The Home Depot Builds an Omni-Channel Supply Chain 18

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURINGEBRAT EL ING C

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YEARS

February 2015 The Home Depot builds an omni-channel supply chain 18

BIG PICTURE The new role for supply chain technicians 26 EQUIPMENT REPORT Conveyor/Sortation: Fixed path to a flexible future 34 INFORMATION MANAGEMENT Advanced WMS meets mid-market ERP 42 SPECIAL REPORT ProMat show planner 46

Scott Spata, vice president of supply chain direct fulfillment, The Home Depot Dematic presents . . . VNA Automated Guided Vehicle Solutions

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Booth #1203 UP FRONT BREAKING NEWS YOU SHOULD KNOW

Dematic acquires SDI Group Europe DEMATIC GROUP global order fulfillment offerings in apparel, retail and ANNOUNCED THE acquisition e-commerce markets. of FSU Investments Limited, Headquartered in Royston, UK, SDI Group Europe which holds a majority stake provides components for order fulfillment including in SDI Group Limited (SDI pouch sorters, pusher sorters, bomb bay sorters, garment- Group Europe). Dematic also on-hanger technology, tilt tray/carton sorters and related announced its intention to services. Its proprietary sorter bag technology improves make an offer for the remaining share capital. the efficiency of returns management by enabling both The purchase of SDI’s garment-on-hanger and flat hanging and flat goods like shoes, toys, books and mobile sorter technology is intended to expand Dematic’s phones to be carried on the same system.

Wynright acquires certain software Honeywell acquires assets from Blue Sky Logistics DataMax-O’Neil for $185 million HONEYWELL HAS SIGNED A DEFINITIVE agree- WYNRIGHT CORP., A COMPONENT of Daifuku North ment to acquire Datamax-O’Neil, a global manu- America Holding Co., announced the acquisition of certain facturer of fixed and mobile printers that are used assets of Blue Sky Logistics, a business intelligence software in a variety of retail, warehouse and distribution, and consulting solutions company. and health care applications for $185 million. The The acquisition is intended to acceler- transaction is expected to close in the first quarter ate growth in warehouse control system of 2015. (WCS) applications. “The addition of Datamax-O’Neil to our port- The software provides real-time visibility folio underscores our continued commitment to around labor, inventory, transportation strengthen product offerings in the estimated $1.5 and purchasing, among others. Wynright billion global bar code printing segment,” said will integrate the Insight suite of products John Waldron, president of Honeywell Scanning & into its WCS software, which is designed Mobility. “Thermal printing and media are important to bridge the gap between execution of real-time activities components of our strategy to offer customers in the warehouse and warehouse management systems or one of the industry’s broadest portfolios of rug- enterprise resource planning systems that control overall gedized mobile computers, scanners, voice-enabled operations. workflow solutions, printing, software and service Other Blue Sky Logistics solutions Wynright acquired include: capabilities.” • DataVault: a data warehouse solution that stores data The acquisition builds on Honeywell’s existing prod- and provides visibility to historical data. ucts and offers RFID, receipt, label and other specialty • Insight Scorecard: visual, real-time display of the key per- printing applications. This deal follows Honeywell’s formance indicators of an individual, department or facility. 2013 acquisition of Intermec, which essentially • Insight Mobile: the ability to access business intelligence doubled the company’s revenue in the scanning and solutions from a mobile device. mobility segment.

RMT Robotics is now Cimcorp in North America RMT ROBOTICS IS NOW Cimcorp Automation, a manufac- Cimcorp is also a leading global turer and integrator of turnkey robotic gantry-based order supplier of advanced warehouse control fulfillment and tire handling solutions. Canadian-based RMT and manufacturing execution software. Robotics joined the Cimcorp Group in 2010, extending The company’s combined offerings Finland-based Cimcorp Oy’s reach into North America. provide automated solutions to the tire, “The union of these brands under a single umbrella food and beverage, e-commerce, consumer goods and allows us to offer one suite of solutions across the world- postal services sectors. With more than 300 employees, wide distribution landscape,” said Martti Artama, presi- Cimcorp has delivered 2,000 robotic systems to distribu- dent of Cimcorp Oy. “We look forward to increasing the tion centers and warehouses across five continents. global footprint of the Cimcorp brand and contributing to Cimcorp Oy was acquired by Kyoto, Japan-based the North American market.” Murata Machinery (Muratec) in 2014. mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 3 Polybags, boxes, tubes, irregular shapes—dimensioned instantly. “Instantly.” iDimension In less time than it takes to read this word, Rice Lake Weighing Systems’ iDimension™ 300 calculates the dimensions of your package, flat, polybag, tube, irregular-shaped product and box with ease and incredible speed. iDimension 200 Not only does it dimension items in an industry-leading 0.2 seconds, it also integrates with conveyors, scales and shipping operations to streamline processes. With its advanced technology, iDimension captures a digital image of the package as well as bar code and OCR data. To simplify and automate dimensioning processes, visit www.ricelake.com/dimensioning.

800-472-6703 www.ricelake.com VOL. 70, NO. 2

EBRAT EL ING C

® YEARS PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

SHOW PREVIEW 46 ProMat 2015: Special show planner Scott Spata, vice president of supply chain direct fulﬁ llment, The Home Depot

PHOTO: GREGORY CAMPBELL/GETTY IMAGES COVER STORY SYSTEM REPORT 18 The Home Depot builds an 60 seconds with... omni-channel supply chain Mark Stevens The Home Depot has remodeled its supply chain in recent years, building the foundation for a new type of fulfillment center intended to blend online and in-store shopping. DEPARTMENTS & COLUMNS 23 Flexible picking processes achieve 3/ Upfront same-day order fulfillment Using conventional technologies coordinated in real time, The Home 7/ This month in Modern Depot’s direct fulfillment center supports omni-channel capabilities 14/ Lift Truck Tips: Attachments for the Eastern United States. 16/ Packaging Corner: Weighing 64/ Focus On: Rack, shelving & mezzanines FEATURES 68/ Product Showcase THE BIG PICTURE 26 The new role for supply chain technicians 74/ 60 seconds with... Today’s highly automated systems demand technicians with new skills and new training. The industry is beginning to respond. NEWS 9/ E-commerce activity driving demand EQUIPMENT REPORT for prime warehouse space 34 Moving from a fixed path to a 10/ MHI releases breakdown of ProMat flexible future registrants’ plans and buying power End-users detail the success of their new conveyor or sortation systems, each of which shrugs off the past and stares down the future. 12/ The robots are coming 13/ Study finds top CPOs expand INFORMATION MANAGEMENT gatekeeper role 42 Advanced WMS meets mid-market ERP ERP vendors who focus on the SME market seek to rival Tier 1 WMS vendors on deeper warehouse management functionality, while Modern Materials Handling® (ISSN 0026-8038) is published monthly by playing “suite card” on e-commerce and ERP foundation. Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite 200, Framingham, MA 01701. Annual subscription rates for non-qualiﬁ ed subscribers: USA $119, Canada $159, Other International $249. Single PRODUCTIVITY SOLUTION copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 50 Upward expansion promotes productivity USA. Periodicals postage paid at Framingham, MA and additional mail- and safety ing ofﬁ ces. POSTMASTER: Send address changes to: Modern Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in 52 Cloud-based enterprise software whole or part without written permis- sion of the publisher is prohibited. 54 Customized shipping materials reduce All rights reserved. ©2015 Peerless damage in transit Media, LLC. mmh.com MODERN MATERIALS HANDLING / F EBRUARY 2 0 1 5 5 Lift up Savings. Lower Costs.

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

Michael Levans Group Editorial dirEctor [email protected] ProMat 2015: Time for sound, Bob Trebilcock ExEcutivE Editor [email protected] thoughtful investment Noël P. Bodenburg ExEcutivE ManaGinG Editor he early buzz is that ProMat 2015 just now (up from 19% in 2013), 60% say that [email protected] may be one of the more active events they’re actively looking to take their busi- Josh Bond ever in its 30 years of existence. ness to a new vendor—yet another data associatE Editor [email protected] TBy “active” I’m referring to the fact that point that implies the floor at ProMat 2015 a record number of booths in Chicago next will be busy. Sara Pearson Specter Editor at larGE month will be gussied up to meet a mas- “Users are looking around, and one [email protected] sive amount of attendees who will be there can only assume that more innovation will

Roberto Michel with a specific purpose: sound, thoughtful come out of the conversations attendees Editor at larGE investment for the future. have with their suppliers at ProMat based [email protected] According to the findings of our just-con- on this data,” says research director Judd Jeff Berman cluded 2015 State of Warehouse/DC Equip- Aschenbrand. Group nEws Editor [email protected] ment Survey, an annual report conducted While the theme of more thoughtful by Peerless Research Group (PRG) across investment runs through our findings, read- Mike Roach Modern and its sister publication Logistics ers also tells us that they’re putting a more crEativE dirEctor [email protected] Management, readers have thrown away balanced variety of systems, software and the “feast or famine” rhythm of investment equipment to work—from sophisticated Wendy DelCampo art dirEctor they adhered to during the recession years. to conventional—to solve even the most [email protected] Instead, this year’s report finds that pressing challenges. Daniel Guidera warehouse and DC professionals are now A perfect example of this balanced illustration moving to a middle ground that finds them approach unfolds in this month’s System [email protected] making smarter, more deliberate invest- Report (page 18). Bond shares with us how

Brian Ceraolo ments in solutions that position them for The Home Depot has set out to completely prEsidEnt and Group publishEr long-term growth—and they’re ready to restructure its supply chain, creating a net- [email protected] shop their business around. work of DCs equally capable of handling pEErlEss MEdia, llc According to Josh Bond, our associate store replenishment, direct-to-consumer www.peerlessmedia.com editor who’s preparing an overview of the fulfillment, and store pick-up for online

Kenneth Moyes report, not only are readers getting “smart- orders. prEsidEnt and cEo er,” but they’re now measuring every invest- However, while many retailers are talking Eh publishinG, inc. ment to make sure the ROI is spot on. about multi-channel distribution centers “It’s great to see that readers are better that fill all types of orders, the retailer has MAGAZINE SUBSCRIPTIONS Start, renew or update your FREE understanding the right levels of technol- taken a different approach. magazine subscription at www.mmh.com/subscribe. ogy that they need to support their specific “They’ve created a network of fulfillment Contact customer service at: Web: www.mmh.com/subscribe volumes,” says Bond. “We’re seeing plenty centers with a singular focus on delivering Email: [email protected] of investment in automated fulfillment sys- direct-to-consumer, wherever the consumer Phone: 1-800-598-6067 Mail: Peerless Media tems and software to make it more efficient, might be,” says Bond. “For this story, we P.O. Box 1496 Framingham, MA 01701 but we’re also seeing aggressive investment focused on an entirely new type of facility in lift trucks and good, old-fashioned flow at the center of that strategy, a facility that’s For reprints and licensing please contact Nick Iademarco at Wright’s rack.” not filled with robots, driverless vehicles or Media, 877-652-5295, ext. 102 or [email protected]. While nearly 40% of this year’s re- drones, but with tried and proven solutions

ENEWSLETTER SUBSCRIPTIONS spondents tell us they’re ready to invest familiar to anyone in the industry.” Sign up or manage your FREE eNewsletter subscriptions at 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 / F e b r u a r y 2 0 1 5 7

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RETAIL E-commerce activity driving demand for prime warehouse space RECENT RESEARCH REPORT SUGGESTS RETAILERS AND warehouse and distribution space. E-COMMERCE COMPANIES ARE GOING HEAD-TO-HEAD FOR It also suggests that 60 of its current tenants are looking for big box SPACE IN LOCATIONS CLOSE TO POPULATION CENTERS. warehouses at 1 million square feet or more at a time when demand BY JEFF BERMAN, GROUP NEWS EDITOR outstrips available locations by nearly a 3:1 margin. GIVEN THE ONGOING prolifera- located in close proximity to popula- In a recent interview with Mod- tion of e-commerce and its impact tion centers. That is one of the main ern, Craig Meyer, president of JLL’s on supply chain operations, it does takeaways from recent research from Industrial Group, cited various driv- not come as a major surprise that Chicago-based commercial real es- ers for the heightened demand for retailers and e-commerce companies tate brokerage JLL. this space. (e-tailers) are going head-to-head JLL’s market data indicates rents “Technology and effi ciency have over distribution space in areas are on the rise as companies hunt for really come together over this last cycle,” Meyer said. “Retail- ers today and people on the warehousing and DC side view it as a scientifi c process from raw materials to fi nished delivered goods in a way they could never do in the past. That has to do with the ability of technology to provide visibility.” This has in turn led to hyper- effi cient, large-scale warehouses, with site selection having become very data-driven. JLL said that in 2015 roughly 171 million square feet of new distribution space is expected to be completed in the United States, which is the highest level in seven years, although Site selection for large-scale warehouses has become very data-driven, according to Chicago- it still trails the 40-year average based commercial real estate brokerage JLL. of 178 million square feet.

mmh.com MODERN MATERIALS HANDLING / F EBRUARY 2 0 1 5 9 TRADESHOW NEWS MHI releases breakdown of ProMat registrants’ plans and buying power PROMAT 2015 ATTENDEES are Chicago’s McCormick Place. registering in record numbers for As part of registration, attendees the event to be held March 23-25 at answer a variety of questions indicat-

ing their industry, product interest, Visit us at booth 2041 buying authority and spending plans. Below are some highlights from current ProMat attendee demographics: • 50% are corporate or senior management • 27% are middle management • 88% have buying power • 67% buy for distribution centers • 56% buy for manufacturing facilities • 54% buy for warehouses supporting manufacturing • 38% plan on spending more than $1 million over the next 18 months • 83% are coming to see new products • 58% are attending to network and learn. ProMat attendees are looking for: • Conveyor and sortation equip- Fast, accurate order fulfillment ment (54%) • Lift trucks (53%)

> Fully automated systems for parcel and postal central hubs • Racks, shelving and storage equipment (52%) > Automated logistics and material handling solutions for warehouses and • Automation equipment and distribution centers systems (44%) > Full service operations and maintenance solutions • Ergonomics/safety equipment (43%) • Packaging/shipping solutions (40%) The faster and more accurately a facility processes customer orders, the higher This year’s event comes as organizer customer satisfaction will be. This makes order picking one of the most controlled logistics processes and one which greatly impacts overall supply chain productivity. MHI marks its 70th anniversary. The Vanderlande offers a full range of picking solutions, including goods-to-person, association’s involvement in the supply zone, batch, as well as automated case, tote and pallet picking systems to meet the demands and challenges of any fulfillment operation. chain, materials handling and logistics industries began in 1943, and evolved > vanderlande.com from efforts to support American troops in World War II. But it was not until 1945 that it was incorporated as the not-for- proﬁ t Materials Handling Institute. “I consider MHI to have been my

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P.O. Box 808 | 9404 Ooltewah Industrial Drive | Ooltewah, Tennessee 37363 USA PH. (423) 238-5700 | 1-877-7HAWKER | FAX (423) 238-6060 | www.hawkerpowersource.com P.O. Box 808 | 9404 Ooltewah Industrial Drive | Ooltewah, Tennessee 37363 USA PH. (423) 238-5700 | 1-877-7HAWKER | FAX (423) 238-6060 | www.hawkerpowersource.com godfather for more than 40 years, shown it is willing to grow and change independently.” and a good godfather it has been,” and expand to meet the interests For more information and to said John Hill, director of St. Onge of the members and the industry. register to attend ProMat 2015, visit Co., current MHI director at large and MHI provides the infrastructure that promatshow.com. one of MHI’s longest serving leader- enables good people to gather to get ship members. “The organization has more done than they could accomplish OPINION SERIES The robots are coming BY BOB TREBILCOCK, EXECUTIVE EDITOR

