for maintenance, knowing they will end up charging you $2 per hour after they account for misuse and abuse.” Then again, if business is surprisingly good and equipment ends up over- used by the end of the term, additional costs might not be a bad thing. “Why decouple the benefits of extra volume from the cost for equipment?” Gaskell asks. “Maintenance data, telematics data, operator and vehicle use should correlate with cases moved. You might have paid a premium on the overuse of equipment, but you still made a profit on that additional volume.” Markison suggests this sort of correlation indicates that fleet management and finance have entered a third phase. The first phase centered on eliminating units with low utilization, he says. In the second phase, after the fleet is right-sized, it’s about making stake in the condition of a lift truck, Markison, director of North American sure the equipment is down for the lease terms are commonly bundled with sales for UniCarriers Americas. least amount of time. full maintenance agreements. Gearoid “Many full maintenance agreements “This is key, since the cost of stop- Hogan, vice president of sales and mar- exclude odds and ends, but customers ping production can be orders of magni- keting for the Northeast at Combilift, are pushing for complete maintenance tude larger than even the biggest repair sees the trend as customers increas- coverage, including tires and even costs,” Markison says. “We see contracts ingly move toward these agreements. minor abuse,” Markison says. “There where customers expect no lift truck to “Whether a two- or five-year lease, are even some requests for year-end be down for more than four hours.” they’re looking for certainty in their reimbursement of any unspent portion The third phase, Markison says, total cost of ownership over that time,” of monthly payments.” involves a much broader consideration Hogan says. “All of us are working on a The idea of getting money back at of a fleet’s impact on operating costs. preventative maintenance program and the end of a lease might sound for- This evolution is also reflected in the a closer relationship with the customer, eign, Crown’s Gaskell says, but main- approach of large firms like DLL, as opposed to a reactive approach.” tenance is essential to a cost-effective which provides asset financing and Still, if a machine is down for what- lease of any kind. For those who have leasing to equipment manufacturers, ever reason, Hogan says even the pro- been burned on leasing, he suggests, dealers and distributors around the tection of full maintenance coverage it’s often about the difference between world. DLL reported $9.7 billion in cannot always prevent severe impacts the front and back end of the lease. “A new business volume in 2013, and has to the business. With enough disci- customer might get really excited about twice the market share of its nearest pline, however, the maintenance agree- a low payment initially, only to be less competitor. The firm recently formal- ment might go a step further, says Brian happy at the end of the lease. OEMs ized the creation of its Global Fleet

42 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN information management

Both end-users and service providers have more incentive and more tools than ever to control costs over the life of a lift truck.

Customer Account team, which focuses on the entire fleet management cycle from procurement to solutions for effectively managing a fleet. Theo Rennenberg is a fleet asset manager at DLL and heads up the newly formed group. He says its creation fol- lows several years of the company’s focus on not only originat- ing new business, but continuing to help customers manage fleets after the sale. “Having collected the data to clearly illustrate optimal decisions, the next horizon is getting the customer out of the whole decision tree by having equipment suppliers and their service organizations deliver the usage of the equipment,” Rennenberg says. “As service delivery organizations better organize and predict life cycles for equipment, and even individual components, this data can be used to best model total cost of ownership and deliver usage-based contracts on a regular basis.” Customers are pushing for telemetry-driven, usage-based leases, Rennenberg adds, where the contract term fluctuates with the hours of usage. “This arrangement should eliminate overtime charges due to over-utilization, or over-payment due to under-utilization.” M

Companies mentioned in this article • Combilift • Crown Equipment • De Lage Landen (DLL) • Hyster Company • Kenco Fleet Services • The Raymond Corp. • UniCarriers Americas Corp. • Yale Materials Handling Corp.

mmh.com MODERN productivity solution

By Josh Bond, Associate Editor Fans transform humid Nashville warehouse

Improved airflow boosts employee comfort while slashing energy costs.

t’s hard to keep a 200,000-square-foot warehouse couldn’t draw the hottest air out of the building. a comfortable temperature, and copier and print- Ricoh installed 10 new fans, all 24 feet (Big Ier manufacturer Ricoh USA’s parts center was no Ass Fans, bigassfans.com): three on the receiving exception. The Nashville facility’s east-west orienta- dock, three on the shipping dock and four above the tion captured heat from direct sunlight in the morn- central warehouse floor. In summer, increased air ings and evenings, compounding the sweltering movement makes employees feel up to 10 degrees humidity that bogged down workers in the summer. cooler, and the enhanced circulation pushes hot air In the winter, heat from the overhead units rose to out of the facility through the ceiling ventilators. In the ceiling, failing to warm the employees working winter, the fans are slowed to push hot air trapped at the ground level. After installing a series of fans at the ceiling down to floor level, keeping employees throughout the facility, the company cut energy warm. Throughout the year, the fans create energy prices while improving employee comfort. savings of up to 30%. Facility managers knew air conditioning “It was a no-brainer. The sales team understood wouldn’t be cost-effective in a space with 40-foot the problems we faced and worked hard to find the ceilings and two massive dock doors that con- best placement for our fans,” says Jeff Robataille, stantly open and close. They installed several director of field operations for Ricoh. “Everyone loves standard overhead fans and two roof ventilation the fans, and they always comment on them. The units, but the results were disappointing. The fans we had before couldn’t compare, and we’re just fans created so little airflow that the ventilators thrilled with the difference the new ones have made.”

44 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN productivity solution

By Josh Bond, Associate Editor Temporary insulated wall solves problem of unused warehouse space

Warehouse creates seasonal cold storage capabilities to serve needs of owner and tenant.

endal Floral Supply is a leading supplier and to rapidly convert space to store flowers during busy distributor of fresh cut flowers in the western seasons like Valentine’s Day or Mother’s Day. KUnited States. The company sought to create a sea- “We knew that if we could create a seasonal sonal revenue opportunity with its 6,000 square feet cold storage area out of the 6,000 square feet, it of unused warehouse space. Managers knew they would increase our success of finding a seasonal needed a flexible, insulated wall solution to ensure tenant,” says Roberto Ante, operation manager at temperature control and increase or decrease the Kendal Floral. cold storage area as needed. When Driscoll’s Berries was searching for a sea- Seasonality of inventory is an ongoing space sonal distribution center during its busy summer challenge for Kendal Floral. The team began eval- months, Kendal Floral was able to accommodate uating wall solutions that could be installed and its need for a temperature- and humidity-controlled taken down quickly to effectively partition space space. In a matter of days, the space was ready for its and control temperature. The new walls (Randall new tenant and started to generate revenue. At the Manufacturing, randallmfg.com) enable the facility end of the season, the wall is taken down and stored.

