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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING EBRAT EL ING C mmh.com YEARS ® November 2015 Warehouse/DCs INFORMATION MANAGEMENT Slotting in an omni- It’s all channel world 24 about the SHOW WRAP-UP Pack Expo Las Vegas 16 breaks records 30 business BEST PRACTICES 8 new ways to think about putaway 36 LIFT TRUCK SERIES Fleet foresight and maintenance 42 Automation Modernizations Breathe New Life and Utility into Your Aging Assets Any Make, Any Model. Dematic’s Customer Service organization brings you the industry’s largest team of engineers and technicians dedicated solely to the upgrade, enhancement and re-missioning of nearly all brands of Material Handling equipment, controls and software. Over the last 30 years, we have surgically performed thousands of Modernization projects to extend the useful life and functionality of mission-critical systems. It all starts with a no-cost engineering consultation by our experts in timeless technology. Visit www.dematic.com/modernization or call 1-877-725-7500 to schedule your consultation today! We Optimize Your Supply Chain. www.dematic.com/modernization UP FRONT BREAKING NEWS YOU SHOULD KNOW Robotics suppliers announce strategic partnership THE MOTOMAN ROBOTICS Division of Yaskawa “We are excited to partner with America, R/X Automation Solutions (RXAS) and other industry experts.” Universal Robotics have formed a strategic partnership RXAS has built custom to deliver robotic pharmacy order fulfillment systems. pharmaceutical equipment The system will provide complete verification and for 11 years, including packaging systems, pill counters validation while automatically handling a variety of and software. Universal Robotics’ artificial intelligence bottles, boxes and odd-shaped products. software complements the system’s 3D vision, enabling “Offering automated systems to the mail order, central robots to recognize a range of random items. fill and specialty pharmacy industries, as well as drug man- “This solution leverages six-axis and high-speed delta ufacturers and drug repackagers, is a natural expansion of models to bring automation to pharmaceutical applica- our automated process tools and software for the phar- tions,” said Roger Christian, vice president of business maceutical industry,” said Tim Chambers, CEO of RXAS. development and marketing for Yaskawa Motoman. Bedeschi Group acquires Dearborn Mid-West ALAN celebrates 10th anniversary Conveyor Co. THE AMERICAN LOGISTICS AID NETWORK (ALAN) BEDESCHI S.P.A. OF Padua, Italy, announced marked its 10-year anniversary at the Council of Supply the recent asset purchase of the bulk group of Chain Management Professionals’ (CSCMP) recent annual Dearborn Mid-West Conveyor Co. conference in San Diego, Calif. Dearborn is a leading provider of turn-key bulk “ALAN was founded right here in San materials handling systems for Diego 10 years ago at our annual conference utility, mining, cement, fertilizer, after hurricanes Katrina and Rita hit,” said Rick refinery and marine terminal Blasgen, CSCMP president and chief executive markets. After claiming 17th officer. “ALAN plays a critical role in saving lives place in Modern’s 2014 Top 20 and reducing suffering for disaster survivors Systems Suppliers, the compa- in the United States by engaging industry to ny recently launched a materials supplement nonprofit organizations’ logistics capabilities.” handling systems division. At the event, Dave Clark, senior vice president of Founded in 1947, the bulk worldwide operations and customer service for Amazon, group—under the new name Bedeschi Mid-West said Amazon would pledge $25,000 and match up to Conveyor LLC (BMWC)—has operations located $25,000 for all pledges ALAN received within the next 24 in Lenexa, Kan. From there it designs, fabricates hours. Less than 18 hours later, contributors had met and and installs complex bulk materials handling sys- exceeded the goal. ALAN’s goal is to now raise $100,000 tems including pipe conveyors and rotary plows. by Dec. 31, 2015. AIM honors Datalogic for AIDC innovation AIM, THE INDUSTRY ASSOCIATION for bar code, RFID, team installed a complete RTLS, the Internet of Things, NFC and mobile comput- system for processing ing, named Datalogic the winner of its 2015 AIDC Case returns from pre-stocked Study Competition. promotional displays, a This annual award recognizes those who have devel- single worker can now per- oped and delivered compelling solutions that contribute form what had been a labor- to the growth and advancement of automatic identifica- intensive process requiring tion and