PROMAT 2015 MUCH HAS BEEN WRITTEN lately in MODEXKNAPP 2014Visit at BoothBooth #3203#6323 the mainstream press about the future of robotics. The consensus is that robots are coming, if they’re not here KNAPP.com/us already. The next frontier for our indus- KNAPP.com/usKNAPP.com/us try, it seems to me, is moving from pallet- and case-handling robots to piece KNAPP.com/us

picking robots. Based on a recent pilot

sustainable project in a drug and medical sup- intralogisticssustainablesustainable plies distributor in Rochester, N.Y., that intralogistics future may be closer than we think. intralogisticsintralogisticssustainable What’s more interesting is that the robot isn’t coming out of one intralogistics of the giants of the system integration world, but from Iam Robotics, a Pittsburgh-based start-up with roots at Carnegie Mellon. And, the pilot solution provider doesn’t involve an industry giant like From manual to fully automated goods-to-person picking and storage systems Cardinal Health or McKesson, but solutionsolution providerprovider reliability.FromFrom manual What manual does to to fully fullythis automated mean automated for you?goods-to-person goods-to-person Productivity picking increases, picking and and lower storage storage operating systems systems Rochester Drug Cooperative, a $1 outsolutionreliability. whyreliability. major What Whatcorporations does does this this around mean provider mean the for for globe you? you? Productivityconsider Productivity KNAPP increases, increases, a strategic lower lower partner. operating operating billion a year independent distributor From manual to fully automated goods-to-person picking and storage systems outout why why major major corporations corporations around around the the globe globe consider consider KNAPP KNAPP a strategica strategic partner. partner. operating out of a 55,000-square- reliability. What does this mean for you? Productivity increases, lower operating foot distribution center. out why major corporations around the globe consider KNAPP a strategic partner. Tom Galluzzo, the CEO of Iam Robotics, and his colleagues have developed an autonomous mobile piece-picking robot that can navigate its way up and down a ﬂ at rack pick zone, pick pieces from a pick location to a tote and then bring that tote to a transfer station. In a lab setting, with rogressive | strategic a robot positioned next to a shelf, rogressiverogressive | strategic | strategic Galluzzo’s robot has picked 1,100 KNAPP Logistics Automation | A member of KNAPP group | 2124 Barrett Park Drive | Suite 100 | Kennesaw | Georgia | 30144 | Phone: 678.388.2880 | [email protected] pieces an hour. In a real-world, albeit rogressive | strategic

12 F EBRUARY 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com

Untitled-1 1 1/30/15 11:19 AM hour on a sustained basis, depending CPOs have leveraged suppliers to have integrated advanced analytics on how much travel was required of co-develop new technologies for the capabilities into their procurement the robot between picks. business vs. 39% of lower performing organization compared to just 16% of CPOs. lower-performing CPOs. These top Visit mmh.com/blogs for the full post Embracing advanced technol- CPOs are also more focused on social and “The robots are coming, Parts ogy to drive higher value results: collaboration, talent development II and III.” In Part II of this series, For example, 41% of top CPOs and automating basic processes. Trebilcock writes about the development of the robot, and in Part III, he explains why Larry Doud, RDC’s CEO, is excited about the possibility of robots in his facility.

PROCUREMENT Low on miter gears Study finds top Running out CPOs expand of hex bolts Need more gatekeeper role machine screws

IBM ANNOUNCED THE RESULTS of a new study that fi nds top performing procurement organizations are expanding their purview to drive company-wide innovation and top-line growth as opposed to confi ning themselves to their traditional roles as the gatekeepers of corporate spending. Order more Conducted by the IBM Institute Replenish washer supply grommets of Business Value (IBV), the “Chief Procurement Offi cer Study” analyzes responses from more than 1,000 senior procurement leaders from $1 billion-plus companies in 41 countries. These top CPOs are driving enter- What are your shelf bins telling you? prise agendas through three common initiatives: When you run out of any part, productivity plummets. That’s Focusing on the broader goals of why our shelf bins include an optional Kanban divider system. the company, not just the procure- When your primary supply runs out, the orange divider can be moved to the front, giving you access to a reserve supply and ment function: For example, top alerting you to order more. procurement organizations are nearly twice as likely to introduce new innova- Your bins will actually tell you when you need more parts. tions into the company and 1.5 times Doesn’t get any easier than that. To nd a dealer in your area, visit more likely to have infl uenced senior lewisbins.com/shelfbins leadership to enter a new market. Serving as a conduit for innovation from strategic partners: The study showed that 92% of high- performing procurement offi cers feel they can add value to external stakeholder relationships as opposed to 68% of under performers. To that end, 52% of high-performing

mmh.com MODERN MATERIALS HANDLING / F EBRUARY 2 0 1 5 13 LIFT TRUCK TIPS

Attachment suppliers and users learn new customs Following demand for rapid prototyping and increased sophistication, attachment design evolves from catalog orders to solution development.

By Josh Bond, Associate Editor

ift truck owners today benefit from a large variety of options when it comes to customizing a piece of equipment to suit their specific appli- Lcation. More features than ever are available to target needs for performance, productivity, efficiency and ergonomics. But when an application demands an attachment like a paper roll clamp, many assume they are stuck with standard models and specifications. After all, a slightly longer learning curve and a bit of shrinkage are surely less expensive than a fleet of customized attachments. Aren’t they? “Not so,” says Martin Boyd, global product manager for Cascade Corp. “We have visited many U.S. companies in the paper industry and asked them to quantify the financial impact of product damage they incur each year. More often than not, they weren’t able to provide an accurate answer. These companies knew product damage impacted their bottom line, yet accepted it as a fact of life without considering the possibilities to reduce such damage.” According to Boyd, well more than half of the North American market requires something other than a standard attachment, whether it’s a clamp that Technology integration combined with enhanced cus- simply requires a custom opening range or a highly tomer relationships are just a few of the ways attachment specialized attachment with an elaborate combination of manufacturers are addressing the ever-increasing de- hydraulic and mechanical functions. mands of materials handling customers. Today, however, In the past, an equipment owner may have been right “the materials handling market is in transformation as the to assume the process of developing a customized solu- level of sophistication is ratcheting up,” Boyd says. “Our tion could be costly and complicated. As a result of this customers’ mindsets are advancing into areas that break assumption, it’s become quite common to see operations the boundaries of typical attachment design—solutions that are using 30-year-old attachment designs. So while beyond simply providing steel and hydraulics. Clamp their operation and needs changed, their attachments force control and distribution, wireless power and com- often did not. munication systems and passive operator assist systems Customized solution development has benefited greatly are moving to become more and more common in mate- from the integration of technology, Boyd says. The turn- rials handling operations throughout the world.” around time for designing a custom attachment can be as little as 24 hours, as opposed to waiting weeks or months Josh Bond is Modern’s associate editor and can be reached for a real-world prototype to prove the concept. at [email protected]

14 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com Booth #3603 PACKAGING CORNER

Capture dimensions while weighing products, parcels With new “dim weight” pricing in place, a simple solution can help small parcel shippers collect dimensions.

By Sara Pearson Specter, Editor at Large

early every warehouse consuming, but it increases the has one or more elec- chance for errors if a worker tronic scales in place to writes down or keys in the Ncapture the weight of products wrong measurement.” upon inbound receipt and the As a more affordable alter- weight of parcels for outbound native, the company developed shipping. the CSN110 ScanTape hand- In January, dimensional held wireless dimensioning weight (dim weight) ship- device. It extends to 10 feet ping charges now apply to all like a standard tape measure, packages handled by UPS and and incorporates decoders em- FedEx. That has forced small bedded in the tape and a laser parcel shippers—who were scanner that captures the item’s previously exempt from these bar code. requirements—to now capture As the tape is extended, the the precise size of items and decoder closest to the end of parcels, explains Jerry Stoll, the item detects and captures Mettler Toledo’s transportation that dimension. Length, width and logistics market manager and height are automatically for the Americas. associated with the bar code. “Many small parcel ship- When used with a wireless pers were already using bench scale, the dimension and and portable scales to capture weight information captured by these weights; now they need a the two devices are bundled solution to also capture dimen- with the item’s bar code, an sions,” Stoll says. “The majority ideal setup for use at the point are set up to tie the captured of inbound receipt, says Stoll. weight data to the item’s bar “Because the device is wire- code for internal inventory less, it can be used anywhere,” management, or to the out- he adds. “If a facility hasn’t bound package’s bar code for been capturing dimensions shipping charges, tracking and destination information.” upon receipt, a worker can take this anywhere to measure Yet exchanging scales for a combined laser-based thousands of items, then plug it in using USB for a batch dimensioning and weighing system can be cost pro- upload to the inventory management system.” hibitive. “The average price of that technology hovers around $15,000, so many companies say: ‘we’ll just use Sara Pearson Specter is an editor at large with Modern and $5 tape measures,’” Stoll says. “Not only is that time can be reached at [email protected].

16 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com

MODERN system report The Home Depot builds an omni-channel supply The Home Depot has remodeled its supply chain in recent years, building the foundation for a new type of fulfillment center intended to blend online and in-store shopping.

By Josh Bond, Associate Editor

“Would you like to pick this up in the store tion processes as fulfillment, regardless or have it delivered?” of how it meets the customer. “In fact, we prefer to take the ‘e’ out he Home Depot asks each of its online of e-commerce and just call it com- shoppers this seemingly simple question. merce,” says Scott Spata, vice president The process of building a distribution of supply chain direct fulfillment for The network to satisfy the answer has taken Home Depot. “A high number of in-store the better part of six years, and there is transactions start online, where we can still work to be done. The transformation drive customers to the store armed with is not a matter of simply accommodat- all the information they could need. Ting growth of the e-commerce channel, Alternatively, they might want to see and which, although it’s the fastest-growing touch a product in a showroom before segment, still makes up only a small part ordering a specific size or color online. of the company’s overall sales. However the customer wants to transact, Instead, having recognized the cus- we’ll make it happen on the back end.” tomer value of online product research The latest addition to the company’s and inventory visibility, Home Depot has network is the direct fulfillment center restructured its supply chain to integrate (DFC), designed to support omni-chan- the experiences of online and in-store nel capabilities like direct-to-consumer shopping. That restructuring included fulfillment and store pickup for online the development and deployment of orders. Home Depot worked with an a network of distribution centers for integrator (Intelligrated, intelligrated. store replenishment and, more recently, com) to build one DFC in California, direct-to-customer fulfillment. Home one in Georgia, and a third due to come Depot prefers to think of all its transac- online next year in Ohio. Inside the

Photography by Peter Wynn Thompson/Getty Images

18 F EBRUARY 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN system report supply chain

Scott Spata, vice president of supply chain direct fulfillment for The Home Depot, at a new kind of facility in Locust Grove, Ga.

mmh.com MODERN MATERIALS HANDLING / F EBRUARY 2 0 1 5 19 MODERN system report

Pickers are agnostic as to whether an item is bound for a single-line or multi-line order.

In turn, these facilities dissemi- nate items through the rest of the company’s network. Spata says the economies of scale have dramatically improved logistics costs both into and out of the RDCs, and suppliers are better able to manage production runs. “Once the product enters the RDC, flow-through is processed almost entirely in the same day,” Spata says. “Instead of a less-than- truckload hub to last-mile delivery, we can do that even faster with the core network.” newest DFC in Locust Grove, Ga., took stock management responsibilities Upon arrival at the RDC, product an assortment of light automation and away from individual stores and placed might be crossdocked and allocated conventional picking processes are them with a centralized inventory and to stores based on real-time demand. coordinated in real time with a goal of replenishment department. same-day order shipping. What truly The company was ultimately sets the facility apart is a warehouse able to achieve 99% inven- control system that synchronizes order tory in stock in the stores fulfillment activities. on top-selling SKUs while This system ensures the compo- improving inventory turns, nents for a multi-line order arrive at the but not before it took a hard right packing area in close proximity to look at its supply chain. one another and balances the workload Replenishment turned out to at single-line pack stations and multi- be the catalyst for DC trans- line, light-directed put walls. Although formation. the DFCs are the spearhead of Home “If you move to a just-in- Depot’s response to the omni-channel time replenishment model, revolution, they would not be possible then you need a supply chain without a massive remodeling of the that can support those activi- company’s supply chain. ties,” Spata says. “We could have gone with a traditional Supply chain transformation stocking DC, load it with It began in 2007, when Spata says safety stock, then start drop- Home Depot’s direct-to-store distri- ping orders and shipping out bution model was very decentralized. truckloads. We decided to Each store was tasked with ordering, take it one step further.” replenishing and managing inventory, Instead of stocking a lot which consumed as much as 60% of of domestic product, Home store labor. Depot built a series of what “There was so much work that took it calls rapid deployment associates away from the customers,” centers (RDCs). Suppliers Spata says. “We thought it would be and vendors no longer ship great if we could turn all that labor into thousands of orders to Home customer-facing hours.” Depot stores, but create 18 The supply chain team set about aggregate orders bound for A variety of storage media facilitate access to building a replenishment algorithm that 18 North American RDCs. inventory, which doesn’t stay still for long.

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The shipping dock benefits from the coordinated arrival of orders big and small.

knew such a facility would buy online or pick up in store capa- need to take on faster-moving bilities, the math suggested three SKUs that were going vendor- regional DFC locations. direct in addition to a longer tail of slower-moving SKUs Inside the four walls as merchants complement Think of this supply chain remodel- in-store inventory with a ing project in three phases. Phase one more diverse range online. As involved the creation of centralized Home Depot began working replenishment. Phase two saw the The DFC is prepared to address a surge in on this initiative, they dubbed build-out of Home Depot’s RDC distri- conveyable items, non-conveyable items or both. the new facilities direct ful- bution network for store replenishment. fillment centers, or DFCs. The company’s new DFCs are the third Spata says the speed of replenishment While designing a new type of facil- phase, targeted squarely at meeting the is greatly improved, so that even if a big ity built for speed, Spata considered e-commerce challenge. The most chal- customer comes into a store and buys his existing brick-and-mortar foot- lenging aspect of the three new facili- all of a particular SKU, the total time print. With more than 2,000 stores ties was the complete uncertainty of it spends out of stock is much less than in the United States, each with about their future activity. before RDCs. 35,000 SKUs, geographically located “The beauty of the RDC build was The new RDCs are a valuable com- in just about every major metropolitan that we already knew the SKUs and plement to the company’s legacy net- area, the new DFCs could leverage attributes of what people were buying work of DCs, which often included store inventory with omni-channel in stores. We knew how to run that antiquated infrastructure and materials algorithms to greatly improve speed play,” Spata says. “For the DFCs, we handling equipment. Because the older of delivery or pickup of goods based had to build tremendous flexibility for DCs were not geared toward speed of on the customer needs in an intercon- what we would get, which was entirely processing, online orders might ship nected environment. unknown. We knew what we had for in one to three days at best. Spata As a result, Spata’s team chose a e-commerce volume at that time, but began looking at solutions that could target service level from DFCs of no we also knew we would double, triple enable an entirely new facility design to more than two-day parcel delivery or quadruple that in coming years. This achieve same-day shipping—not to be to 90% of e-commerce customers in is not just growth, but hypergrowth.” confused with same-day delivery—of the United States. Leveraging store- The uncertainty, combined with orders from a Web site or in a store. He stocked SKUs for same-day pickup of the dimensional irregularity of home