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 45 MODERN productivity solution

By Josh Bond, Associate Editor Multi-facility deployment addresses complex lighting needs

Bulk warehouse facilities achieve better lighting with 50% fewer fixtures and big energy savings. After

eadquartered in Eugene, Ore., SnoTemp Cold pany can now save Storage is a family-owned warehousing and dis- in excess of 1 mil- Htribution company with more than 15 million cubic lion kWh annually in feet of climate-controlled space under management. lighting-related energy Following a series of energy efficiency upgrades, the usage and has reduced company's warehouses now consume 5 million fewer heat-related energy kilowatt hours (kWh) of electricity annually. loads on refrigeration Lighting improvements (Digital Lumens, digital- systems by more than Before lumens.com) were a major contributor to the savings, 500,000 kWh annu-

according to Jason Lafferty, vice president and gen- ally. By eliminating re-lamping and re-ballasting eral manager for SnoTemp. Lafferty says work teams events, SnoTemp has also saved more than $12,000 love it for the natural quality of light, even in areas of in annual maintenance costs. the facility that had previously been very hard to illu- With wide-open center aisles and stacked bulk minate. Maintenance teams can also modify lighting storage spaces along the perimeter—sometimes 60 behaviors without touching a fixture and currently feet away from the center line—maintaining appro- handle fewer disruptive maintenance tasks. priate light levels was difficult. With traditional “And management likes it for its ability to col- HID, HIF or HPS lighting, illuminating the vertical lect, analyze and document facility-wide energy use, stacks forced management to significantly over-light occupancy patterns and savings down to the individ- surrounding spaces. The new lights enable the rota- ual fixture level,” Lafferty says. “The lighting deploy- tion of light bars within each fixture to direct light- ment was a significant win for our organization.” ing to critical work surfaces. Lights can also turn off The intelligent LED lighting system connects or dim when no one is present and automatically the Eugene and Albany facilities, comprised of one inform a meter technician if a fault results in abnor- new-build and two retrofit installations. The com- mal energy use.

46 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN productivity solution

By Josh Bond, Associate Editor Lighting targets maintenance costs in high-ceiling facility

Including an occupancy sensor, the new system also saves more than 1 million kWh annually.

ocated in the heart of apple country in Selah, “The old fixtures just became too inefficient and Wash., Tree Top is a leading producer of apple difficult to maintain,” says Doug Owens, building Ljuice and cider as well as a supplier of fruit-based owner. “We couldn’t even find bulbs for them any- products and ingredients for the world’s leading more. With the new LEDs, the space is brighter. Our food and beverage manufacturers. By upgrading its customer is very happy with the new lighting system.” lighting fixtures, the company dramatically lowered In a one-to-one replacement, 100 of the new maintenance costs and energy usage. 160-watt LED fixtures (MaxLite, maxlite.com) were Tree Top, an agricultural cooperative, is owned installed. Owens sought to install a lighting solution by more than 1,000 apple and pear growers in the that would reduce maintenance expenses while Pacific Northwest and has eight processing loca- increasing light quality. He chose a linear high-bay tions in Washington, Oregon and California. The solution for its price-point and lumen package. In company’s vast operation in Selah spans several addition to producing the foot-candles necessary for buildings, including a 160,000-square-foot storage the space, the lighting features an occupancy sensor facility known as the Comet Building. The build- control for a facility that is in continuous operation. ing's interior was lit with 400-watt metal halide The new LED fixtures will save the Comet and T5 fixtures that required expensive labor and Building’s owner and tenant more than 1,205,000 downtime in productivity to maintain because of kWh and $114,00 in energy and maintenance costs the facility’s high ceilings. throughout their 50,000-hour lifetime. M

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 47 A SPECIAL SUPPLEMENT TO

YMS takes By Bridget McCrea, Contributing Editor

Yard management systems (YMS) suppliers are rolling FLIGHT out new capabilities and ny supply chain professional who is currently managing the incorporating advanced assets out in the yard using clipboards, two-way radios, or technology that helps mobile phones probably can’t conceive of this management task being enabled by flying drones. But thanks to advances logistics operations gain Ain technology, unmanned aerial vehicles (UAVs) flying better visibility over exactly around a yard either autonomously or with the help of a remote control are coming sooner than one might think. what’s going on in their Just ask the folks at PINC, the software vendor that yards at any time. recently introduced PINC Air, an autonomous real-time location system (RTLS) aerial robot that can survey large areas of densely packed assets for the purposes of inventory