data capture (AIDC) technologies. seven people. The Datalogic case study centered on an AIDC solu- “This project is a perfect example of how organiza- tion for e-commerce retailers. Datalogic’s automated tions around the world are looking beyond how existing scanning portal was initially designed to accelerate the technologies have been used to show how they can be grocery checkout process, but can also identify items used for greater success,” said Mary Lou Bosco, chief placed in any orientation on a fast-moving belt. After a operating officer of AIM. mmh.com MODERN MATERIALS HANDLING / N OVEMBER 2 0 1 5 3 ENGINEERED FOR HIGH PERFORMANCE IN ALL CONDITIONS.Raymond lift trucks deliver increased productivity and efciency in cold storage applications. We replicate the harshest conditions to continually test and prove our systems work in extreme cycles of freezing and thawing. From -20° F to ambient dock areas, our trucks make the transition with minimal decline in performance. Tackle the cold with our cold storage options to keep your truck and operator productive the whole shift through. See how at raymondcorp.com/cold-storage EBRAT EL ING VOL. 70, NO. 11 C YEARS ® PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING 60 sceconds with... Abe Eshkenazi p. 66 PETER WYNN THOMPSON/GETTY IMAGES COVER STORY SYSTEM REPORT 16 It’s all about the business Distribution centers have transformed from places to store inventory to enablers of a go-to-market strategy. Here are five facilities leading the way. DEPARTMENTS & COLUMNS FEATURES 3/ Upfront NFORMATION MANAGEMENT 7/ This month in Modern 24 Slotting’s elevated place 12/ Lift Truck Tips: Cold Storage in an omni-channel world 14/ Packinging Corner: “Auto-bag” and Here’s a look at how the use of slotting solutions is evolving in “Auto-box” Technologies the omni-channel era, and how part of the answer lies in other complementary methods such as better forecast communication 48/ Productivity Solutions and flexible, WMS-directed replenishment. 62/ Focus On: Pallets SHOW COVERAGE 66/ 60 seconds with... 30 Pack Expo Las Vegas a record breaker In the 20th edition of the show, preliminary data shows a 6% increase NEWS in attendance over the record Pack Expo Las Vegas set in 2013, according to show owner and producer PMMI. 9/ How manufacturing employers are getting lean BEST PRACTICES 10/ Industrial cybersecurity market growing 36 8 New ways to think about putaway 10/ E-commerce driving DC need and storage in your warehouse for mobile technology By going beyond the “putaway to storage” mentality, warehouses and 11/ Manufacturers turn cautious on DCs can effectively speed up delivery cycles, gain shipment visibility global economic outlook, according and improve customer service. to PwC survey LIFT TRUCK SERIES 42 Fleet maintenance: Forklift foresight Disciplined maintenance programs work to replace reactive processes Modern Materials Handling® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite with predictive capabilities. 200, Framingham, MA 01701. Annual subscription rates for non-qualifi ed subscribers: USA $119, Canada $159, Other International $249. Single SPECIAL SUPPLEMENT copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 USA. Periodicals postage paid at Framingham, MA and additional mail- 52 Industry tackles omni-channel ing offi ces. POSTMASTER: Send address changes to: Modern Materials Handling, PO Box 1496 Framingham MA 01701-1496. and growth dynamics Reproduction of this magazine in Respondents are expending facility size, experiencing an uptick in whole or part without written permis- sion of the publisher is prohibited. technology use, and applying more capital expenditures to outfit the All rights reserved. ©2015 Peerless added square footage-all positive signs of continued growth. Media, LLC. mmh.com MODERN MATERIALS HANDLING / N OVEMBER 2 0 1 5 5 How much is unplanned production downtime actually costing you? Measure Accurately. An SDI MRO Supply Chain Evaluation can save your operation millions – no exaggeration. Lost productivity, expedited freight, emergency maintenance personnel – production downtime was costing one company up to $20,000…per hour. Look into an SDI MRO Supply Chain Evaluation. The only cost is a commitment of time, on both our parts. We urge you to explore this complimentary – and potentially revolutionary – opportunity. Today. Let’s get started. Schedule a pre-evaluation consultation now. The supply chain sdistart.com works best when [email protected] it all works together THIS MONTH IN MODERN ® 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 Innovation trend validated [email protected]