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improvement products, led Spata away “The shopping experi- from an investment in heavy automa- ence often starts online, and tion. “We just don’t have enough flow of we’re seeing that it drives small, slow-moving products to justify footfalls in the stores,” Spata shuttles or a goods-to-person solution,” says. “But that approach also he says. “At least not yet.” However, the decreases the burden on DFC facilities are large: At 1.1 million floor space inside the stores. square feet, the Locust Grove facility is Instead of a huge assortment not even the biggest. Inside are proven, of appliances in the show- state-of-the-art technologies including room, we can offer a much conveyor systems, voice-directed batch deeper selection online. picking, RF scanning for picking and Most importantly, the supply putaway, light-directed put walls, and chain allows customers to about 17 different storage solutions. transact how they want to.” “A vanity is a lot different than a drill This includes returns bit, but although product is on average and reverse logistics. Home much bigger and bulkier than in a tradi- Depot offers “buy online, tional e-commerce site, we still handle pickup in store,” and “buy plenty of smaller items,” Spata says. online, ship to store,” but “We want to be ready no matter which Spata says the “buy online, category grows the fastest.” return to store” option is In evaluating potential workflows for consistently atop customer the new DFCs, Spata’s team looked at satisfaction data. “The idea a number of models. “Are we going to that they can go to any store pick an order to a tote so it has to travel Waves are dropped based on a certain number of and get credit for something the whole building? Or, do we bring the orders, not stores. they bought online is the No. order together at the end? There are 1 thing they love about our pros and cons with both,” Spata says. parcel products in one to two days for customer service,” he says. “Then we had to complement con- regionally stocked SKUs instead of The fastest-growing segment is veyable orders with bulk floor space, three to five days. At the same time, customers who want items delivered since the non-conveyable play is just as the facility’s pick, pack and ship costs to them. Spata says Home Depot has important for us.” are already better than expected in the always offered “deliver from store” for The team decided on a consolidation short time since implementation. walk-in customers, but the company approach where single-line and multi- is working to build out the capability line orders might be picked from pallet Taking the ‘e’ out of e-commerce to “buy online, deliver from store.” flow rack, pallet selective rack, piece- Spata emphasizes that Home Depot’s “Omni-channel is about starting to pick modules or bulk storage before DFCs and e-commerce approach are look at global inventory,” Spata sug- they are conveyed to a pack station not a discrete channel, but part of an gests. “Using stores as fulfillment (single-line orders) or married together interconnected retail environment. centers is an interesting idea, but at at put walls (multi-line orders). Multi- When stores, Web sites, DCs, RDCs the same time fulfilling in a store is line orders that include both non-con- and DFCs are unified, customers have probably the highest cost model to do veyables and conveyables are married a range of options. that. They are not designed or staffed together in the shipping area. Spata A customer visiting the Web site like a DC.” says this design leverages the vertical simply to confirm an item is in stock If the customer chooses free ship- cube of the building while preserving before heading to the store can also see ping because they can wait five days for the flexibility to reassign labor and react the product’s location in an aisle and the delivery, Spata says it often makes to seasonal and daily peaks. shelf. After researching a vanity online, the most sense to fill the order in a DC. As compared to its traditional DCs, the customer can visit the store and ask But if the customer says they need it in the new facilities achieved a 50% for one to be delivered to a home or job one day, it might be better to ship from improvement in speed of order process- site. Or, the customer might select a the nearby store. In either case, more ing. This also halved the time of stan- model in the store and order a different saving and more doing have become dard delivery to customers, who receive color online or through a store kiosk. the power of The Home Depot. M

22 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN system report

Flexible picking processes The Home Depot achieve same-day order Locust Grove, Ga. NETWORK SIZE: More than 70 DCs in the U.S., fulfillment including 18 rapid deployment centers and three new direct fulfillment centers (DFCs) Using conventional technologies coordinated in STORES SERVICED: 1,977 stores in the U.S. LOCUST GROVE FACILITY SIZE: 1.1 million square feet real time, The Home Depot’s direct fulfillment PRODUCTS: Home improvement and restoration center supports omni-channel capabilities for materials SKUs: 25,000, with a potential of 50,000 to 100,000 the Eastern United States. STAFF: Two shifts, seven days, with more than 300 associates working multiple staggered shifts By Josh Bond, Associate Editor

ome Depot’s supply chain placed online. While a relatively small or multiple-SKU pallets. Full pallets swings into action in response part of the business, e-commerce volume receive internal labels and are taken off Hto the following simple ques- could quadruple in coming years, so the to pick locations (2, 3, 4, 5) or selective tion presented to online shoppers: DFCs have been designed for flexibility. rack (6) in reserve storage. Mixed-SKU Would you like to pick that up at the Inside the company’s new DFCs, convey- pallets are depalletized onto carts. The store or have it shipped somewhere? able and non-conveyable items are pro- carts resemble Gaylords with collapsible Depending on the answer, the com- cessed with a mix of light automation and shelves on each of three sides. The carts pany’s 70 distribution centers, 18 rapid an assortment of picking techniques that can receive and stack in a denser capac- deployment centers, three new direct enable real-time response. ity than on a pallet, and their contents fulfillment centers (DFC) and legacy Receiving: Inbound trailers are are primarily directed to forward pick buildings will direct product to the identified as either imported or domes- areas before any remainders are pallet- customer’s chosen destination on their tic inventory. The yard management ized in reserve storage. schedule, whether it’s the next day system (YMS) routes the trailers to the Putaway/replenishment: Putaway (when possible) or next month per the appropriate half of the dock for receiving is done with carts and pallets. An asso- customer’s request. (1) or to the yard. ciate scans the label on each pallet, or The concept of the DFC is the lat- Incoming loads are either single-SKU the cart’s license plate, and is given a est addition to the company’s network. Consisting of three new regional locations working in tandem with legacy buildings to serve the entire country, the Receiving 1 facilities are focused on filling orders 9 Value- added Selective services rack Bulk floor 6 7 Bulk floor Receiving 1 Carton flow storage storage module 2 7 3 2 10 Pallet flow Non-conveyable module Carton flow 4 module 1 packing 5 Bin shelving 12 Bulk floor 7 Selective module Less-than-truckload sorter storage rack 8 Shipping/packing sorter 6 9 Value-added 13 11 Shipping services Pack station mezzanine over sorter

mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 23 MODERN system report

task and drop area. Most carts are received directly to carton flow pick modules (2, 3) or bins (4), where the associate scans product into each location. Replenishment personnel Pick Modules also take carts into reserve storage (6). Well-cubed but larger items, like bathtubs, can only be stacked two or three high, so are stored in racks. But large items that can stack 14 to 16 feet high are stored in a bulk area (7). The bulk areas also house pick locations. Order fulfillment: Orders are allowed to pool overnight, and when a wave drops, the first step is the creation of replenishment tasks based on those waves. Pickers begin their work Pallet Rack 30 to 60 minutes after that, and packers follow shortly after- Push Back ward. There are several picking processes, depending on the order profile and where the items are stored in the facility. Drive In Rack Picking conveyables and non-conveyables: Every type of pick module has reserve locations. Fast movers are kept in pallet flow modules (5) where a pallet or two may be depleted each shift. Pallet flow is replenished either by move- BOOTH #1512 ments from reserve rack (6) or from a bulk floor area (7) that flanks the pallet flow module. Pickers are voice-directed in the pick modules or use RF for all bulk locations. Unlike picking for store deliveries, where ... waves are dropped based on a certain number of stores, waves are dropped based on a certain quantity of orders. The system looks at the name to trust! the status of packing stations and builds waves to maximize flow through the facility while minimizing bottlenecks. For more than 70 years, whether you need a The pick module consists of three levels of pallet flow and warehouse organized with pallet rack or a large carton flow, with a spiral conveyor on the end. Totes are routed distribution center configured with multiple only to areas where picks are needed. Each level is indepen- systems of high density storage and multi-level dent, so levels can be deactivated to save energy or can be ser- pick modules, RIDG-U-RAK is the name to trust. viced without disruption to other levels. The spiral conveyor Trust RIDG-U-RAK with your next project leads to a merge at the sorter (8). Pickers cluster pick at each SKU location, picking as much • One of the largest rack manufacturers as needed for each wave. The picker is agnostic to whether • Project management and installation services each item is bound for a single-line or multi-line order. • Full array of storage system solutions The facility also offers some value-added services (VAS) (9) • Unparalleled innovation, design that can drive some variations in product flow. Items are occa- and application experience sionally routed to an in-house photo studio that captures images for catalogs. Other VAS areas include key cutting, custom blind cutting, and paint mixing. A picker might pick a special order blind inside the pick Full Line module, which will convey it to a divert lane on the ground Selection Guide level and convey it to the VAS area. In this case the blind is & More ready to be cut per the customer specifications, and instead of sending processed items back to a packing station, VAS orders are packed out at these locations to avoid passing open tasks to another group. Non-conveyables (10) are batch picked and taken to a stag- Toll Free: 866-479-7225 ing location before they are loaded onto outbound trailers (11). www.ridgurak.com If part of a multi-line order, the item is married together with its conveyable counterpart and moved to the loading area. Putting/consolidation: Single-line orders are conveyed to 24 pack stations on a mezzanine . Multi-line orders are RE 0 (13) G. #515 processed through light-directed put walls. For instance, a tote Selective Pallet Rack • Drive-In • Push Back • Flow • Pick Modules Cantilever • Stacker Cranes • Roll-Out Shelving • Seismic Base Isolation 24 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN system report System suppliers

INTEGRATION, WAREHOUSE CONTROL SYSTEM, CONVEYOR, SORTATION, the appropriate sized box, and inserts the carton and puts it onto a takeaway PUT WALL, PICK-TO-LIGHT, PACKAGING: dunnage. In some cases a shipping label conveyor to the sorter (8), which will Intelligrated, intelligrated.com is affixed directly to the product, and divert to parcel lines or further down to WAREHOUSE MANAGEMENT & YARD MANAGEMENT SOFTWARE: Manhattan a couple of stations are configured for the less-than-truckload (LTL) line (12). Associates, manh.com heavy repack tasks like toilets that need Cartons are then married with any non- VOICE PICKING: Vocollect by Honeywell, foam and boxes marked fragile. conveyables in the order and loaded vocollectvoice.com After it is packed, the associate seals onto trucks. M RACK & PICK MODULES: Frazier Industrial, frazier.com LIFT TRUCKS: The Raymond Corp., raymondcorp.com MOBILE COMPUTING & BAR CODE SCAN- NING: Motorola Solutions, motorolasolutions.com ACCUMULATION CONVEYOR FOR FLOOR- LOADED PARCEL LINES: Nestaflex, flexmh.com with 20 cordless power drills destined for 20 single-line orders is routed to one of the single-line pack stations. The tote is scanned at the pack station area and one drill is packed for each of the orders. An identical tote bound for multi-line orders is routed to the put wall area. There, the associate on one side of the put wall scans the incoming tote. Lights then identify the right put wall cubby for each of the 20 drills. The associate repeats that process with the next tote. The first item of a multi-line order might sit in the put wall for a few minutes before it is married to remaining items, but the process is designed to flush put walls completely at least hourly. Once all of the items for an order have been put to the wall, a light indicates to the associate on the other side of the put wall that the order is ready to pack. On the inbound side, as many as two pickers at a time deposit their clusters of SKUs into one of 40 cubbies per put wall. When volume is lower, the “putter” might also move to the other side of the put wall and assume the role of packer. The facility’s 12 put walls can consoli- date 480 multi-line orders in each wave. Packing/shipping: Because picking methodologies are synchronized to the put walls and pack areas, shifts are staggered so that receiving starts early but the facility’s pack stations are busiest later in the day as the last orders come in and the trailers prepare to close. Once a single-line or multi-line order is complete, a packer scans the tote con- taining a completed order, is directed to

mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 25 THE BIG PICTURE Where Business Meets Materials Handling

The new role for supply chain technicians Today’s highly automated systems demand technicians with new skills and new training. The industry is beginning to respond.

erhaps you’ve seen the Safelite com- shirts and black slacks, Safelite’s tech- mercials while channel surfing. Sure, nicians look more like customer ser- By Bob Trebilcock, Executive Editor the auto glass repair company touts vice reps than mechanics. And, maybe its technical abilities and competitive that’s the point. In today’s world, tech- prices. But the stars of the commer- nicians and mechanics are the face of cials are amiable certified technicians the company to the customer and not Pwho promise to come to your home, just some Mr. Fix It. place of business or Something similar is happening in even a vacation spot the world of automated materials han- to get you back on the dling systems and lift trucks. Today’s road. They’ll even send systems are more complex than ever; you an e-mail with the meanwhile, a lift truck is outfitted name, photo and cre- with software and sensors as sophisti- dentials of the techni- cated as a commercial airliner and is cian who is going to expected to remain in service almost give you a hand. Forget as long. It is no longer sufficient that a the stereotypical grease technician be good with a screwdriver monkey of days past; and a wrench. For today’s supply chain neatly groomed and technician, technology and mecha- dressed in crisp red golf tronics is part of the skill set.

26 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com Industry leaders have ramped up their internal training programs to meet the growing demand for supply chain technicians.

themselves in a professional manner builds a level of trust that you can’t rep- licate just with an account manager calling on the customer.” The same is true when it comes to automated materials handling systems, where technicians need to be “a combination of Mr. Goodwrench and Henry Kissinger,” says Mike Kotecki, senior vice president of customer service for Dematic. “They have to have communi- cation skills on the fly, be able to follow up with written communications and have the diplomatic skills to develop an open, honest and candid relationship with the customer.” As a result of these changes, systems providers, start-ups and lift truck manu- “Technicians have to understand combination of special skills to keep facturers are putting more emphasis on software and PLC logic and not just complex materials handling systems recruiting, training and retaining supply mechanics,” says Roger Olle, direc- and equipment operational: supply chain technicians. They are also spawn- tor of technical services for Daifuku chain technician. ing industry efforts to develop a national North America. Increasingly, they also The new skill set goes beyond famil- certification for supply chain techni- have some level of post-high school iarity with technology. Like the Safelite cian (see p. 28). The goals are to define education. “As recently as three years technician, supply chain technicians are the skill set required, create awareness ago, about 30% of our technicians central cogs in the customer service eco- of the job, and to attract people to the had a technical school or university system. “We have a saying that we win a industry at a time when there is a short- degree,” Olle adds. “Today it’s about customer through the sales function, but age of skilled, trained technicians. 70% and we train them extensively on keeping them is the result of our ability our systems before we send them out to service the fleet,” says Pat DeSutter, Beyond the tool belt to a client site.” vice president of fleet service and after- Just how important are supply chain For that reason, a new term is market for Yale Material Handling Corp. technicians to a systems integration and emerging to describe someone with the “A technician who consistently presents distribution company? At Associated

mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 27 THE BIG PICTURE Where Business Meets Materials Handling

As automated systems become more complex and rely more than ever on PLCs, sensors and computers, technicians require a new set of skills.

and the industry faces going forward,” Romano says. Indeed, the U.S. Bureau of Labor Statistics projects a need for 120,000 new technicians by 2020. Meanwhile, a study conducted in May 2013 by the National Center for Supply Chain Technology Education estimated that Supply Chain Solutions, one of the represent about half the employee base there are some 204,000 supply chain largest lift truck dealers in the coun- and a significant amount of company technicians in the field now, and proj- try and the parent company of sup- revenue, says CEO Mike Romano. ects an additional 61,000 new jobs ply chain consulting firm Peach State “I think the shortage of technicians is within the next 24 months. Better yet, Integrated Technologies, technicians one of the critical issues our business these are high-paying jobs.

Certifying the supply chain technician For more than three years, the National Center for Supply Chain Technology Education has been developing a national certification for supply chain technicians. A standard may be ready by year’s end.

If your organization is hiring an indi- two of the National Center’s partners vidual with a bachelor’s degree in in this effort. electrical engineering, you have a The first step, a definition, is already good sense of what the potential can- in the works. “A supply chain techni- didates covered in school. The same cian represents the intersection of can’t be said when it comes to hiring a traditional industrial mechanics with supply chain technician. information technology,” says Steve While the auto industry looks for Harrington, industry liaison for the cen- technicians with an ASE (automotive ter, which is located at Norco College service excellence) certification—and in Norco, Calif. “When the certification the lift truck industry often reaches is finalized, an employer will know that out to ASE-certified technicians— a candidate has a baseline or founda- ees in the area. there is currently no corollary for the tional skills in these functional areas. As the program continues to materials handling industry. “If you’re There will be uniformity.” expand, one of the next important a systems integrator or a retailer To develop the center, Norco steps is to finalize the components of with a job opening, what do you call College partnered with other com- the certification. Training and certifica- that position?” asks Daniel Stanton, munity colleges with expertise in tion will be at two levels. MHI’s vice president of education and technical education, including Oakton Level one will include the skill sets professional development. “Is it an Community College in Des Plaines, Ill.; required to work on conveyor systems, installer, a mechanic, an electrician? Sinclair Community College in Dayton, robotics, sensors, optics, mechanical You and a competitor may be look- Ohio; and Tacoma Community College drive systems and lower level program- ing for the same thing, and calling it in Tacoma, Wash. mable logic controllers (PLCs). something different.” The group received a grant from Level two will include lead or super- That is one of the reasons the the National Science Foundation in visory personnel, including proficiency National Science Foundation is fund- August 2011. Over the past 3.5 years, in welding or PLCs. The certification ing the National Center for Supply the National Center has worked to will be ANSI accredited, and MHI is Chain Technology Education to develop educational instruction, con- currently developing the test materials. develop a standardized curriculum tent and resources and data that can “The timeline is not set by the cen- for community colleges and technical be used as a resource for other educa- ter,” says Colleen Molko, the center’s schools that can lead to a national cer- tional organizations that want to launch executive director, “but I would be sur- tification. MHI and the Manufacturing a supply chain technician program, prised if we don’t have the whole certifi- Skill Standards Council (MSSC) are assuming there is a need for employ- cation process launched within a year.”