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reconciliation and can pinpoint where a second set of eyes for opera- certain inventory is located. tions that want to gain better PINC Air is autonomous in that it visibility over the activities tak- takes off and lands from the same loca- ing place in, and the equipment tion automatically, with obstructions in located in, their yards. its flight path automatically detected Of course, yard management sys- and avoided. The drones use PINC’s tems (YMS) don’t have to be overly inventory and even security out in the RTLS capabilities and upload the technical and situated in an aerial posi- yard. The applications are offered as RTLS and video data over wi-fi upon tion to be effective and valuable. Over stand-alone entities from software ven- return to their ground stations. the next few pages we’ll explore cur- dors like PINC, come as part of larger Clint Reiser, research analyst with rent YMS adoption, show how these WMS or TMS applications, or are inte- ARC Advisory Group, sees potential systems are being put to work in the grated into enterprise resource plan- in combining drones with the manage- yard, and hear from a company that has ning (ERP) systems. ment of yard-based assets, particularly experienced positive results over the In addition to PINC, companies like for those that have expansive yard oper- five-year span that it’s been using YMS. Zebra Technologies, C3 Solutions and ations. “Basically, we’re talking about Exotrac all offer their stand-alone YMS, the development of low-cost drones that Tracking valuable yard assets while WMS providers like Manhattan serve as ‘readers’ in performing tours of As the software systems that track the Associates, HighJump, SAP and Oracle the yard to confirm where the assets are movement of trucks, trailers and other have built YMS functionalities into and that those assets are, in fact, out in assets in the yard of a warehouse, distri- their broader applications. the yard,” he says. bution center or manufacturing facility, In return for their YMS investments, Secondarily, Reiser says that the YMS fills in a critical gap left open by logistics operations typically gain bet- same equipment can be used to track traditional transportation management ter control over yard equipment as well assets in heavy manufacturing facili- systems (TMS) and warehouse man- as track assets in real time, improve ties—where high-value assets are agement systems (WMS). dock door scheduling, and reduce located outside of the four walls of the Where the latter oversees the activi- unload/wait times. And while the busi- plant—and in lay-down yards where ties within the four walls of the ware- ness case associated with YMS can be equipment is literally “thrown in piles house, and the former takes over when compelling, actual software adoption over several acres of land.” In each of trucks pull out of the front gate, YMS rates among operations remain fairly these applications, the UAVs serve as provides visibility over shipments, low. According to Peerless Research

Keeping a sharp eye on the yard or Ramon Trevino, managing 375 dock doors and a 24/7 visibility into yard truck and trailer locations using RFID inbound and outbound operation wouldn’t be possible and a global positioning system (GPS). Universal operates Fwithout a robust yard management system (YMS). five or six yard trucks to scan temporary RFID tags that are As operations manager at Universal Truckload Services assigned to inbound trailers when they check-in. The tags in Warren, Mich., Trevino is not only tracking 800 trailer are removed at check-out. visits and 500 parking spaces on a daily basis, but he’s Using the YMS, gate guards can more efficiently direct also answering to a pretty demanding customer: Ford drivers to drop locations or dock doors and provide move Motor Company. “We not only use our YMS for Ford, but requests to the yard truck drivers who use rugged touch- we also use it to manage the dunnage that’s going back screen displays to interact with the YMS. to Ford.” Since installing the YMS, Trevino says Universal has With services that include crossdocks, consolidations, been able to eliminate daily manual yard checks, reduce sequencing, sub-assembly, kitting, repacking, and return- driver wait times while trying to “locate” trailers, improve able container management, Universal implemented service times for automotive customers like Ford, decrease PINC’s Advanced YMS in 2010 as a way to increase trailer queue at the entrance to its yard, and eliminate one yard efficiency for its expansive crossdocking operation. yard truck per shift. Previously, the company was using a manual yard manage- “It manages our entire yard in terms of truck location,” ment process that relied primarily on yard trucks and two- says Trevino. “If I ever need to find a specific trailer, I know way radios. exactly where it is. The YMS represents my ‘eyes’ out in the According to Trevino, the YMS incorporates real-time yard without me having to physically be out there.”

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Group’s most recent Technology Usage vendors have good enough functionality odds that assets will get lost in the Study, just 8.3% of companies surveyed to manage those activities.” second scenario are much higher, says are currently using YMS, and of those Now, increase the number of park- Klappich, who expects RFID technol- that purchase WMS, just 3.9% cite ing spaces to 1,500 or more, says ogy to continue gaining traction in YMS YMS as the key reason for making that Klappich, and the need for RTLS-based as more of those large shippers turn to investment. systems, radio frequency identification technology to help control and manage According to Dwight Klappich, (RFID), and other advanced capabili- their expansive yard activities. research vice president for Gartner, ties becomes more prevalent. “We’re Klappich says companies that are YMS tends to come into play when seeing more and more interest in these working with “yard of yards” scenar- an operation has more than 250 park- capabilities from companies that have ios—where a manufacturer has one ing spaces out the yard. Those with big yards basically because they’re deal- yard at its plant and other, multiple fewer than that tend to “gravitate to ing with a lot more complexity.” yards at its distribution centers—are their WMS” yard management, he says. Where the operation with 200 park- also looking more closely at YMS as “When the environment isn’t too coming spaces may be working with 10 a way to manage their complex dis- plex, and when all the company needs shipping and receiving docks and 100 tribution operations. In such cases, is check-in and check-out with a guard trucks a day, for example, the one with companies may be producing wid- at the gate, or to find out the exact loca- 1,500 spaces is probably moving 100 gets at one location, sending them tion of a container, many of the WMS tractor trailers around per hour. The by truck to a DC, and then return-

“ We’re talking about the development of low-cost drones that serve as ‘readers’ in performing tours of the yard to confirm where the assets are and that those assets are, in fact, out in the yard.” —Clint Reiser, research analyst with ARC Advisory Group

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ing those vehicles back to the plant introduced an “intelligent ful- from the DC. Traditionally, logistics fillment strategy” that inte- managers and dispatchers had just a grates planning and execution single viewpoint of one yard versus functionality. He sees a con- more global visibility over multiple nection between this strategy and locations. the typical yard. “These companies would like to “JDA is looking to incorporate exe- have an enterprise view of all of their cution on the fulfillment and planning concerned,” says Reiser, who envisions yards,” says Klappich, who again side and sort of blend them with one a time when companies can lever- points to PINC as one of the software another,” says Reiser. For example, he age YMS to gain better visibility by vendors that’s making strides in this says that a company may use the appli- breaking down the silos that can exist arena. “They want to be able to drill cation to factor dock door constraints or between warehouse operations, trans- down and gain better visibility over limitations into its planning optimiza- portation networks, and yard-based demurrage charges, freight movement, tion run with a TMS. And, because the activities/assets. and other important measures across yard is strategically situated between The time horizon for this strategy, multiple yards.” the warehouse and the transportation and the potential to eke out incre- network, incorporating yard-related mental savings from it, could still be More functionality ahead constraints could help companies opti- far off for many shippers, adds Reiser. Reiser, whose firm covers the YMS mize their supply chains. “Conceptually, the idea sounds great, arena as part of its TMS and WMS “This will take things to the next but in reality, adoption will be based on coverage, says that JDA recently level as far as yard WORK ACCESS AD 1/4 PAGE 2015_MMH - ADVANCE LIFTS 2/12/15 4:03 PM Page 1