28 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com Several drivers are behind this growth, according to Colleen Molko, the center’s executive director. One is the tremendous increase in e-commerce—companies continue to automate to manage the cost of labor- intensive each picking; the re-shoring phenomenon, which is seeing manufacturers build highly automated plants to mitigate higher U.S. labor costs; and the ability to use automation to address ergonomic and safety issues. And it’s not just retailers and their suppliers that are automating; so are automotive, pharmaceutical, food and beverage, consumer packaged goods, aerospace and durable goods manufacturers. The shortage is exacerbated as the experienced technicians currently in the field retire while the industry is invis- ible to millennials, who represent the potential pool of talent for the next gen- eration of technician. “One of the things we struggle with is making individuals who are in technical schools aware of the opportunities in our industry,” says In the lift truck industry, the sales department may win a new customer, but the Pat Huebel, the national training and level technical skill and customer service is key to keeping a customer. customer center operations manager for Toyota Material Handling USA. for this emerging field. paid more than engineers.” The same is true for materials han- For example, Hedges has been Ryan adds that Intelligrated is dling equipment and systems providers. able to leverage his parent company’s partnering with Columbus State “The biggest challenge is obtaining, train- 40-year history of providing technical Community College in Ohio to develop ing and retaining them,” says Jeff Hedges, service to its customers in the mail pro- talent. “Many of the people we’re bring- president of OPEX Material Handling. cessing industry, which uses the same ing in are in their 40s and 50s and are Finally, there simply aren’t the same mobile robotic technology that is cen- starting a second career,” Ryan says. number of technical programs as in tral to OPEX’s automated storage and “They have some technical skills, but the past because young people have goods-to-person solution. more importantly, they’re used to deal- shunned industrial education. “A lot of “We’re able to springboard off the ing with stress and communicating with community colleges shut down their team we already have in place across the customers in a professional setting.” technical programs over the last 10 country that is trained in maintaining our A number of best practices are years,” says Kieran Ryan, director of field iBot technology,” Hedges says. “However, emerging. service for Intelligrated. “There’s really a as we install more systems, we have to Recruitment: One of the chal- void that we’re all trying to fill right now.” continue to build on that base.” lenges the industry faces is getting in Meanwhile, the competition for front of potential technicians, given Recruit, train and retain available technicians is growing. that materials handling hasn’t always As the competition for talent grows, “In some respects, our industry is been on the radar. “In our industry, the industry’s focus is on recruiting, competing with our customers for tal- there is a shortage of top talent,” says training and then retaining supply ent,” says Intelligrated’s Ryan. “We’ve Dematic’s Kotecki. That may call for chain technicians. Meanwhile, MHI, had instances where a large retailer looking outside of the traditional uni- the industry association, is partnering has offered our technicians $5 an hour verse, such as competitors. “The mili- with the National Science Foundation more than they’re currently making tary and community colleges are great Center for Supply Chain Technology because they can’t find people, and breeding grounds for this,” he adds. Education, to develop a certification in some rare instances, they’re getting Dematic is not alone in that assess-

mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 29 THE BIG PICTURE Where Business Meets Materials Handling

ment. Romano says that Associated has developed relationships with technical schools that serve as feeders for its organizations. “We will hire a seasoned technician where appropriate, but we try to develop and train our technicians from scratch when possible,” he says. At the same time, the National Center for Supply Chain Technology Education has become a resource for community colleges and technical schools in areas where there is a large warehousing, distribution and manufacturing presence looking to launch programs. As the competition for talent grows, the industry’s focus is on recruiting, In the lift truck industry, Toyota is training and then retaining supply chain technicians. finalizing a technician recruiting video that service managers can take to tech- University of Northwest Ohio, where Intelligrated, for instance, assumes nical schools and military recruiting the company sponsors a class in lift that a new hire has some technical abil- events in their areas to bring awareness truck maintenance. ity. For that reason, new hires begin their of the industry. Meanwhile, compa- Training: The most interesting devel- training in customer service. nies like Crown have developed rela- opment, and possibly the most significant “I’ve told new hires that if they can’t tionships with technical schools with from the technician of the past, is the present themselves well and communi- automotive training programs, like the emphasis on a technician’s people skills. cate with the customer, they can’t get into

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©2015 FORTE THE BIG PICTURE Where Business Meets Materials Handling Companies mentioned the door,” says Ryan. Similarly, Crown on top of the changes in its technicians’ in this article puts its technicians through its customer lives and to offer opportunities to move ASSOCIATED SUPPLY CHAIN SOLUTIONS, associated-solutions.com care training program to learn how to within the company when appropriate. CROWN, crown.com interact with customers, the parts depart- “Some of our top engineers used to carry DAIFUKU NORTH AMERICA, daifukuNA.com ment, the sales department and the a tool box,” he says. DEMATIC, dematic.us rental department before they are given The concept of a career path is INTELLIGRATED, intelligrated.com the keys to a customer service van. also key at other organizations. At MANUFACTURING SKILLS STANDARDS At the same time, in an industry that Associated, for instance, Romano says COUNCIL, msscusa.org is booming, many technicians are getting his organization makes a commitment MHI, mhi.org their training through a combination of to offering technicians 40 to 80 hours NATIONAL CENTER FOR SUPPLY classroom and on-site, hands-on experi- of training a year to advance their skills; CHAIN TECHNOLOGY EDUCATION, ence. “We have a number of projects going pay for performance; and opportunities supplychainteched.org on around the country,” says Hedges. to advance to supervisory and manage- OPEX MATERIAL HANDLING, opex.com Retaining: Given the competition for ment roles, such as a team leader and SWISSLOG, swisslog.com talent, the biggest challenge the indus- a field service leader. “You can advance TOYOTA MATERIAL HANDLING USA, try may face today is companies keep- from an apprentice to a fork lift techni- toyotaforklift.com ing technicians once they have been cian to an automated system technician YALE MATERIAL HANDLING CORP., yale.com recruited and trained. into management,” he says. “By definition, technicians are a Systems integrators and lift truck who kept something running in a ware- pioneering and nomadic breed,” says providers say that at the end of the day, house,” says Kotecki. “Now, the actions Kotecki, meaning that it’s not uncommon the emphasis on technicians is driven of a technician impact the ability of a for them to move on to greener pastures, by new customer expectations, as well guy sitting on his couch and ordering especially in a job that can be repetitive. as the expectations of their customers. something over the Internet to get his Kotecki says that Dematic strives to stay “In the past, a technician was a guy order the next day.” M

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Moving from a fix ed End-users detail the success of their new conveyor or sortation systems, each of which shrugs off the p past and stares down the future.

By Josh Bond, Associate Editor onveyor and sortation technologies have certainly not lacked innovation through the last century, and they will likely continue to serve an integral role in the evolution of materials handling going forward. You could argue the inputs of the last decade have altered the route of that evolution. The Ctechnologies veer toward smart solutions working closely and in real time with neighboring conveyor sections, equipment, people, product and systems of all kinds —while still striving for better productivity, reliability and efficiency. Whether meeting food requirements like the distributor in our first story, bridging buildings like the manufacturer in the next, or shifting paradigms like the craft brewer in the last, each of these case histories foreshadows the future of conveyor and sortation systems. For operations of any size, this window into what’s coming is a welcome break from uncertainty and should lengthen the ability of each to establish a long view.

34 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN equipment report

path to a flexible future Food producer ensures sanitary conditions for new packaging line An assortment of conveyor solutions disassembles in seconds to allow for easy cleaning and sterilization.

very day, thousands of pounds of ment must be carefully controlled. weigh containers of mushrooms. Since Emushrooms are picked and pack- Mushrooms are then picked according the application called for the conveyors aged from Monterey Mushroom’s to size and maturity and hand-sorted to be used both before and after mush- Loudon, Tenn., facility and delivered into baskets. The entire process takes rooms are wrapped and packaged, dif- throughout the southeastern United about seven to eight weeks from com- ferent levels of sanitary requirements States. A recent renovation included post to picking mushrooms. were needed in the conveyor system. a new packaging line using sanitary The facility renovation conveyor to handle product before and began two years ago with after it is packaged. With a focus on plans to add new dry stor- ease of maintenance, the system now age space, a new cooler, achieves optimal uptime through 16 additional docks and rede- hours per day of continuous use. signed packaging lines for The company grows all of its improved efficiencies. As mushrooms—including white, por- part of the new packag- tabella, organic and a variety of spe- ing lines, the company This new cialty mushrooms—indoors in one installed a mix of nearly 30 conveyor system of 47 growing rooms. These rooms, different sanitary conveyors can be rapidly measuring about 90 feet long by 30 (Dorner Manufacturing, disassembled feet wide, are filled with six levels of dornerconveyors.com). and reassembled, growing trays. The company controls The conveyors are part boosting the all aspects of production, beginning of a four-lane packaging efficiency of with the creation of compost as a food line, each stretching about detailed daily source for the mushrooms. After the 50 feet in length. Several maintenance. compost is placed in trays, pasteur- weight-checking stations ized and cooled to room temperature, are positioned alongside spores are planted and grow in 13 the conveyors to allow days, during which time the environ- employees to pack and

mmh.com MODERN MATERIALS HANDLING / F EBRUARY 2 0 1 5 35 MODERN equipment report

On the pre-packaged side, conveyors fastest cleaning times, we have more automated system that bridged two exist- are required to be fully washed down time for production and will achieve a ing facilities, the company enhanced the and sanitized daily; conveyors used for quicker return on investment.” operation’s safety, capacity and efficiency. moving wrapped mushrooms require Redd says the stainless steel con- Space in the company’s manufactur- a less stringent level of sanitation that veyors increase throughput and reduce ing plant had become one of the biggest can be accomplished through wipe product loss. Monterey picks and packs concerns. The building managed 750 downs and other techniques. mushrooms sometimes as long as 16 SKUs to produce up to 5,500 cases per David Redd, engineering manager hours a day. When packing is finished hour, 24 hours a day, six days a week. for Monterey Mushrooms, evaluated for the day, a sanitation crew cleans and The original setup filled the entire facility conveyor platforms designed for food sterilizes every conveyor, along with the footprint with no additional room to grow. industries, and looked for a solution rest of the facility. The conveyors were In addition, Vitale and his team that could meet various federal and fitted with belt lifters and tip-up noses wanted to automate the pallet building state regulations for safe and effective that allow easy access to all areas that to accommodate production growth. operation. need cleaning. The conveyor platforms In April 2010, Italpasta approached “We needed a conveyor platform we can be completely disassembled by one an integration partner to help stream- could quickly, easily and thoroughly person in less than 90 seconds, and the line its packaging process. The solution clean and sterilize,” Redd says. “With entire cleaning process takes just a few needed to work seamlessly with current the highest sanitation level and the minutes. M manufacturing process with minimal impact on operations. “The implementation has allowed Italpasta to double its production capa- Neighboring buildings bility, producing more with increased efficiencies,” Vitale says. “We also have connected by new automation better working conditions for staff as well as an increase in our operating and conveyor system footprint that will enable us to expand with more equipment.” Separated and bursting at the seams, two facilities Previously, product came off the get on the same page and prepare for growth. lines in the 90,000-square-foot manufacturing area before being trans- oseph Vitale’s lifelong passion for become a leading manufacturer of pasta ported to a building next door where Jfood began in his mother’s kitchen in Canada. Amid continued growth, the employees manually built pallets. In the in Bari, Italy. He founded Italpasta in company identified challenges with the 30,000-square-foot packaging area and 1989 and since then, it has grown to packaging process. By installing a new the 40,000-square-foot staging area,

Not only does the new conveyor system connect two buildings, it also strengthens connections between processes throughout both.

36 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com

MODERN equipment report

the storage of empty pallet stacks and At each station, the machines palletize also notes increased efficiencies in forklift traffic was creating employee the cartons, automatically shrink wrap tracing packaged cases and pallets, safety and food safety issues. The solu- them, apply SSCC/GS128 code labels eliminated bottlenecks and improved tion (Schaefer Systems International, and prepare them for storage until trans- employee and food safety as a result ssi-schaefer.us) automated and restruc- ferred to the distribution center. of eliminating pallet storage and tured this area. Both case and pallet Prior to system installation, Vitale heavy forklift traffic. Automation has conveyor now support automatic case could expect 800 to 900 cases per also boosted employee skill level after and layer palletizers, integrating scales, worker, per hour. That figure is now transitioning from manual labor to label applicators, elevators and sortation. between 1,800 and 2,000. Vitale more skilled work. M Italpasta had to bridge the manufacturing plant to the finished goods holding area in the neighboring building so the proposed equipment solution could Brewery’s conversion to dry- seamlessly extend the packaging process. Once construction of the bridge running conveyor taps into savings was completed, two case conveyor lines were added to directly connect the 21 New bottling conveyor delivers water sustainability lines of packaging to the case buffer and bottom line results. area, where a conveyor sortation loop sorts and stages cases for palletizing. raft Brew Alliance, a leading need of an update. By converting its After the cases are conveyed over the Cindependent craft brewing com- Redhook Brewery bottling line to a bridge, they are buffered and sent to one pany, knew the conveyor system in dry running conveyor chain and wear of four automated palletizing stations. its Woodinville, Wash., plant was in track, the operation has improved per-

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formance while eliminating the need for 111,000 gal- lons of water and 675 gal- lons of soap for lubricating stainless steel chain. “As a brewer, we have a special interest in water sustainability, but that’s just the tip of the iceberg when you convert to dry conveyor,” says Kurt Schmidt, maintenance manager for Redhook. “The real payoff comes when you stop soaking your equipment and plant with water all day long.” The changeover won’t be complete, he adds, until the pumps, plumbing and nozzles for the water spray system are removed, along with the drip pans. The changeover is part The new dry-running conveyor replaces a 12-year-old stainless steel conveyor that of a bottling line overhaul needed soap and water, which damaged sensors, bearings and the floor. NARROW AISLE

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(Emerson Industrial Automation, “Even with a partial installation, we change to the new plastic chain has emersonindustrial.com) that started have cut water use by 60%.” been done in phases. “We tear out with resurfacing the floor in December The bottling line runs 20 hours per everything down to the frame and mod- 2013. “Our floor had been badly dam- day, four days per week, typically at ify it if we think it’s necessary,” Schmidt aged from years of water puddles and 425 bottles per minute. At its fastest says. Key drive components, such as cleaning; it was eroded an inch into single-lane throughput, it runs about bearings, sensors, sprockets and gear the concrete in some places,” Schmidt 150 fpm. Bottles enter the line from drives are all replaced. The cost for the explains. “One bottling line had stain- an uncaser, while the empty cases fol- new conveyor components—inclusive less steel chain on it that was about 12 low the bottles on a parallel conveyor of everything—is about the same as years old. It needed soap-and-water to the case packer at the end. needed for an overhaul using stainless lubrication spray, which damaged The bottles are mass conveyed about steel chain, he says, and offers addi- bearings, reducers and sensors, not 200 feet, through several 90-degree tional benefits. just the floor. The steel chain builds turns, across a static transfer plate and “The radii allow lifting the chain out up slime, then spreads it around and into a combiner where they are single- of the track for easy cleaning under- requires daily washing with an antimi- filed at higher speed through the filler. neath. Typically, there’s a tab that locks crobial, all of which add to cost.” They are mass conveyed afterward the chain down so you can’t clean under The dry operation yields savings about 100 feet, nesting four to five it,” Schmidt adds. “These radii are also on energy, maintenance and damage, wide, until a combiner again single-files designed with a one-piece supply and Schmidt says, and friction is so low the bottles for the labeler. The bottles return, so there’s no gap where debris that even “dry lube” is unnecessary. are then mass conveyed 100 feet fur- can collect. The overall smoother con- “We have reduced slip hazards, energy, ther to the case packer. veying motion of this chain has reduced maintenance, water, soap and chemi- Production imperatives at Redhook downed bottles and jams, too, another cals to treat discharge water,” he says. prevent a prolonged shutdown, so the plus for operators.” Ⅺ

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mmh.com MODERN MATERIALS HANDLING / F EBRUARY 2 0 1 5 41 MODERN information management Advanced WMS meets mid-market ERP ERP vendors who focus on the SME market seek to rival Tier 1 WMS vendors on deeper warehouse management functionality, while playing “suite card” on e-commerce and ERP foundation.

By Roberto Michel, Editor at Large

nterprise resource planning (ERP) system suppliers are Klappich likens the ERP vendors’ improved WMS known for offering tightly integrated software suites for competency to how automakers have increased the qual- back-office functions like order management and finan- ity of sound systems in new cars. A few consumers today cials, but until fairly recently, they haven’t been known might still opt for custom car audio, but the majority of as leading vendors of warehouse management system new car buyers can usually find a factory audio option that E(WMS) software. That has changed, however, as the meets their needs. “In general, the major ERP vendors are biggest ERP vendors have steadily built up their WMS going to offer supply chain execution that perhaps is not and other supply chain execution (SCE) software offer- full best-of-breed in all areas, but that is good enough for ings and sales. the vast majority of companies,” says Klappich. Now, not only do the biggest ERP vendors who But just where is the cut-off point between basic often sell to large enterprises offer advanced WMS, warehouse execution and an advanced WMS, and what but a few of the ERP vendors that focus on small- to might draw a SME to an advanced WMS in the first medium-sized enterprises (SMEs) are also enhancing place? The answers to those type of questions require WMS. That’s quite a change from the WMS capability a closer examination of the WMS function sets SME- SME-focused ERP vendors used to offer, says Dwight focused ERP vendors are offering and also hinge on the Klappich, a research vice president with Gartner. complexity profile of the SME organization looking for Until relatively recently, WMS modules from SME- a WMS solution. focused ERP vendors tended to be little more than “bin “It’s not just about size, but complexity,” says Klappich. locating systems” with some bar coding support, says “You could be a mid-sized electrical parts distributor, but Klappich. This allows users to locate inventory in a store- have complicated warehouse requirements because distri- room or on a rack in a warehouse, generate a pick list bution is your business. So, you might be a $200-million-a- and execute a pick, but typically lacks the type of system- year company, but need an advanced WMS.” directed picking common to more advanced WMS, as well as rules for wave planning and wave picking. Advanced features Now this situation has changed, says Klappich. WMS can be assessed under a five-level stratification Today, the major ERP vendors have advanced WMS model spanning from simple bin tracking solutions at and many extended SCE capabilities. Additionally, a level one to advanced WMS with extended capabilities few SME-focused ERP vendors now offer WMS mod- at levels four and five, says Klappich. At level five, the ules that go well beyond bin locating. WMS also needs proven interfaces to automated materi-

42 F EBRUARY 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN information management

ERP

Daniel Guidersa

als handling systems and a track record or higher. At levels three and above, The bigger best-of-breed WMS ven- for success in highly automated facili- says Klappich, WMS includes fea- dors also offer labor management system ties. The larger best-of-breed vendors, tures such as system-directed picking (LMS), yard management system (YMS), such as Manhattan Associates, JDA and and putaway, extended rules and fea- and transportation management sys- HighJump, are on the highest strata, tures for wave management, and sup- tem (TMS) solutions. While some large while SME-focused ERP vendors were port for methods such as batch picking ERP vendors have expanded into these generally once at the lower two levels. and crossdocking. The more advanced extended SCE areas, says Klappich, There are exceptions to where ERP WMS at levels four and five also have SME-focused ERP vendors generally do vendors lie on this stratification today, capabilities such as slotting optimiza- not offer the same breadth and depth of notes Klappich, with a few mid-market tion and task interleaving, as well as LMS, YMS, and TMS functions that can ERP players having enhanced their proven interfaces to automated materi- be had from the best-of-breed providers. WMS solutions up to a solid level three als handling equipment. While complexity needs can drive the

mmh.com MODERN MATERIALS HANDLING / F EBRUARY 2 0 1 5 43 MODERN information management

WMS functional framework configure the vendor’s WMS to a DC’s Extended WMS capabilities specific processes, the work of integrating ERP’s order and inventory data schemes with WMS already has been Labor Core WMS capabilities Task done by the ERP vendor. management Receiving Picking interleaving With WMS from an ERP ven- Inspection/QA Wave management dor, says Jack Logan, a senior cus- Yard Dock tomer account executive with Epicor management Put-away Staging schedule Software, the end user organization Cross docking Packing “has everything under one roof, and Value-added Slotting Inventory management Truck loading it’s all working off the same database” services model used for ERP, which takes away Location management Manifesting the integration issues. Replenishment Cycle counting Third-party Parcel Modern integration technologies billing manifesting such as Web services has made integration to third-party packages easier, Event Performance Logan says, but going with an ERP ven- Visibility management management dor’s WMS also simplifies who to turn for support. “You only have one throat Radio Automation Voice RFID to choke, if you will, rather than finger frequency interface pointing,” says Logan.

Source: Gartner At NetSuite, a cloud-based ERP vendor which has many application partners need for advanced WMS for a SME’s ered or prebuilt integration to parcel for extended functions, the company warehouse, the size of the operation carrier systems. On the other hand, says acquired a SCE partner called eBizNET, does play a role in terms of the need for Eicher, solutions such as Microsoft AX whose WMS was built to work with extended applications, says Klappich. For now offer system-directed picking, and NetSuite’s cloud architecture, in the fall example, in a very large scale warehouse support for wave management, batch 2014. with 300-plus workers, solutions such as picking, crossdocking, and other WMS The move, says Ranga Bodla, distri- LMS have a stronger payback proposi- functions many facilities need. That’s a bution industry lead at NetSuite, is con- tion. “The bigger companies are usually change from just a few years back, says sistent with NetSuite’s strategy of hav- going to push automation as far as they Eicher, when getting that level of WMS ing in-house applications for key supply can because of scale,” says Klappich. usually meant integrating ERP to a chain management functions, while still For many mid-sized companies with best-of-breed solution. maintaining partnerships with best-of- distribution centers, a WMS from an A WMS from a mid-market ERP ven- breed vendors. “We like to provide at ERP vendor may fit the bill, agrees dor also may be capable of working well least some level of native functionality, Bruce Eicher, a managing partner with with automated materials handling solu- but we are still very partner friendly and Envista, a consulting firm that has an tions. For example, says Eicher, Envista might have three of four partners for a implementation practice for Microsoft’s helped Vincennes University Logistics given category,” says Bodla. ERP and WMS solutions. Eicher says Training and Education Center (VU Sid Geddam, former CEO for that today, WMS/SCE from a major LTEC) deploy Microsoft’s WMS and eBizNET and now vice president and ERP vendor such as Microsoft might integrate it with a pick-to-light system general manager for WMS at NetSuite, not be as deep as the best-of-the-best- and a voice picking system. The center says that with WMS now under of-breed solutions, but it’s “85% of the has a working 40,000-square-foot work- NetSuite’s wing, there is closer alignment way there with a few outliers.” ing warehouse that processes books for a of application enhancements and how For example, says Eicher, an ERP book donation organization. those might impact business processes vendor typically can’t offer a full-blown that span application boundaries. “There LMS that analyzes trends and recom- The integration factor are [WMS and ERP] features that inter- mends labor efficiencies, though its The main advantage ERP vendors can act with each other. For example, how WMS might generate some labor met- boast to prospects is that their WMS exactly does an order drop into a ware- rics. Or, the ERP vendor might have offerings are already integrated with house management system, or what hap- a TMS option, but not one with every the ERP solution. While consulting pens when an exception takes place in a possible mode of transportation cov- services may be needed to properly warehouse, and how does that impact the

44 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MODERN information management

Some mid-sized companies might be fine Getting advanced WMS from ERP vendors with WM, says Kirker, while others opt Pros Cons for EWM. In some cases, an All-in-One customer uses EWM for its main DC, Integration to ERP is prebuilt. Implementation services may still be needed to configure WMS, regardless of but WM as the WMS for smaller ware- whom you get it from, and integration houses, he says. “So it is a scalable set mechanisms such as Web services and XML of choices, including being able to scale have made linking systems easier down to the smaller side,” says Kirker. Some ERP vendors, even SME-focused Some ERP vendors may partner for vendors, now offer advanced WMS advanced WMS, so end users need to ask functionality such as system-directed picking, how prebuilt and tested the integration is, The bigger picture wave management, and RF support. and how it is impacted by upgrades. ERP vendors can also offer e-commerce modules that integrate with ERP and Some ERP vendors offer TMS modules, or The best-of-breed SCE vendors tend to have generate labor trend data from WMS. broader, deeper functions for extended solutions from there to WMS functions. For some such as LMS, YMS, TMS or slotting optimization. companies, part of the appeal of getting Some SME-focused ERP vendors have WMS Best of breed WMS/SCE vendors have more WMS from an ERP vendor is that they deployments which have integrated to experience integrating their advanced WMSs can also get an e-commerce platform automated material handling systems. with warehouse control systems and all types from the ERP vendor. As the move to of automated materials handling systems. omni-channel fulfillment intensifies, ERP vendors typically also can offer If the user organization has “must-have” this bundling might help ERP vendors. e-commerce modules, so they can bundle needs in areas like LMS or slotting, best of ERP, e-commerce and advanced WMS breed depth may outweigh any integration “With the whole omni-channel under one roof. advantage. world we are moving toward, there Source: Modern Materials Handling are many interactions happening, and ERP: enterprise resource planning; WMS: warehouse management system; TMS: transportation management system; YMS: yard management system; LMS: labor management system; SCE: supply chain execution many touch points in terms of where goods need to move,” says Bodla. “And order? These are some of the things you way to a full-blown WMS,” he says. as that complexity increases, the ben- want to build into the application suite Stein estimates about 60% of cus- efits of having all of these functions natively rather than have customers deal tomers are looking for a more advanced together within a single architecture— with on a one-off basis,” says Geddam. WMS, while 40% want a scaled-down e-commerce, ERP, and warehouse exe- Brian Stein, CEO of Syspro USA, solution. Across the board, however, cution—gets multiplied.” agrees that Web services and eXtensible Syspro’s WMS users want electronic data Of course, the best-of-breed players markup language (XML) make inte- interchange (EDI) functionality as part of still have plenty of appeal when it comes gration of ERP to best-of-breed solu- the solution. “The smaller manufacturers to mid-market companies facing complex tions less of an issue, though not every distributing to bigger companies might execution challenges. Larger mid-sized third-party vendor has these integration not need all of the advanced WMS fea- companies facing multi-mode, global methods. That’s why it’s important, he tures, but if they are selling to a GE or a fulfillment challenges, and with enough contends, for ERP vendors to vet part- Walmart, they need EDI,” he says. budget to cover integration, might opt for ner solutions to ensure they integrate SAP, while known for selling its ERP best-of-breed SCE solutions, says Eicher. easily with ERP, while offering custom- system and its Extended Warehouse “A lot of this is driven by the need for the ers a choice of more basic warehouse Management (EWM) solution to larger most advanced functions,” he says. “And, execution within the core suite, or more enterprises, also has a SME solution set if they need a lot of those, and it’s a global advanced solutions. sold through channel partners called operation, that’s what really sways things Syspro’s ERP users have multiple SAP Business All-in-One. Within this toward best of breed.” M WMS choices, says Stein. This includes program, a customer can opt for All-in- some base warehouse functional- One’s standard “WM” WMS module ity within the ERP suite, a lower-end that was SAP’s most advanced WMS Companies mentioned WMS, and an advanced WMS. Syspro offering before EWM, or separately “OEMs” the WMS solutions from a license EWM, says Richard Kirker, in this article ENVISTA: envista.com partner called CSoft, but Stein says they SAP solution manager of warehouse EPICOR: epicor.com are pre-integrated solutions that under- management solutions. GARTNER: gartner.com stand the business rules and objects in The WM module is a robust WMS, NETSUITE: netsuite.com the ERP suite. “We’re giving you mul- says Kirker, but lacks some of the func- SYSPRO: syspro tiple options of what you can use for tions available in EWM such as slotting SAP: sap.com WMS, from a simpler solution, all the optimization and labor management.

mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 45 SHOWWhere Business Meets Materials Handling SHOW HOURS Monday, March 23 10:00 a.m. - 5:00 p.m. PREVIEW Tuesday, March 24 10:00 a.m. - 5:00 p.m. Wednesday, March 25 10:00 a.m. - 5:00 p.m. Thursday, March 26 10:00 a.m. - 3:00 p.m.

ProMat 2015: Pearl of productivity

Celebrating 30 years as an industry mainstay, ProMat 2015 is set to open with more than 800 exhibitors and a comprehensive educational program. With an additional 25,000 square feet of exhibition space, this will be the biggest ProMat ever. Here’s a guide to every inch.

By Sara Pearson Specter, Editor at Large

cCormick Place South will host more than 35,000 its, Prest added. “Thanks to a combination of visitors to ProMat 2015 —the materials handling more exhibitors and larger booth sizes, we’ve industry’s premier trade show and educational vastly exceeded that. The show is essentially sold conference, sponsored by MHI. out, and we’ve filled McCormick Place South.” Attendees of the show, which is celebrating More attendees and more exhibits are to be 30 years in the industry, will find more than 800 expected as the industry continues to grow dur- Mexhibits from industry, commerce and government ing this phase of the economic recovery cycle, showcased throughout the 325,000-square-foot added Prest. “Companies are investing in pro- show floor (an increase from the 300,000 square ductivity, and productivity is what our industry is feet of exhibits at ProMat 2013). Also included all about. We make the people they employ more are four keynotes and more than 100 educational productive. sessions spread over four days. “I also think there’s also a strong desire by com- “When MHI was founded 70 years ago, it was panies to invest in automation, because it makes to promote American manufacturing,” said George companies more competitive in the marketplace,” Prest, CEO of MHI. “Today, we’ve evolved into he said. the industry that makes supply chains work, and To that end, MHI has again partnered with the ProMat has evolved over the last 30 years as well. Association for Advancing Automation (A3) and In fact, 2015 marks the largest ProMat ever.” its trade associations to co-locate with Automate MHI’s goal was 305,000 square feet of exhib- 2015. The show houses a full spectrum of automa-