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Stop carts safely with hand- All-welded cart creates operated wheel brake multi-level layering system A new, hand-operated wheel brake is An all-welded cart is constructed to cre- offered for use on the supplier’s industri- ate a multi-level layering system for vari- al carts. The brake is applied to the two ous materials— rigid casters—either the rear caster of a including bar, four-wheel cart pipe, flats and or the middle angles in steel casters of a six- or plastic. The wheel cart—and cart is ideal for can be used staging material on carts being Powered cart offers capacity at a workstation pushed by an for picking, printing, or transporting materials to/from inven- individual or scanning and computing tory. Rolling easily on four 8-inch pheno- pulled by a tug- Equipped with an on-board rechargeable lic casters (two rigid, two swivel), the cart ger. Because it battery that runs a small label printer, has a solid steel deck in 48- or 72-inch is hand oper- scanner, tablet, laptop or LCD screen lengths. It holds an evenly distributed ated, the wheel for up to 8 hours, the mobile PowerPick capacity of 3,600 pounds and is painted brake remains offers flexible capacity for order pick- safety blue. Jesco Industries, 888-463- inactive unless applied, controlling the ing. Its lightweight aluminum frame and 1242, www.jescoonline.com. stop of larger, heavier loads effectively. shelves roll atop 6-inch rubber locking Topper Industrial, 800-529-0909, www. swivel casters that make the cart easy to Cart incorporates flow topperindustrial.com. position to maximize operator productivi- rack with wide spans and ty. Stations may be ordered with either 4- 1,000-pound capacity Adjustable-height, or 6-foot adjustable shelves that can lay A new, high-capacity mobile flow rack multi-shelf truck flat or tilt to a 7-degree angle. All models contains a diverse array of components in Offered in two sizes—24 x 48 inches and hold up 600 pounds. Newcastle Systems, different sizes, weights and shapes. Ideal 24 x 60 inches—the Little Giant adjust- 781-935-3450, www.newcastlesys.com. for movement of items from storage to able-height, multi-shelf truck comes with assembly, the 1,000-pound capacity racks either two or three 14-gauge shelves Wire shelving carts can be measure 56 x 44 x 65 inches and feature that can be bolted in place with their customized with baskets five supply levels. Each supply level has 1.5-inch lip Featuring pull out wire or plastic mesh five flow lanes with standard and flanged edges facing baskets, the Partition Store line of wire skatewheel conveyors to handle small bins up or down. shelving carts is engineered for versatility. and larger totes and boxes. Because they The bottom Shelf heights can be changed quickly and are low-friction, the skatewheel conveyors shelf is fixed. easily, add-on units can be constructed permit shallow gravity flow lane angles for The upper and dolly bases can be applications that require first-in/first-out shelves’ added to increase load repeatable container flow, and are suitable height can capacity from 800 to 1,200 for plastic returnable totes or corrugated be raised pounds. The integrated boxes. For transport, the racks ride on or lowered drawer system allows 4-inch swivel casters for easy movement, in 2.25-inch immediate and easy access with locking brakes for secure positioning increments, and their slope adjusted to to items being transported. at their destination. Creform, 800-839- level, 7- or 15-degree angles. For trans- Starter units come com- 8823, www.creform.com. port, two swivel and two rigid casters plete with two frames, four with 6 x 2-inch non-marking polyurethane cross bars, a top wire shelf, wheels are included. Load capacities full extension slides, bottom dust cover range from 167 to 229 pounds. Brennan and four, 4-inch tall baskets, two with Equipment & Mfg., 708-534-5500, brakes. Quantum Storage Systems, 800- www.littlegiant-usa.com. 685-4665, www.quantumstorage.com.

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Place parts where needed with portable storage unit any operator or part height requirement. Constructed of sturdy, industrial- Hydraulic-free, the carts do not require strength, 14-gauge steel with a powder- electric or air and only require minimal coated finish, the PartsMobile is a maintenance. Ideal for assembly line or 68-inch-tall portable storage unit that sub-assembly operations, the carts come speeds shop and assembly processes. in standard deck sizes from 20 x 20 inch- The durable es to 20 x 30 inches and hold capacities unit comes in Spring-loaded recycling up to 1,000 pounds. Verti-Lift, 502-361- two styles. The collection cart 0180, www.verti-lift.com. five-shelf model The Poly-Trux 54P-18 recycling collection offers two cart can be outfitted with an optional, removable small ergonomic spring-loaded platform that Powder coat finish parts trays, reduces bending and reaching into the now standard on 3-inch, eight S-hooks, utility truck, eases lifting and promotes heavy-duty casters three remov- complete dumping. Set inside the truck, All of the supplier’s standard 3-inch-wide, able pegs and the durable plastic platform automati- heavy-duty caster products now come heavy-duty caster wheels; the three-shelf cally rises as bottles, cans, papers, scrap standard with a black version puts more space between heavy- metal and other materials are removed. powder coat finish. duty shelves. Each shelf holds up to 200 The spring mechanism underneath is The powder coating pounds. Herkules Equipment, hidden to prevent contact. Rotationally can also be speci- 800-444-4351, www.herkules.us. molded of weatherproof, waterproof fied in a selection polyethylene, the cart stands up to long- of optional colors term, indoor/outdoor use. Features for customization. include a heavy-duty truck base con- Replacing a conven- structed of 0.625-inch painted marine tional paint process, the powder coating plywood and six industrial strength, non- provides enhanced protection against marking casters. Options include custom the elements and increases the products’ colors, permanent lettering and graphics, lifespan. It also minimizes caster mainte- covers, tow hitches and forklift safety nance requirements. RWM Caster, 800- tubes for secure cart dumping. Meese 634-7704, www.rwmcasters.com. Orbitron Dunne, 800-829-4535, www. Navigate congested recyclingcarts.com. operations with Wheel’s tread compact trailer unit composition Handling loads up to 2,000 pounds, the boosts pushing, new Pack Mule series of compact trail- pulling forces ers is offered in sizes starting at 30 x Featuring a unique poly- 40 inches and can be easily configured urethane tread compo- to unique application requirements. sition that assists in propelling a load for- Specifically engineered and manu- ward, the CC Apex wheel boosts pushing factured for towing individually or in Maximize worker and pulling force both before and during chains, the six-wheel center steer unit ergonomics with automatic rolling. The tread also absorbs vibration to can be easily maneuvered through tight height adjusting carts reduce noise and is formed in a doughnut spaces. This accommodates highly con- Auto-Hite Carts automatically adjust shape for smooth maneuverability to mini- gested work centers and distribution to place work-pieces at the optimal mize ergonomic strain. Offered in 1.25- warehouses. They are ideal for use in operator height for maximum safety, and 2-inch widths, the casters come in lean manufacturing applications. productivity and ergonomics. Spring- diameters ranging from 4 to 10 inches and Wesley International, 800-241-2869, loaded and self-leveling, the carts carry capacities from 400 to 1,500 pounds. www.packmule.com. feature a 22- to 26-inch window of Caster Connection, 800-544-8978, www. vertical travel, making them ideal for casterconnection.com.