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tion technologies and solutions. Registered attendees gain full access to ProMat and Automate, held across the Grand Concourse hall in McCormick Place North. Like ProMat, Automate is held just once every two years. This is the third-consecutive time that the shows will be co-located. MHI and A3 first brought the two shows together in 2011 to help visitors maximize their travel time and budget. Feedback from attendees of both shows continues to be overwhelmingly positive, said Prest. Prest anticipates that attendees will be trolling the exhibit aisles with purchase orders and project plans in hand. They’ll also be looking to get new ideas about how to improve their sup- chain software solutions, RFID, auto-ID and data collection, ply chain efficiencies in the near future and the long term, transportation management systems, manufacturing execu- he said. “We’ve heard from end users that the reason they tion systems, logistics execution systems, enterprise resource come to trade shows like ProMat is to see the equipment in planning and order management systems. action,” he said. “They can get lots of product information • The Knowledge Center: Offering resources to edu- on the Internet and see videos, but over and over we hear cate and build awareness of what the materials handling and that actually seeing the solutions in person truly helps them logistics industry has to offer the supply chain as a whole. understand how the equipment can help their operations.” Also celebrating a milestone in 2015 is MHI, which will host its 70th Anniversary Celebration on Wednesday, from Make your plan 4:30 p.m. to 7:00 p.m. in the Grand Ballroom (Room S100) Information about all ProMat-related events can be accessed of McCormick Place South. from the official ProMat app. The app offers an interactive Tickets are $50 per guest, pre-paid at ProMat Attendee map, exhibitor search, educational sessions search and infor- Registration on Level 3 of McCormick Place. Live music, mation about the four keynotes. Attendees can also access beer, wine and hors d’oeuvres are included, as is spe- their personalized agenda using the mobile app. Available cial entertainment by comedian and impressionist Frank free at the Android and Apple app stores, downloading infor- Caliendo. Caliendo has appeared frequently on “The Tonight mation can be found at promatshow.com/app. Show with Jay Leno” and “The Late Show with David To make it easier for attendees to find the solutions they Letterman,” and has a regular spot on ESPN’s “Sunday NFL need, the ProMat 2015 show floor is divided into four solu- Countdown.” A portion of ticket sales will be donated to the tions centers: Material Handling Education Foundation, Inc. (MHEFI). • Manufacturing & Assembly: Featuring automated assembly support, intelligent devices, robotics, ergonomic Keynotes address trends and safety equipment, workstations, light-rail and other This year, ProMat features four keynote addresses. The assembly assist equipment and systems for the manufactur- first runs Monday from 8:45 a.m. to 9:45 a.m. in the Grand ing environment. Ballroom, Room S100, and features Renee Niemi, director • Fulfillment & Delivery: Showcases solutions for tra- of Google for Work’s Android and Chrome Global Business. ditional or e-commerce order fulfillment, order picking and In “Transforming Your Manufacturing Business for the New packaging, third-party logistics, warehousing, distribution or Digital Age,” Niemi will discuss the increasing connections transportation. between everyday objects as appliances, watches, cars and • Information Technology (IT): Highlighting supply equipment become part of the Internet of Things. Businesses

mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 47 SHOW PREVIEW

that don’t develop innovative products quickly might miss opportunities to lead the market. Her Get free materials handling, presentation will offer suggestions about how to eady to rest your feet and fill your brain? accelerate new product initiatives and time-to- Check out one of the 100-plus, on-show floor profit using the latest digital technologies and Reducational sessions held during ProMat. tools. Learn how to improve collaboration, maxi- These free sessions are housed in 10 separate mize lean processes, and boost operational effi- theaters located on the far right corner of the ciency through organization-wide access to con- Renee Niemi exhibit hall. They run from 10:30 a.m. to 4:30 p.m. sistent, timely and up-to-date information. Monday and Tuesday, on Wednesday from 10:30 Tuesday morning, from 8:45 a.m. to 9:45 a.m. to 3:45 p.m., and on Thursday from 10:30 a.m. in the Grand Ballroom, Room S100, a.m. to 12:00 p.m. John Mackey, co-founder and CEO of Whole “The on-floor seminars are presented by Foods Market, shares “Conscious Capitalism: industry experts in material handling and logistics solutions,” said Daniel Stanton, MHI’s vice Blueprint for a New System for Doing Business.” president of education and professional devel- Mackey—who has been named “United States opment. “It’s a unique opportunity for attend- Entrepreneur of the Year” by Ernst & Young, ees to learn more from exhibitors, industry “Best CEO in America” by Institutional Investor, groups and research institutions about the latest John Mackey and “World’s Best CEO” by Barron’s—is the material handing technologies and trends.” visionary behind many of Whole Foods’ success- Topics range from best practice reviews to ful programs. Hear his insights about how busi- maintenance to metrics. Detailed abstracts of nesses can reach their highest potential while each session, with key takeaways for attend- using conscious capitalism to serve all sharehold- ees, are included on promatshow.com and the ers, including customers, employees, suppliers, ProMat app. Each theater holds 100 partici- investors, communities and the environment. pants, and it’s first-come/first-served with no standing room allowed, added Stanton. On Wednesday morning, the day’s first keynote As a preview of the types of insights to be presentation unveils the key findings of the annual found on Wednesday and Thursday at the U.S. MHI Industry Report, conducted in partnership Roadmap for Material Handling & Logistics’ with Deloitte Consulting. The “Preview of MHI George Prest Workforce Summit 2015, the publication is 2015 Annual Industry Report—Transforming sponsoring an on-show floor presentation Supply Chains” will be presented by George Prest, entitled, “How To Deal with Disruptors Affecting CEO of MHI, and Scott Sopher of Deloitte from Your Career,” on Monday. This seminar, held 8:45 a.m. to 9:45 a.m. in the Grand Ballroom, from 12:45 p.m. to 1:30 p.m., features profes- Room S100. The extensive report is the second sors and roadmap contributors William Ferrell, edition of an annual series of surveys targeting professor and associate dean of the Department supply chain end users and MHI members. Prest of Industrial Engineering at Clemson University, and Kimberly Ellis, associate professor in the and Sopher will highlight the materials handling College of Engineering at Virginia Tech. Session trends and technologies expected to transform attendees will hear about the 10 key disruptors supply chains over the next three to five years. Scott Sopher making the most significant impact on supply Wednesday afternoon, from 1:00 p.m. chains today, and the core competencies essen- to 2:00 p.m., a second keynote features tial to their future professional success. Steve Wozniak (“The Woz”), co-founder of Additionally, several industry groups will be Apple Computer, and internationally recog- presenting the latest insights into their tech- nized Silicon Valley icon and philanthropist. nologies. These sessions typically feature two Wozniak will offer his views on the latest or three panelists from different companies iPhones, smart watches and the state of tech- discussing new developments, applications and nology and risk in America. He will also share uses for the equipment represented by their group. “We always see a lot of interest and high technology predictions and investment strat- attendance levels generated by the industry egies for Big Data, robotics, automation and group sessions in particular,” Stanton said. Steve Wozniak more.

48 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com SHOW PREVIEW

supply chain education with ProMat on-floor seminars

Industry group sessions are as follows: TUESDAY • “Current Trends and Technology in Storage & Inventory MONDAY Management,” presented by Automated Storage/ • “ProMat 2015’s Newest Automated System Solutions Retrieval Systems (AS/RS), 11:15 a.m. – 12:00 p.m., & Their Impact in Warehousing, Distribution and Theater F Manufacturing Application,” presented by the • “Building Relationships, Pathways and Partnerships Automation Alliance, 10:30 a.m. – 11:15 a.m., Theater E between University and Industry,” presented by the • “ProMat 2015’s Latest Advances in Handling Equipment, College Industry Council on Material Handling Education Systems & Controls,” presented by the Integrated (CICMHE), 12 p.m. – 12:45 p.m., Theater I Systems & Controls Group (ISC), 11:15 a.m. – 12 p.m., • “Protect Your People… and Your Wallet: Safety and Theater F Guarding Solutions for the Industrial Facility,” pre- • “How AGVs Improve Safety and Flexibility at Minimal sented by the Protective Guarding Manufacturers Cost in Warehouses and DCs,” presented by Automatic Association (ProGMA), 1:30 p.m. – 2:15 p.m., Guided Vehicle Systems (AGVS), 12 p.m. – 12:45 p.m., Theater A Theater A • “Maintaining Systems for • “ProMat 2015’s Newest Maximum Uptime and Reliability,” Order Fulfillment Products presented by Conveyor & & Solutions to Improve Sortation Systems (CSS), 2:15 Efficiencies & Productivity,” p.m. – 3:00 p.m., Theater F presented by the Order • “Analytics: Big Data & Data Fulfillment Solutions Council Mining,” presented by Order (OFS), 12 p.m. – 12:45 p.m., Fulfillment Solutions (OFS), 3 p.m. Theater G – 3:45 p.m., Theater C • “E-Commerce Is Entering a • “Considerations for the Planning New Dimension. Are Your and Use of Industrial Steel Storage Conveyors and Sorters Racks,” presented by the Rack Ready for the Challenge?” Manufacturing Institute (RMI), 3 presented by Conveyor & p.m. – 3:45 p.m., Theater A Sortation Systems (CSS), • “Top 5 Ways AGVs Drive Lean 12:45 p.m. – 1:30 p.m., Efficiency and Reduce Costs Theater D in Manufacturing,” presented • “How to Deal with by Automatic Guided Vehicle Disruptors Affecting Your Systems (AGVS), 3 p.m. – 3:45 Career,” presented by the p.m., Theater G U.S. Roadmap for Material Handling & Logistics, 12:45 • “Designing Complex Integrated Systems,” presented by p.m. – 1:30 p.m., Theater F the Automation Alliance, 3:45 p.m. – 4:30 p.m., Theater F • “Rack Project Design: Resources & Frequently Asked • “Using Software to Maximize Your Order Fulfillment Questions,” presented by the Rack Manufacturing Performance,” presented by Integrated Systems & Institute (RMI), 2:15 p.m. – 3:00 p.m., Theater D Controls (ISC), 3:45 p.m. – 4:30 p.m., Theater H • “The Effects on MH Equipment Design with an Aging and Obese Workforce,” presented by the Ergonomic Assist WEDNESDAY Systems & Equipment (EASE) Council, 2:15 p.m. – 3:00 • “The Role of Education in Innovation,” presented by the p.m., Theater F College Industry Council on Material Handling Education (CICMHE), 10:30 a.m. to 11:15 a.m., Theater A • “Discover Automated Storage & Retrieval Systems (AS/ RS): Latest and Greatest Applications and Technologies at If you miss a session—or can’t decide between two ProMat,” presented by the Automated Storage/Retrieval being held at the same time—you can still view and hear Systems (AS/RS) Fixed Aisle (F/A) working group, 3:45 the content later. All of the PowerPoint Presentations will p.m. – 4:30 p.m., Theater D be captured in PDF format and synchronized in a Flash • “What Can a Moron do with Metrics?” presented by the file with audio recordings of each session. These files will Supply Chain Execution Systems & Technologies Group be posted to promatshow.com after the conclusion of (SCE), 3:45 p.m. – 4:30 p.m., Theater B ProMat.

mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 49 MODERN productivity solution

By Josh Bond, Associate Editor Upward expansion promotes productivity and safety

Mezzanine and vertical reciprocating conveyor bring once-distant processes together.

oyal Basket Trucks, based in Darien, Wisc., is between the welding and sewing departments ham- a manufacturer of basket trucks and specialty pered productivity. The new 40 x 120-foot work Rlaundry carts. Company president Thomas Carney platform is used for production, and materials and sought to increase the company’s production other supplies are stored underneath it. The VRC rates to better meet growing customer demand. moves materials back and forth between the ground Having considered adding a new wing that could and upper level. take six months to complete, the company instead The work platform now houses four sewing installed a new work platform and vertical recipro- machines, shelving and other production equip- cating conveyor (VRC; Wildeck, wildeck.com) in ment, all of which are operated by about 20 employ- just a few weeks. ees at any given time. Workers access the work “We converted 6,000 square feet of total- platform using a structural steel staircase, while the ly unused space into a productive work area,” VRC carries only materials. Carney says. “Once we considered the alternative, “We took the product transfer flow from a dis- a 12,000-square-foot building addition for about tance of about 75 feet and reduced it to virtually $500,000, the decision was easy—go for the work nothing,” Carney says. “The VRC is ideal because platform.” it now takes raw materials up to the workers and Before the project, the facility’s full welding brings finished products back down. And because and industrial sewing departments were intended there are forklifts and carts moving around the to produce orders on a short timeline, since every lower level, the danger of someone being struck is product is made to order. However, the distance greatly minimized.” M

50 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com MORE THAN A VISION

In the real world, providing an effective solution for automatic identification requires more than just one technology. With SICK you have a choice. Three technologies, one philosophy: customer needs come first. For decades, customers have recognized SICK as a pioneer in vision, a leader in industrial code reading, an RFID specialist, and an expert in connectivity and big data. Our global technology experts are specialists in your industry and are located in your corner of the world. To meet your everyday challenges, it takes more than a vision. We find intelligence is what truly makes the difference. www.sickusa.com

Visit us at ProMat! Booth 1537 MODERN productivity solution

By Josh Bond, Associate Editor Cloud-based enterprise software improves fulfillment speed and accuracy

Manufacturer uses integrated platform to strengthen connections between fulfillment and consumers.

ionel is a 114-year-old hobby train business that The cloud solution (NetSuite, netsuite.com) is includes its Lionel Racing subsidiary, which sells comprised of ERP, including inventory and order LNASCAR die-cast cars and other racing collect- management, shipping software and electronic data ibles. To improve its business performance, Lionel interchange (EDI). Gemereth adds that Lionel can moved from legacy green-screen applications to a now readily scale to periods of peak demand, such single cloud solution for enterprise resource planning as a four-week period in November/December that (ERP), e-commerce and customer relationship man- accounts for 50% of e-commerce orders for the year. agement (CRM). As a result, distribution and fulfill- Once the cloud fulfillment solution went live in ment processes were significantly improved. phases in 2010 and 2012, Lionel experienced addi- Previously, the company incurred high costs for tional savings from ending its relationship with a

manual order processing, with a risk of delays and third-party logistics provider, and has dramatically errors. Lack of automation and visibility hindered ful- reduced the risk of charge-backs for violating fulfill- fillment efficiency and business growth. Today, the ment terms with retailers. The solution’s flexibility company has improved fulfillment speed and accuracy has also helped Lionel expand into the eBay chan- from its North Carolina warehouse across multiple nel, integrating with marketplace solutions to process channels—wholesale orders from big box retailers and eBay orders. hobby shops, as well as orders from consumers at its Besides fulfillment, Lionel relies on the software e-commerce Web store. In addition, Lionel fills orders provider to power its e-commerce site, as well as that consumers place on selected retailer Web sites in financials and CRM. Compared to manual processes partnership with chains. in the previous green-screen environment, Lionel “It has given us capabilities to shorten our turn- financial and operations managers have new visibility around time for processing orders, so we can now into real-time sales, customer, inventory and supplier guarantee an order will be shipped within a 48-hour data without having to rely on IT. window,” says Rick Gemereth, vice president of infor- “The feature-rich, self-service reporting capabili- mation technology and operations for Lionel. “We’re ties have empowered our business users to do their now able to take large order volumes and process own analysis,” says Gemereth. “That’s improved our them on a timely basis.” efficiency and effectiveness.” M

52 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com Design · Realization · Service · Operation of Cost-Efficient and Ergonomic Logistics and Picking Systems

Meet us at ProMat. Booth # 2059

Phone: 847 385 6000 · [email protected] · www.witron.com MODERN productivity solution

By Josh Bond, Associate Editor Customized shipping materials reduce damage in transit

Lightweight product spacers cut damage, shipping costs and labor for manufacturer.

ndiana Vac-Form (IVF) manufactures thermo- with an increase in handling, caused more stress formed products including burial vault liners to on the corrugated and resulted in the liners settling Icustomers across the country. As business grew, together, making if difficult to pull them apart.” increased shipping distances and logistics chal- Injection-molded plastic spacers proved too lenges like crossdocking became unavoidable. After costly, but the new packaging (Laminations, lami- replacing corrugated packaging with a recyclable nationsonline.com) proved effective despite having laminated paperboard, the company ensured prod- been designed for an entirely different application. uct safety during longer deliveries. Instead of providing targeted edge protection for For years IVF shipped its liners in stacks of 20, strapping palletized loads, the lightweight material each one nested inside the other. They used pieces is placed under the lip of the overturned liners. of corrugated paperboard in the corners of the lin- “It’s strong enough to withstand the weight of the ers to keep them from settling too deep inside each other liners, so it’s working out great,” Wood says. other and creating a suction between layers. “Not only has it eliminated all the shipping and “As we began shipping our liners farther and storing problems, it has helped us save on shipping farther, we became aware that our packaging was and packaging expenses.” not up to the task of handling the harsh shipping Previously, they could stack only 20 liners per environment created by the extra miles,” says Greg skid. With the new spacers they are safely stacking Wood, co-owner of the company. “That, coupled 22 liners. M

54 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com FIND WHAT’S NEXT

See the latest manufacturing and supply chain solutions in action, in person. All in one place. ProMat. At ProMat, you can: ProMat Keynotes • Discover the latest innovations from more than 800 solution providers. TRANSFORMING YOUR MANUFACTURING • Learn about new ideas driving productivity BUSINESS FOR THE NEW DIGITAL AGE in more than 100 educational sessions. Renee Niemi, Director of the Android and • Build strong business partnerships with suppliers. Chrome Global Business, Google for Work • Network with your peers. CONSCIOUS CAPITALISM: BLUEPRINT FOR A NEW SYSTEM FOR DOING BUSINESS When you need to maximize eciency targets, streamline John Mackey, Co-Founder & CEO, your operations, speed time to market and cut costs, start Whole Foods Market by exploring what’s next at ProMat 2015. WHAT’S NEXT – ATTENDANCE IS FREE. THE FUTURE OF TECHNOLOGY REGISTER AT PROMATSHOW.COM Steve Wozniak Co-Founder of Apple & Founder, Chairman & CEO of Wheels of Zeus McCormick Place South | Chicago, Illinois March 23-26, 2015 | ProMatShow.com

Collocated with ProMat 2015 A SPECIAL SUPPLEMENT TO

DIMENSIONAL WEIGHT: Optimize packaging and save money

The explosive growth of e-commerce and the impact it has had on small package and LTL deliveries has forced carriers to turn the tables and push the inefficiency penalty back to the shipper. Bottom line: It’s time to re-think your packaging— or get ready to cut a bigger check.