58 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com FOCUS ON Tuggers, Carts, Casters

Start, stop and turn loaded carts with ergonomic multi-wheel caster Offered in diameters from 4 to 12 inches and in 2- and 3-inch widths, the maintenance-free TWERGO dual or triple ergonomic wheel caster has been engineered to reduce the force needed to start, stop and turn a loaded cart. All wheels rotate independently of each other. In lab testing, the device’s patented rotating mechanism reduced initial push force and turning force by an average of 25%. Features include a unique tread thick- Transport loads on ness that minimizes friction and eliminates scrubbing and sliding when turning while lightweight aluminum providing the impact resistance of normal wheels. The multiple wheel configuration is platform trucks anchored by a robust spanner, and includes a wheel hub with aluminum die-cast cores Heavy duty and corrosion resistant, a line for maximum strength. Caster Concepts, 888-972-9861, www.casterconcepts.com. of aluminum treadplate platform trucks feature five-bar tread on the entire deck to prevent load slippage during trans- Maintenance-free casters, wheels port. For convenience, the carts include The Swivel-EAZ Pro precision wheel and caster are engineered to handle sockets at each end and can be maintenance free and support limitless motion with ergonomic be equipped with one or two handles. ease of movement. Offered in widths of 2 inches and diameters Manufactured to be lightweight, the carts from 3- to 8-inches, both handle load capacities up to 1,500 per carry uniform loads up to 3,600 pounds. unit. The casters employ a three-axis system for easy pushing Their box-style frame is fitted with a non- and pulling motions in any direction while the wheel reduces floor contact pressure. marking rubber strip to protect walls, Aubin Industries, 800-324-0051, www.aubinindustries.com. and rides atop two rigid and two swivel 6 x 1.625-inch poly-on-poly casters. Vestil Manufacturing , 260-624-4330, www. vestil.com.

Easily maneuver and empty narrow-width tilt truck Ideal for use in construction and waste handling, a new heavy-duty tilt truck is built with a narrow width and includes SAVE TIME W TH CREFORM AGVs. bumpers, allowing it to fit through standard door openings and protecting finished walls. Its optimized forward-tilt angle allows easy movement into and out of tight spaces while holding long objects safely in the cart, while a dump strap Get lean by eliminating labor-intensive manned tuggers, forklifts or carts. makes them Creform can help you automate your in-plant warehouse and production floor easy to empty. material handling. Our bolt-on AGV drives automate pipe & joint built carts and heavy-duty welded frame carts or just a few BST undercarriage AGV tuggers Manufactured can mobilize an entire fleet of carts. From simple back-and-forth operations to of light gauge plant-wide systems, Creform can do it all. steel, the cart is durable and maneu- On time. Just in time. All the time. Saving time. Take a minute to give us a call. verable. In between use, integrated stacking plates allow multiple carts to be stacked on top of each other. Valley Craft Industries, 651-345-3386, www. www.creform.com • 800-839-8823 valleycraft.com.

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 59 CRE-392 4.5x4.625.indd 1 1/18/12 3:12 PM FOCUS ON Tuggers, Carts, Casters

that secures to an overhead hook hoist or forklift. The frame attaches to the companion cart with standard trunnion pins that adjust to accommodate load weights ranging from light and bulky to heavy and dense. To empty the loaded cart, the operator pulls on a lanyard to trigger a spring on the frame. This causes the cart to overturn and rotate 360 degrees for complete emptying. Once emptied, the cart easily returns to ers come in 4-, 5-, 6- and 8-inch swivel and 52-inch-tall casters an upright position for placement back rigid sizes, all with an optional brake. The tote 200-ton payloads on the ground without operator strain. 6- and 8-inch sizes allow for a leading or Weighing 8,000 pounds and tower- CECOR, 608-845-6771, www.cecor.net. trailing brake with a change wheel brake ing 52 inches above factory floors, the option. Equipped with an industry-stan- custom-engineered Colossus caster dard top plate measuring 4.5 x 6.25 inches, totes a payload of 200 tons. It features Retrofit existing parts carts the series handles loads ranging from a spring-loaded suspension system to with shear disc casters 1,425 to 2,200 pounds. Features include absorb shocks, an eight-position swivel For use in tug applications, a line of shear a dual precision ball bearing, nylon wheel lock for directional control, 7-inch diam- disc casters is constructed to reduce and zinc-plated forged steel rig construc- eter oscillating axle to accommodate damage to products, rolling equipment tion. FootMaster North America, 866- uneven surfaces, and a foot-operated and plant 362-3226, www.footmastercasters.com. braking system. To maneuver and handle floors. They the massive load, the caster incorporates feature spring- swivel construction of 32- and 18-inch- less non-linear Customize platform cart diameter flame hardened raceways and suspension to with multiple handle, rail 96 1.5-inch-diameter bearing balls. The protect worker and caster options caster rides on an extreme-duty press-on hearing by cut- Several new styles of the 2,000-pound tire measuring 36-inches in diameter by ting vibration- capacity VERSA/Deck structural foam 20 inches wide with tapered roller bear- generated platform truck system have debuted. ings. Hamilton Caster, 800-733-7655, noise of in- Customizable with numerous handle, rail www.hamiltoncaster.com. plant trailers and caster options, the cart now incor- up to 50%. Equipped with a heavy-duty porates tie-down slots in the steel-rein- caster yoke, the units incorporate an SAE forced deck to secure loads during trans- Empty heavy cart loads 1050 forged steel top plate and yoke port. Other new features include a choice with dumping frame base with integral king pin, and flame- of handle styles with wire mesh sides; For elevated, rotational dumping of full hardened raceways for shock load wear high-low handles to support materials loads, a line of heavy-duty carts can be resistance. The caster’s compact design such as drywall and plywood; and posts paired with a separate dumping frame works within the confines of conventional that accommodate long pipes, tubing mounting dimensions, allowing existing and carpet rolls. For effortless, quiet roll- parts carts to be converted. Darnell- ing over most surfaces, an optional ther- Rose, 248-917-2914, www.casters.com. moplastic rubber caster with precision bearings may be specified. Akro-Mils, 800-253-2467, Optional brake add-on to www.akro-mils.com. heavy-duty caster Manufactured with tight tolerances and constructed for extended service life, even under stressful applications, the GF series premium heavy-duty caster handles high weight capacity requirements. The cast-

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Square pallets for transport of flexible Random case erector intermediate bulk containers uses robot The Endur S7 and C7.2 reusable plastic pallets come in two Engineered for end-of-line pack- square dimensions: 47 x 47 inches and 5 x 45 inches, respec- aging operations, the new RCE tively. Used to store and transport flexible intermediate bulk robotic random case erector containers (FIBCs), or bags, in high-bay warehouses, the pal- combines a FANUC M20iA/20 lets handle load capacities up to 2,756 pounds on high racks. six-axis robot with multiple case The C7.2 was developed for transport in ISO containers; the magazines and a bottom flap S7 allows space for six 23.6 x 15.75-inch modules per loca- folder with integrated 3M tape tion, holding 20% more items than an industrial pallet or for head. The system is ideal for fulfillment centers and contract transporting kegs. Features include a choice of three or six packagers because it eliminates downtime from changeovers runners, and an open or closed upper deck that can optionally to accommodate multiple box sizes. It also removes manual, be equipped with anti-slip strips. CABKA-IPS, 314-731-0302, repetitive tasks, improving worker ergonomics. For further www.cabka.com. productivity, the machine can also incorporate technology to assign, verify or track lot or serialization numbers to cases. Combi Packaging Systems, 330-458-2886, www.combi.com.

Rugged keyboard enhances touchscreen computer For industrial applications and environments where on-screen keyboards are not ideal, the supplier now offers the iKey DU-5K-FSR completely sealed industrial keyboard. Fully resis- 1.866.643.1010 ClearSpan.com/ADMMH tant to dirt, water, oil and dust, the peripheral device features an integrated force sensing resistor and no breakable moving parts. Together, the S9000 computer and keyboard can be implemented as a fixed or mobile-mount pair that work as one cohesive unit to maximize productivity in harsh environments. Glacier Computer, 866-724-6257, www.glaciercomputer.com.

Made in the USA. Protect tablets with rugged cases Rugged ProGear Voyager cases protect Apple iPad Air and iPad mini devices. Slim and lightweight, the cases feature a layer ClearSpan is the ideal solution for of rigid polycarbonate and energy-absorbing silicon. They are your warehouSing and Storage needS engineered to military standards and formulated to protect the ensconced device from drops and shock. Features include an Up to 300' wide, at any length. Install on pre-cast or poured concrete. integrated kickstand with dual positioning for easy typing and Work-safe environment with natural lighting. Low in cost per square foot. video viewing, and silicon ridges for all-weather grip to discour- Interiors provide maximum storage, flexibility and maneuverability. age sliding. They come in two color com- binations: black/gray or pink/gray. 7-YEAR FINANCING Pelican Products, 310-326-4700, ZERO DOWN, NO INTEREST & PAYMENTS - FOR UP TO ONE FULL YEAR - www.pelican.com. Some restrictions apply