By Jack Ampuja, Contributing Editor

56 F EBRUARY 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com

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t’s already clear that 2015 will be The math behind a watershed year in the pricing the process is length x of both small package and less- width x height—with all than-truckload (LTL) shipments. dimensions measured in UPS and FedEx, which dominate the inches—divided by 166. Idomestic small package market with The resulting number is more than 90% share collectively, have then rounded up to the announced that dimensional weight nearest whole number (dim weight) pricing will apply in and that becomes the January to all North American ground package’s dim weight. shipments. Shipments to Canada While dim weight pricing, which will use the international is sometimes referred to as “volumet- divisor of 139 mak- ric pricing,” has been the standard ing those shipments almost 20% more FedEx and UPS over-the-road trailers in airfreight shipments for years, the expensive. extremely light. While many trailers application moved into small package So, what’s the driver behind the move can haul more than 45,000 pounds, the ground as recently as 2007. At that to dim weight pricing? The key driver is small package carriers are struggling to time, UPS and FedEx began to apply the explosive growth of e-commerce and reach 25,000 pounds in a trailer. dim weight pricing to packages larger the impact it has had on the small pack- The previous way of billing by weight than 3 cubic feet. However, the change age delivery business. has given companies no incentive to now being implemented will apply dim Before any of us knew about make operations more efficient. To the weight pricing to all ground packages Amazon, the small package sector was contrary, the inefficiency has merely in the U.S. and Canada regardless of basically a business-to-business model been passed along to the carrier. By size. with many packages going daily to a implementing dim weight pricing, UPS So what is dimensional weight? limited number of destinations—such and FedEx have turned the tables and Simply put, shipping costs will be as an auto manufacturer shipping repair pushed the inefficiency penalty back to based on the higher of two measure- parts to its dealers. The shippers were the shipper. ments: package weight or package size. relatively efficient in their techniques So as the new pricing methodology The weight aspect does not need any and residential deliveries were not a goes into effect, efficient shippers will explanation, as everyone has dealt with major factor. see no changes in their shipping costs, this approach for years. For many, being However, today’s e-commerce ship- while those that ship lots of filler charged on the basis of package size pers are very inefficient. In fact, the and air will experience dramatic cost will be a new phenomenon that’s going typical e-commerce package is com- increases. to cost a lot of money. posed of 40% air and filler, leaving The reality of the situation is

What can companies do to prepare? Here are a few actions companies of boxes to shipment sizes. 98.2 lbs. can take to better manage dim • Replacing boxes with enve- weight charges: lopes or bags can reduce dim 45.09 lbs. • Weighing and measuring weight charges. 452.5 lbs. some outbound shipments will • Establishing box selection allow for an estimate of the cost training for manual operations that change. typically ship the wrong box 25% • Analyzing current shipping of the time. 5.6 lbs. cases may identify some that can • Shifting some volume to be downsized for lower cost. USPS, which does not apply dim 25.6 lbs. • Adding additional shipping weight to boxes smaller than 3 cases usually can increase freight cubic feet, can deliver lower cost efficiency through better matching on small boxes.

58 F EBRUARY 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com Selective Pallet Rack

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that most of the packages used by divisor than 166, dimin- e-commerce companies are smaller ishing the overall impact than 3 cubic feet, making them sus- of dim weight pricing. ceptible to the new dim weight pricing. A number of large In fact, about 75% of all business-to- companies are pro- business and business-to-consumer tected by a contract. packages weigh less than 20 pounds—a However, these com- category where dim weight is a major panies will have to deal factor. with dim weight pricing eventually since these Managing dim weight agreements will have While we won’t know for sure until expiration dates. All car- some history is accumulated, Satish riers have profit margin Jindel, president of LTL market analyst targets, and any ship- firm SJ Consulting, projects that one per falling below the profit threshold erate more than one million unique third of all small package shipments that a carrier wants to hit can expect a outbound combinations of weight and will see cost increases as a result of dim price increase at some point. cube in a year. weight pricing. And while rates are always a major For example, a company handling Shipping cost increase estimates factor in pricing, the other half of the more than four million annual combi- range from $500 million to more equation is shipping efficiency, some- nations required proprietary software than $1 billion, making this change a thing that all companies have much to assess 200 possible boxes generat- potential windfall for UPS and FedEx. more control over. Many logistics man- ing more than 800 million analyses And while there are many suggestions agers tend to focus their efforts on on the way to pinpointing a low-cost on how to combat dim weight, most pricing, but getting the right number solution. companies without significant volume and sizes of outbound boxes into an leverage simply can’t anticipate much e-commerce operation will do wonders LTL not far behind success in seeking a modification to reduce shipping costs because less The small package carriers were set in either timing or calculation of the filler and air will get shipped. to fire the starting gun on dim weight application. We’ve seen large shippers net in January, however the LTL carriers On the other hand, many large com- multi-million dollar savings by opti- aren’t far behind. The main difference panies have already negotiated more mizing packaging. But, this kind of between the two sectors is that the favorable terms on dim weight—with analysis is extremely difficult, if not LTL players refer to it as “density base some securing delays as long as a year impossible, to do manually due to the pricing,” but their intent is the same. out, while others have gotten a larger fact that many national programs gen- The National Motor Freight Classification system that has been the basis of LTL pricing since the 1930s is Real world example of “dim weight” in action by all accounts a convoluted anachro- I have a supply of inefficient rounds up to the nearest full nism, unnecessarily complex, and just boxes that sit in my office as pound, this package would bill at plain confusing. Many shippers don’t examples of companies that need 1 pound. know the proper freight classes for their major assistance in shipping effi- Under dimensional weight products or how to secure correct ones, ciency. Here is a specific example pricing, this package would come taken from that inventory. One in at 3.57 pounds (14 x 9 x 5/166) so they guess and hope carriers don’t box is comprised of two pairs of and be invoiced as 4 pounds, a identify an error. socks shipped by a 3PL on behalf 300% increase in shipping cost Pitt Ohio’s John Tillison, a veteran of one of the world’s leading sup- and 6.4 times higher than actual of the LTL business, recalls that “car- pliers of athletic footwear. weight shipped. No matter how riers used to pull aside questionable The socks weigh 3 ounces, one looks at this situation, paying while the gross weight of the for a 64-ounce shipment when pallets and support staff would put box, which measures 14.25 the items the customer has pur- the pallet on an industrial scale to inches x 9.25 inches x 4.5 inches chased weigh only 3 ounces is weigh it and then use a tape measure and contains numerous inflated not a good deal for either seller to measure length width and height.” plastic bags, is 10 ounces. Under or buyer. Once pallet cube and weight were weight-based pricing, that —Jack Ampuja known, he adds, it was easy to compute

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density and identify freight class, which president of freight audit and pay- is based primarily on density. ment services provider TranzAct, one Today, efficient LTL carriers such regional LTL carrier that’s installing as Pitt Ohio have scales attached to these density-measuring devices in each lift truck so that pallet weights its terminals “is paying for the tech- can be verified whenever desired with- nology in three weeks purely from out slowing the operation. Similarly, correctly billing shippers through savvy LTLs are investing in equipment more accurate shipment informa- that, with the aid of lasers, can mea- tion.” sure, weigh, and calculate shipment At this point, large LTL carri- density. Some of these devices are so ers such as UPS and FedEx have precise that weights and measures announced that density-based pricing can be legally certified for accuracy by is voluntary at its customer’s request. state agencies. Obviously, those shippers who are Going a step further, the measuring efficient and correctly classifying devices can also take a photograph of their freight have nothing to worry the freight and apply a date so there’s about and are readily accepting den- quickly make this their pricing standard. no question as to which product was sity-based pricing. Veteran logistics consultant Cliff analyzed and when. However, less efficient shippers are Lynch is already on record predicting Major LTL carrier YRC has previ- resisting the change. When shipment that we’ll see this change implemented ously announced installation of den- volume on density-based pricing starts before the end of the 2016. So fasten sity measuring devices in 50 of its to be a major factor—say more than your seat belts, for change is blowing in terminals. According to Mike Regan, 35% of volume—the LTL industry may the wind. Ⅺ

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Optimize product flow with those found in automated storage and pick module storage system retrieval system installations. Features Using a flow-through concept, a line of include bolted beam connections and custom-engineered pick modules—incor- frame strength to support loads in porating a lift truck aisle on one side of excess of 70,000 pounds and resist fork- the system and an order picking aisle on lift impacts. Standard columns come in the opposite side—can support complex three sizes: 3 x 3; 4 x 3 and 4 x 4 inches. picking operations and maximize facil- For horizontal and diagonal bracing, ity space. The system also incorporates fully welded tubular steel may be speci-

includes walkway support, grating, stairs and railings. The MiniMezz system doesn’t require walkway or grating and includes two rows of stacked storage cabinets, plus stairs, railings and a walking mat placed over a lower row of cabinets. Both systems can be configured to fied, and standard beam adjustability is multi-level picking with a range of mez- accommodate a facility’s space require- in 3-inch increments. To minimize debris zanine, flooring and decking selections ments and traffic patterns with aisle and dirt in sanitary applications, a version to better optimize product flow. The pick and pass-through modules, and come in with connection holes only where beams modules use a variety of pallet and carton 30- and 60-inch cabinet width openings. are located is available. Steel King, 800- flow rack choices, including push-back, Stanley Vidmar, 800-523-9462, www. 826-0203, www.steelking.com. gravity flow, selective pallet rack and stanleyvidmar.com. other storage methods, as well as conveyors. Ideal for high-throughput, high- Structural tubular pallet Expand facility volume order fulfillment and distribution rack ideal for seismic footprint with overhead operations, the installation allows prod- locations and rack- mezzanine system uct loads to be moved from pallet racks supported buildings A line of custom-engineered mez- before being broken into cartons and For storage applications involving heavy zanine systems maximizes facility pieces, where they are sent to pick areas loads, seismic locations or rack-support- footprint and increases productivity. for processing and shipment. Ridg-U-Rak, ed buildings, SK4000 structural tubular The structures feature cold-formed, 866-479-7225, www.ridgurak.com. C-channel or bar joist framing and factory-welded joist-to-stringer connections for structural integrity Modular mezzanine system and support of loads. For seismic can be reconfigured, even zones, special beam-to-column when loaded connections are used. A variety of Offered in two different models, a line of deck surface options are offered mezzanine systems can be reconfigured including concrete over composite, as often as necessary, even when fully heavy-duty steel bar grating, resin loaded. All components bolt together or textured steel plate. To ensure through pre-existing access holes for worker safety, code approved stairs, easy assembly. The MaxiMezz system pivot gates, sliding gates, vertical consists of modular storage cabinets pallet rack is engineered to combine the and expanded metal railings may stacked two high into rows with an load capacity of structural channel racks be specified in a variety of choices. intermediate shelf cabinet between the with the torsional strength of tubular Cubic Designs, 800-826-7061, top and bottom cabinets. Configurable steel. It can also be used to support www.cubicdesigns.com. in a variety of layouts, the system also extended vertical heights, including

64 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com FOCUS ON Rack, shelving & mezzanines

Wire shelving now offered in range of new sizes A variety of new system sizes and accessories are now offered for the supplier’s selection of wire shelving systems. Included are 12 new standard shelf sizes, four new slanted shelf sizes, and four new post heights. For customization, the latest accessories include slanted shelves that attach to posts at an angle, S-hooks for continuous shelving runs, post clamps that connect two units together for additional stability, and a shelf ledge that prevents items from falling off the sides or back. The components can also be used to create mobile wire carts by combining a handle with posts, or a push handle, to other shelving elements. To secure shelves or posts directly to a wall, brackets may be specified. Akro-Mils, 800-253- 2467, www.akro-mils.com.

Maximize storage rack with custom-built gravity flow rack for small parts To maximize the storage space within large, heavy-duty storage and pallet racks, a line of custom-built inserts—constructed of plastic- coated steel pipe and joints—enables better capacity flexibility. The system facilitates the storage of odd shaped, non-packaged parts or creation of large-scale flow racks within the cubes of heavy-duty storage racks. By sub-dividing storage rack with the smaller scale gravity flow system, a facility can support picking of individual items for kitting, parts sequencing or order fulfillment. Each flow rack unit is built individually for easy assembly and maintenance and then joined as a unit. Low-friction, heavy-duty skate wheel conveyors allow shallow flow lane angles that support either returnable totes or hard bottom containers. They can also be tucked under pallet racks for high-density, lower-level storage, or placed in the rack’s higher levels for man-up order picking. Creform, 800-839-8823, www.creform.com.

Modular, boltless storage and display system Manufactured of high-quality, zinc-coated steel, Metalsistem Super 1-2-3 boltless storage and display shelving is offered as a fully adjustable solution for light- to medium-duty applications. The modular system allows for a variety of shelving configurations that can be enhanced with a range of accessories such as decks, shelves, steel planks, carton flow, bins, modular containers, shelf trays, drawers, steel cabinets and more. Quick and easy to assemble, the shelving’s high-tensile- strength steel construction enhances its stability in commercial or retail installations. Hannibal Industries, 888-246-7074, www.hannibalindustries.com. mmh.com FOCUS ON Rack, shelving & mezzanines

Increase SKU density with dynamic storage system SpeedCell compartmentalized hanging shelves adapt existing pallet rack structures to accommodate an increased number of product pick faces. The columns of shelves are suspended from the pallet rack on a track system that permits them to slide side to side for access up to seven rows deep. This design allows complete accessibility by pickers to all stored items. Depending on the application, the system can increase SKU density by 50% or more. It also shortens travel distance between picks for workers, increasing productivity and efficiency within the same warehouse footprint. Holland Storage Systems, 616-499-7666, www.speedcell.net.

Cut square footage requirements by 35% We’ve got with drive-in/drive-thru pallet rack Ideal for stocking large quantities of relatively few product types, a line of drive-in/ you covered. drive-thru roll-formed pallet rack can reduce overall square footage needs by 35%, compared to selective rack. Highly customizable, the rack structure can be configured Increased coverage for last-in/first-out (LIFO) or first-in/first-out (FIFO) storage applications. Because it and better defense. features deep lane storage, the racking reduces space requirements and costs by holding more loads. The structure is engineered to accommodate a facility’s existing Don’t let fire events or downtime pallets and forklifts in a variety of heights and depths. Interlake Mecalux, 877-632- block your operations! You need 2589, www.interlakemecalux.com. the strongest defense to keep your warehouse protected 24/7: the FAAST XT aspirating smoke Retrofit shelves with drawer unit that detector from System Sensor. Its expands storage capacity up to 50% 4-inlet technology blankets areas up A shelf converter system enables the use of the full cubic capacity of existing stor- to 28,800 sq. ft. and protects your age space, retrofitting traditional shelf storage into high-density drawer storage. The warehouse from incipient fires and insert is ideal for use in manufacturing, maintenance and repair operations, as well as potential damage by providing very parts cribs. It expands storage capacity by early warning of smoke, so you can up to 50% and consists of modular draw- respond before disaster strikes. ers set into brackets that fit multiple standard shelving brands. Easily expandable To celebrate as storage needs change, the unit stores FAAST XT’s small- to medium-sized items in drawers launch, we’re or on rollout trays—each with 440-pounds offering a capacity—while larger, bulkier items stay chance to win on shelves. Lista International, 800-722- tickets to the 3020, www.listaintl.com. Big Game in Feb. 2016! Assembled in the U.S. Reinforced steel baseplates enhance pallet rack’s stability Featuring reinforced steel in the most vulnerable spots, FlexRack pallet rack’s base- To watch the intro video, visit: plates create a sturdy foundation for a rack structure’s uprights and beams. Quick and go.systemsensor.com/ easy to install without welding, the baseplate’s simple, two-part construction has a four-point connection for a more secure fit. The rack components incorporate teardrop faastxt-mmh connections, making it compatible with rack from most manufacturers. The system also incorporates fully bolted connections that are stronger than welds and easier to repair. For fast shipping, all components are distributed from 18 different locations nation- wide. Next Level Storage Solutions, 800-230-8846, www.nextlevelstorage.com.