mmh.com MODERN MATERIALS HANDLING / A PRIL 2 0 1 5 61 PRODUCT Showcase

High-pressure protective packaging films 4-axis robots offered in address longer shipping, storage cycles three performance tiers Ideal for use in high-pressure applications to protect prod- For fast, precise automation, the ucts that require longer shipping or storage cycles, two new eCobra family of SCARA four-axis high-performance inflatable cushioning films have been robots provides controller-less introduced. The HC Performance hybrid cushioning films architecture in a performance- feature multiple square air chambers instead of a single large based pricing model. Offered in cell, allowing air to transfer between the individual cham- three performance tiers—Lite, bers. Two versions are offered: one engineered for high air Standard and Pro—the models address different application retention properties to protect heavy items; and a second, complexity and throughput requirements. The robots are lighter-duty version for pack- configured with 23.6- and 31.5-inch reach configurations, run aging lighter weight prod- on the supplier’s eV+ operating system, and incorporate fully ucts. The films work with embedded controls to save floor space and simplify installation. the supplier’s AirSpeed HC Applications include mechanical assembly, materials handling Versa unit that automatically and packaging. Adept Technology, 925-245-3400, inflates the rows of material www.adept.com. on-demand. Pregis, 877-692-6163, www.pregis.com. Meet GHS regulation with durable labels The CILS-8100GHS range of computer printable durable labels has been developed to meet the Globally Harmonized System Eliminate strain injuries with (GHS) regulation deadline of June hydraulic manipulators 2015. Engineered specifically Ideally suited for heavy-duty industrial materials han- for the classification and labeling of chemical drums, the labels dling applications, hydraulically powered manipulators resist solvents, chemicals, abrasion, weathering and extreme allow a worker to hold and maneuver parts weighing up temperatures ranging from -320.8°F to 730.4°F. They feature a to 1,000 pounds in pre-printed, solvent-resistant coating that allows the addition three dimensions. The and/or printing of variable data directly from a standard, in- manipulators assist house laser or thermal transfer printer. CILS International, 877- with precise materials 512-8763, www.cils-international.com/usa. handling placement while preventing strain injuries. Powered by on-demand hydraulic Leverage real-time data pumps, their throttle from monitoring systems style control facilitates To enhance preventive and predictive maintenance, the new variable speed motion Meters module for the supplier’s Computerized Maintenance to ensure precise han- Management System (CMMS) communicates directly with dling. Features include existing monitoring systems to extract, consolidate and maximum 10-foot reach radius, vertical travel of 64 inches, deliver real-time data used for alerting operators and main- and 360-degree rotation. For accurate parts handling, end tenance personnel of current issues or trends. The solution effectors/tooling are offered with vacuum-, mechanical- or provides better insight into asset condition, helping to avert pneumatically-actuated grippers. TDA Buddy, 269-349- potential failures. Additionally, information on energy usage, 8105, www.tdabuddy.com. alerts and meter monitoring are automatically gathered and consolidated for pro-active energy budget planning and savings. The solution is accessible either on-cloud or on-premise and configured for mobile devices. Dematic, 877-725-7500, www.dematic.com.

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Single conveyor platform offers Measure and weigh smaller, irregularly multiple transport shaped items with one device options With a measurement capacity up to 18 Two new conveyor mod- x 12 x 12 inches that is accurate to 0.05 els have been added to inches and a weight resolution of 0.005 the 3200 Series platform: the Flat Belt and Precision Move pounds, the CubiScan 25 dimensioning styles join the previously released Modular Belt version. and weighing system has been engi- Engineered to move medium- to heavy-sized parts pre- neered to measure and weigh smaller, cisely, the conveyors support bulk handling with flexible irregularly shaped items for distribution, layouts. Ideal for heavy-duty part handling, the Flat Belt packaging and warehousing applica- model configuration options include an end or center drive, tions. The unit integrates infrared sensing a Z-frame and a sidewall cleated belt. Providing a low pro- technology to measure smaller, individual file, the Precision Move belt conveyor platform is ideal for items as well as smaller boxed and case-pack items. Engineered assembly, manufacturing and packaging because it moves to maximize storage space and enhance cartonization methods, product accurately at specific times, distances and inter- the device can reduce the use of packaging materials to poten- vals. It includes a timing belt, integrated servo motor and tially decrease shipping costs. Accessible by a touchscreen drive, controls and mounting for the gearmotor, and in belt interface, the system includes Qbit software with menu-driven widths up to 18 inches. Dorner Manufacturing, 800-397- operator controls, data storage/transfer and diagnostics. For 8664, www.dornerconveyors.com. customization, a mobile cart and accessories—such as a portable power supply and handheld bar code scanner—may be added. Quantronix, 801-451-7000, www.cubiscan.com.

Are your wooden pallet prices through the roof? Rugged tablet computer gets an upgrade TRY LITCO’S Engineered for field professionals, the Algiz 10X 10-inch tablet INTERNATIONAL SHIPPING PALLETS •Mold and Pest Free– Clean and dry has been upgraded to run the new Windows 8.1 Pro operating •Small Sizes–24”x40” and Half Euro as low as $3.95 48”×40” system with a more powerful processor that speeds startup •Large Sizes–Domestic and Euro as low as $6.75 AS LOW AS and operation, increased software compatibility and doubled $6.75 EACH processor performance. Weighing 2.9 pounds, the device is IP65-rated and meets stringent MIL-STD-810G military standards for protection against dust, water, vibrations, drops and Meets extreme temperatures. For better wireless communications, the IPPC-ISPM 15 computer now supports 802.11 b/g/n on 2.4 GHz, 802.11ac and “Heat Treated” 802.11a on 5 GHz, as well as LTE for faster data speeds both Requirements up- and downstream, and increased overall network coverage. Handheld Group, 541-752-0313, www.handheldgroup.com.

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Collapsible Mobile computers bulk container for indoor, engineered to outdoor use resist damage A high-performance line To minimize damage in use, of rugged mobile comput- BulkStac 45 x 48-inch footprint ers can be used for indoor reusable plastic bulk contain- and outdoor applications. ers have been engineered with Compact, the computers a variety of features that optimize strength. Recessed hinges feature LED displays, Intel processors, Bluetooth connectivity on the collapsible walls connect with a concave inset for pro- for scanners and other input devices, integrated mobile broad- tection, while radii at the feet corners reduce the risk of frac- band and back-up batteries for uninterrupted operation. They ture or splitting. A one-piece base prevents fork strap break- can be attached to both heavy equipment vehicles and gas, age, while a periphery runner improves stability without the diesel or electric-powered forklifts. JLT Mobile, 480-705-4200, need for a center foot. For more usable internal cube, the www.jltmobile.com. container has a flat deck, while its overall tare weight has been reduced for easier handling and lower transportation costs. The containers come in a variety of heights and may Two-way radios enhanced for be equipped with optional access doors on all four sides for hands-free communication certain models. SSI Schaefer Systems International, 704- MOTOTRBO digital two-way radios have been enhanced with 944-4500, www.ssi-schaefer.us. a variety of new features to allow wearers to keep their hands free while remaining in touch. A text-to-speech function delivers text messages, work order tickets, channel names and other important information without disrupting tasks. For increased efficiency, automatic battery data is sent to a central database, while GPS capability allows a dispatcher to determine what’s happening and where for event-driven location updates. User- π selectable audio profiles allow workers to customize the sound of their radios based on personal preference, while a push SHIPPING SUPPLY SPECIALISTS button switches audio from speaker to headset. Motorola WAREHOUSE Solutions, 888-325-9336, www.motorolasolutions.com. ESSENTIALS

Measure chain elongation for preventive maintenance The new, intelligent CCM continuous chain monitoring ORDER BY 6 PM FOR SAME DAY SHIPPING system measures wear elongation of chains in use to warn maintenance personnel in advance if the chain needs to be replaced. Using LED indicator lights, the system indicates where, and when, preventive maintenance is needed. The system integrates quickly and easily into new chain applications or can be retrofitted in existing plants and machines without special add-on components. Because measurement is contactless, the chain drive is not CALL FOR A FREE CATALOG affected in any way; no additional deflection pulleys or supports are needed. iwis drive systems, 317-821-3539, 1-800-295-5510 www.iwisusa.com. uline.com

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Fully automated storage for small- Accurate, to medium-sized SKU counts reliable Adaptive and fully automated, the PowerStor 4000 system weighing is tailored for facilities with small to medium storage needs. in dry and wet It can retrofit to existing space to maximize density and effi- environments ciency, doubling current A new line of rugged Industrial Basic Scales delivers storage capacity in the accurate, reliable weighing in dry and wet environments. same footprint by maxi- Offered as a low-cost option to optimize processes in sim- mizing density. The sys- ple industrial applications, the scales come with stainless tem is constructed with or mild-steel weighing platforms, easy-to-read terminals modular components, and secure overload protection. Intensively quality tested, including shuttle-based the line includes basic portioning scales for fast, mobile retrieval bots, allowing it to be adjusted or repositioned food weighing; checkweighers for food and manufactur- to adapt to changing products and throughput demands. ing applications; floor scales and pallet-weighing solutions Power Automation Systems, 209-249-1616, for logistics and warehousing applications; and basic www.powerautomationsystems.com. counting scales for accurate order picking, packaging and completeness checks. Mettler Toledo, 800-638-8537, www.mt.com. Lift heavy loads with hydraulic powered equipment Combination Offered in a range of sizes and capacities, a new selection of lifter includes hydraulic lifting equipment includes loading dock lifts and scis- beam, pipe grabs sor lifts that are ruggedly constructed and easy to operate. The For lifting and movement dock lifts service a variety of trucks, vans and tractor-trailers of pipes, a combination with capacities up to 10,000 pounds. Also offered are double Rapid Ready lift beam scissor lift tables that safely lift loads is paired with AN13 series pipe grabs sized specifically for up to 73 inches, and high-capacity scis- the pipe to be moved. In addition to increasing stability sor lifts that handle capacities from for the longer lengths of pipe, the package also increases 12,000 to 25,000 pounds—making lifting capacity. Combination lifters can be created from them ideal for heavy lifting in automo- in-stock products to accommodate any length between 8 tive, aircraft and heavy machinery man- and 20 feet, or can be custom built to handle pipes up to 50 ufacturing. The equipment features feet long. Other attachments—such as roll hooks or lifting high tensile cut steel plate for long life and durability, hydraulic tongs—can also be added for specific applications. Every cylinders made of hard chrome steel with included velocity configuration is proof-tested prior to shipment. Tandemloc, safety fuses, and pivot points that use self-lubricating aircraft 800-258-7324, www.tandemloc.com. bushings. Safebilt, 800-888-0188, www.safebilt.com. classified For classified advertising, or for more information, contact: Jennifer Drevline, Label Holders 847-223-5225, Ext. 11, 800.242.3919 jenniferd@ www.aignerlabelholder.com caseyreps.com [email protected]

mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 5 65 MODERN 60 Seconds with...

Jeff Burnstein TITLE: President, the Association for Advancing Automation (A3) LOCATION: Ann Arbor, Mich. EXPERIENCE: President for eight years and has been with the association for 32 years.

Modern: Tell us about A3. Burnstein: A3 is the parent group for the Robotic Industries Association (RIA), the Automated Imaging Association (AIA) and the Motion Control Association (MCA). We represent more than 800 companies that provide automation solutions and our mission is to promote the reasons why companies should Sara Pearson Specter automate. they outsource. They also want to area is mobile robotics, where we put be closer to their markets to reduce the robot on a mobile base or create Modern : How do you sum up the delivery times. Political instability devices that have mobility. We’re state of automation today? is another factor. In fact, if you look not there yet, but that’s where we’re Burnstein: Automation is booming closer at the jobs discussion, you headed. everywhere and in all industries, have to consider that automation not just manufacturing. Companies is helping to save jobs. A lot of Modern: One of the criticisms of realize that to compete in the global companies tell us they wouldn’t be in automation in general, and robotics marketplace, they have to automate. business without automation. in specific, is that it causes job loss. For instance, China is the fastest Based on your earlier answer about adopter of robotics. The Chinese are Modern: Can you tell us more about robots saving jobs, how do you now under the same pressure around the state of the robotics market? view that issue? speed to market as everyone else. Burnstein: The market for robotics Burnstein: We believe the drop in What’s more, large companies are is growing globally. The automotive prices and advances in technology demanding great quality, regardless industry continues to be a big driver, are going to make robotics applicable of where they do business. The cost and now their Tier 1 suppliers are to many, many industries. That does of poor quality outweighs the cost of adopting robotics, too. Beyond make people concerned about the automation. that, we’re seeing a new type of jobs. What’s interesting to me is that robot emerge that can work side the unemployment rate is coming Modern : Traditionally, the by side with people. We call that down even as the sale of robotics is justification for automation has collaborative robotics. This is allowing growing. There are a record number been a reduction in labor. Is that robots to go into new environments of job openings in the United still the case? such as retail, entertainment States. We really think the biggest Burnstein: The cost of labor is one and medical. Nothing is more impediment to the growth is that part of the discussion. However, there collaborative than a robot involved in there aren’t enough qualified people are other factors today. In the United your surgery. But, it is also opening who can do these jobs. In fact, the States, we are automating to reshore robotics up for new applications in robotics industry will create jobs production because companies fear traditional markets, like final assembly for people who can install, run and losing their intellectual property when in automotive. Another emerging maintain robots. M

66 A p r i l 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com Save the Date!

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