Portable storage racks support production operations Engineered to store, protect and inventory heavy parts, a heavy-duty storage rack is also equipped with large industrial casters. This allows the rack and its contents to be easily moved around a production floor. Standard rack configurations include four, five or seven 29 x 68-inch, adjustable-height shelves that each hold up to 250 pounds. For access to contents on each level, the shelves tilt up and out of the way at fingertip force on gas-spring assisted hinges for ergonomic loading and unloading. A reinforced base permits lift truck handling. Palmer Manufacturing, 937-323-6339, www.palmermfg.com.

High-density storage unit moves on wheels and rail Kompakt multi-purpose movable cabinet storage systems maximize material storage in a minimal footprint. Economical and efficient, the system requires minimal maintenance. The system is offered in two heavy-duty wheel and rail configurations to hold up to 1,000 pounds per carriage running foot. It may be equipped for electrical, mechanical assist or manual use. Tennsco, 800-251- 8184, www.tennsco.com.

Stainless steel wire shelving, accessories, ideal for hygienic applications A line of stainless steel storage products now includes 46 sizes of stainless steel wire shelves, 30 sizes of stainless steel solid shelves, and nine stainless steel post sizes. For customization to individual application needs, a variety of accessories may be specified, including: stainless steel enclosure panels, hang rails, push handles for carts, U-shaped handles for utility carts, shelf dividers, shelf ledges, and stainless steel casters. The products are ideal for pharmaceutical, food and bever- Save space and increase age, and healthcare markets where cleanliness and sanitation is critical. Quantum throughput with Ryson high Storage Systems, 800-685-4665, www.quantumstorage.com. capacity spiral conveyors. They are in response to our customer’s need to go higher and handle more weight. They can handle double the weight capacity of our regular spirals and can optionally Integrate ergonomic pallet lift table into have loads enter and exit the spirals at case flow picking for better productivity intermediate elevations. Engineered to work within pallet flow case picking applica- Quality and service come first at Ryson. We tions, the Ergo Cell ergonomic pallet lift table has fail-safe are the number one spiral manufacturer in the USA. For application assistance or pneumatic controls. These controls can elevate the front pal- more information, give us a call or visit let on the lift table, creating a comfortable range of motion www.ryson.com. for order selection while preventing repetitive injuries and Visit us in Booth 2347 at PROMAT improving picking rates. Once empty, the pallets can easily be removed from the lift table without weight or pressure from subsequent pallets. Because it supports integrated pallet flow for dense first-in/first-out (FIFO) storage—up to 12 pallets deep—and case picking from the front pallet position, the solution is ideal for use in high-density, high-throughput order picking systems. Mallard 300 Newsome Drive • Yorktown, VA 23692 Manufacturing, 815-625-9491, www.mallardmfg.com. Phone: (757) 898-1530 • Fax: (757) 898-1580 VERTICAL CONVEYING SOLUTIONS mmh.com PRODUCT Showcase

Deliver parts to production with tugger train system The STILL Liftrunner tugger train system supports lean manufacturing production processes by saving time and space when providing parts to the workplace. Offered as a means to enable a single operator to supply material to a production area without a forklift or pallet truck, the system delivers more parts in less time. Included are CX-T or LTX tractors that tow E- and C-frame trains. The frames safely secure and transport trolleys of various shapes that are easy to load and unload. Modular, all train elements can be individually adapted to suit any operation. KION North America, 843-875-8309, www.kiongroup.com. Control product flow and routing with smart, flexible chain conveyor New pallet system components are now offered for use on the supplier’s 2200 SmartFlex flexible chain conveyor platform. Sold as completed assemblies or as kits, the components enable easy design and layout changes to an existing conveyor system for accurate positioning and routing of parts in assembly, robotic and inspection applications. Pallet system components include merge and divert kits, a lift and locate station and pallet stops. Dorner Manufacturing, 800-397- 8664, www.dornerconveyors.com.

Rugged mini tablet is lightweight, powerful The new XT1 rugged mini tablet supports the Android 4.2 oper- SAVE TIME ating system and is WITH CREFORM AGVs. equipped with an integrated 2D bar code scanner. Compact and lightweight, the tablet features 4G-ready UMTS/HSDPA/HSUPA/ GSM wireless wide Get lean by eliminating labor-intensive manned tuggers, forklifts or carts. area network communi- Creform can help you automate your in-plant warehouse and production floor cation and 802.11a/b/ material handling. Our bolt-on AGV drives automate pipe & joint built carts and g/n dual-band WLAN. heavy-duty welded frame carts or just a few BST undercarriage AGV tuggers For durability in challenging environ- can mobilize an entire fleet of carts. From simple back-and-forth operations to plant-wide systems, Creform can do it all. ments, the IP54-sealed device has been constructed to withstand repeated 3-foot On time. Just in time. All the time. Saving time. Take a minute to give us a call. drops to concrete. Its 5.9-inch capaci- tive touchscreen is easy to read, while its lithium ion battery recharges quickly for maximum uptime and productivity. www.creform.com • 800-839-8823 Janam Technologies, 516-677-9500, www.janam.com.

68 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com CRE-392 4.5x4.625.indd 1 1/18/12 3:12 PM PRODUCT Showcase

Rotationally molded pallet made from new plastic formulation A new, rotationally molded pallet is made from Siluma, a special formulation that contains virgin high-density polyethylene (HDPE), silica and a patented unifier. Constructed with an aer- ated core that is strong and lightweight, the 48 x 40 x 6.3-inch pallet offers high impact resistance and weighs 50 pounds. Recyclable, rackable and weather resistant, the pallet is easy to clean and will not crack or break in low temperatures. It is exempt from fumigation requirements and resists bacteria, cor- rosion and creep, making it ideal for use in the food and dairy Cart-based AS/RS provides deep industry. The pallet holds static loads in excess of 9,900 pounds storage of palletized loads and dynamic loads up to 3,300 pounds. Paxxal, 317-296-7724, Tailored for facilities with small to medium storage needs, the www.paxxal.com. PowerStor 4000 is an adaptive, automated storage and retrieval system that can retrofit to existing space to maximize density and efficiency with high throughput rates. It provides deep storage of palletized loads, doubling warehouse capacity within the same footprint, while providing complete control of inventory. Ideal for landlocked facilities, the modular system can be adjusted and repositioned to accommodate the installation of additional, shuttle-based storage and retrieval carts. Power Automation Systems, 209-249-1616, www.powerautomation- systems.com. RIDER MEZZ 1/4 PAGE 2015_MMH - Advance Lifts 1/13/15 10:20 AM Page 1

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5-watt LED lamp offered Corner-over-corner drum tumbling device as 40-watt halogen mixes contents replacement The DrumTumblr device can correct settling and homogenize A new 5-watt G9 LED lamp is offered the contents of steel, plastic and fiber drums. The ergonomic as an energy-efficient replacement device agitates the drums in a corner-over-corner pattern to for 40-watt halogen T4 G9-based prevent hazards and worker exposure since drums do not have lamps. The lamp retrofits easily into to be opened existing G9 sockets and comes in for mixing. dimmable and non-dimmable ver- Drums from sions. Producing up to 450 lumens 30- to 55-gallon with a 300-degree beam angle, the sizes can be eas- lamp provides uniform light distribu- ily and securely tion. Compact, it features a 2.4-inch loaded and maximum overall length and 1.6-inch heat sink diameter, unloaded into and is TUV safety listed for use in non-enclosed luminaries the unit with in dry locations. The lamp produces halogen-like light in a either a hoist or warm white color temperature of 2700K, but lasts more than crane. Powered 12 times the life of a typical halogen. Unlike halogen bulbs, by a 1-horse- the LED lamps do not require handling with gloves or a soft power inverter duty or air-power motor, the unit handles cloth to avoid premature risk of rupture. MaxLite, 800-555- capacities up to 800 pounds. Morse Manufacturing, 315-437- 5629, www.maxlite.com. 8475, www.morsedrum.com.

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70 F EBRUARY 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com PRODUCT Showcase

Forklift supports drum- handling attachment Equipped with cushion tires for comfortable driving, the BC-9 series of four- wheel electric counterbalanced forklifts are ideal for ware- Prevent slips in wet environments housing, manufacturing, bot- with floor mat tling and distribution opera- Made of industrial-grade extruded vinyl, Web Trax floor mats tions. Offered in four models with load capacities ranging from provide maximum slip resistance in wet environments. Oil and 4,000 to 6,400 pounds, the vehicles feature an enclosed drive grease resistant, the matting features an integrated wave pat- and pump motor with brushless AC motors for improved effi- tern that creates a slip-resistant walking surface, while its open ciency and reduced maintenance. The forklift can easily accom- construction allows for easy drainage of liquids. The material is modate various attachments, including carton or drum clamps also impervious to caustic chemicals. Treated with an antibacte- and load stabilizers or extenders. To prevent overloading, a rial compound to prevent bacterial or fungal growth, the mats load indicator system measures the weight of the load being are also resistant to ultraviolet light. The mats are offered in lifted and alerts the operator if the limit is exceeded. Hyundai blue or gray and may be ordered in stock sizes of 3 x 5 feet, Forklift, 877-509-2254, www.hceamericas.com. or 40-foot long rolls in either 3- or 4-foot widths. Superior

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Lift, transport drums with stacker A line of manual and battery-operated drum stackers is capable of handling 30- and 55-gallon drums. The stackers accommodate loads up to 1,000 pounds on 18-inch centers, raising them to heights of 48 to 86 inches. Equipped with 1 x 3 x 30-inch solid steel forks, the units may be optionally outfitted with a drum grab- ber attachment for additional load security during lifting and transport. Presto Lifts, 800-343-9322, www.presto- New corrugated cardboard production lifts.com. process reduces paper waste To produce consistently smooth corrugated surfaces, the supplier offers a new manufacturing process that reduces the production temperature and pressure required, significantly cutting energy consumption. The process also reduces carbon dioxide emissions by 25%. Because of the lower temperature and pressure, the resulting corrugated cardboard material is more resistant to surface warping and broken scoring lines caused by weather changes. Each production line can produce more than 98 feet of material per minute. Champion Machinery, 886-2-27-356-006, www. tw-champion.com. Are your wooden pallet prices through the roof? TRY LITCO’S INTERNATIONAL SHIPPING PALLETS •Mold and Pest Free– Clean and dry Connect steel shelving, bins to wall- •Small Sizes–24”x40” and Half Euro as low as $3.95 48”×40” mounted, louvered panel •Large Sizes–Domestic and Euro as low as $6.75 AS LOW AS $6.75 A wall-mounted, louvered panel system supports shelving EACH and storage bins for storage of large items and small parts. Meets IPPC-ISPM 15 “Heat Treated” Requirements

The system includes steel shelves in flat and angled configurations that easily attach to the panel without tools. Offered in two sizes—12 x 36 and 18 x 36 inches—each shelf will hold 75 pounds. This new storage system allows a user to have a solid shelf to store larger items, while at the same time use bins that can hang on the same panel for smaller parts. Quantum Storage Systems, 800-685-4665, www. Visit Litco.com for “Buy it Now”, Bulk Buy RFQ and a Free Sample quantumstorage.com.

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72 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com PRODUCT Showcase

Localization option allows Efficient, high bay mobile robots to navigate LED for hazardous in dynamic operations locations Adding the Acuity localization option Energy efficient, the Class to the supplier’s line of Lynx intelligent, 1, Division 1 compliant autonomous mobile robots enables the SafeSite LED high bay vehicles to navigate in environments with fixture produces up to 23,500 lumens for bright illumination in extremely dynamic surroundings. This hazardous locations. The fixture can reduce energy consump- permits effective operation in busy, high- tion by more than 50%, drawing 212 watts in comparison to traffic warehouses by allowing for the conventional high-intensity discharge (HID) systems averaging constant movement of people, pallets, carts and forklifts, and 460 watts. The unit is backed by a 10-year, full-performance shelves being emptied and refilled. The device uses overhead warranty. In addition to maintenance savings, the product’s static cues to pinpoint the robot’s location, allowing operation in lifespan enhances a facility’s safety conditions by minimizing dynamic horizontal environments. Ideal for rapid materials trans- the need for personnel to enter hazardous locations. Each port in a variety of industries, the robots also feature on-board fixture weighs 30 pounds and is rated for operation in ambient intelligence, enabling them to choose the best path to complete temperatures ranging from -40°F to 149°F. Dialight, 732-919- a task with no facility modifications required. Adept Technology, 3119, www.dialight.com. 925-245-3400, www.adept.com.

Chargers reduce energy use, extend battery life Two new battery chargers that meet California Energy Commission (CEC) efficiency standards for industrial lift truck applications have been released. Ideal for limited space locations, the compact Legacy Neo high frequency charger provides constant diagnosis of a battery’s condi- tion, and adjusts the charging curve for optimum charge. This reduces both heat and over- charge to maximize battery life. The Neo comes in manual or automatic operation models and in charging profiles for flooded, cold store, and valve regulated lead acid (VRLA) batteries. For larger fleets with multiple battery voltages and capacities, the Legacy Insight high frequency charger reduces energy use by delivering a higher power factor than conventional chargers. Capable of opportunity charging to eliminate battery changes during a shift, the manual or automatic charger comes in four charging profiles: flooded, opportunity, VRLA and cold storage. Douglas Battery, 800-211-3684, www.douglasbattery.com.

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mmh.com MODERN MATERIALS HANDLING / F e b r u a r y 2 0 1 5 73 MODERN 60 Seconds with...

Mark Stevens

Stevens: The industry term Digital Guardian is “defense in depth.” What TITLE: Vice president of global that means is that we know services and support they’re going to get through LOCATION: Waltham, Mass. your perimeter because no one is going to stop : 20 years in EXPERIENCE these guys. So, you don’t enterprise software and systems worry about the program- PRIMARY FOCUS: Digital Guardian mable thermostat on the wall. is a security firm that specializes in Instead, you determine what’s data loss protection. really sensitive and protect that. The new chip diagram I referred to is on a protected Modern: We hear a lot today server that will shut down if about credit cards, retail point- they system is hacked. It’s not of-sale (POS) systems and even keeping them out anymore; the military’s Twitter account it’s about making sure they being breached by hackers. How don’t get to your most sensi- vulnerable are manufacturing and tive assets. warehousing systems? Stevens: There’s a saying that plant. That was where the company Modern: there are two kinds of companies: was vulnerable. For the hacker who What should a those that have been hacked and wants data, it may be easier to attack manufacturer or distributor do to those that don’t know they’ve been a retail POS system—or a machine on protect themselves? hacked. So, the short answer is that the floor—that is less secure than to Stevens: First and foremost, under- manufacturing and warehousing sys- go after the corporate network. stand what data is important to you tems are very vulnerable. and your business. Next, you need Modern: Are industrial clients to figure out how to keep an efficient business process while securing the Modern: Why is that? aware of this vulnerability? data at the point of risk. Stevens: It’s two-fold. First, it’s the Stevens: The conversation is different interconnectedness on the factory and today than it was six months ago, as Modern: warehouse floor. Every machine today a result of some of these high-profile Is this problem only going has an IP address and is online. Now, a breaches. You’ve been hacked. I’ve to get worse? hacker doesn’t really want to get into been hacked. The factory manager Stevens: Unfortunately, the answer your plant. What they want is your has been hacked. You can’t turn on is yes. And while you may think your data, and a manufacturing plant has the TV without hearing about Sony. It’s business is immune because you’re data. For instance, you may protect heightening awareness, which is help- not as high profile as a Sony, think of your intellectual property at the cor- ing. Your reader should ask themselves it this way: What if you’ve got a good porate level, but when you manufac- whether they have sensitive informa- job working at a plant in Ohio that is ture something, you have to send that tion that could hurt them if it got out. If at risk because the Chinese can steal information to the factory floor, where the answer is yes, they have to assume your company’s IP and make the part it’s now vulnerable. One of our clients someone is going to try to get it. for 20% less? That’s a real concern. was a manufacturer that made a chip Modern: I read about one That’s a real issue. What makes it a that was important to the entertain- company that was hacked through hard problem to solve is that these ment industry. The hackers waited and its programmable thermostat. systems weren’t thought about from didn’t try to get into the corporate Given that they’re coming in security first. They were designed for system. Instead, they waited until through the heating system, what interconnectedness and now that’s M the design was downloaded to a test can be done? going to be exploited.

74 F e b r u a r y 2 0 1 5 / MODERN MATERIALS HANDLING mmh.com supplychain247.com

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