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Crate&Barrel:Sustainable distribution
page 20
SPECIAL REPORT
2010 industryoutlook 34EQUIPMENT REPORT
Overhead handling update 40
John J. Ling, VP of supply
chain management and logistics,
Crate and Barrel
m m h . c o m
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
April 2010
Green materialshandling
26
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mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 3
IN THE WAKE OF A PRODUCT RECALL that included more than 50 million units of Tylenol arthritis prod-ucts, St. Joseph’s Aspirin, Motrin and other products, the McNeil Consumer Healthcare unit of Johnson & Johnson reported that it has taken steps to ensure that similar situations do not happen in the future. In a letter to the U.S. Food and Drug Administration, Peter Luther, McNeil president, wrote, “McNeil and Johnson & Johnson
management are taking this issue very seriously and are committed to ensuring that McNeil implements all necessary corrective and preventive actions to improve the McNeil quality systems.” The letter also outlined key elements of the corrective action plan that includes enhancements to the quality system, organizational changes, and senior management oversight. For more, go to Modern’s Web site, mmh.com/recall.
A LEADING AUTOMATED materi-als handling solutions provider, Intelligrated (www.intelligrated.com), has announced the addition of tilt-tray and cross-belt sortation solutions to its product portfolio. Under an agreement resulting from the acquisition of FKI Logistex in 2009, Intelligrated is now the exclu-sive provider of Crisplant technology in North and South America. Intelligrated now designs, sells, manu-factures and supports the complete line of Crisplant
tilt-tray and cross-belt sorters, as well as associated software, controls, induction and chute solutions. “Intelligrated is meeting the material handling market’s demand for fully customized and scalable high-throughput sortation solu-tions,” said Chris Cole, CEO of Intelligrated.
ADDING FOAM-IN-PLACE to its product portfolio, Pregis(www.pregis.com), a supplier of protective packaging solu-tions, has acquired IntelliPack. By integrating IntelliPack’s people, cutting-edge technology and service platform, Pregis will be in a unique position to increase value to its customers
through a more extensive offering. The acquisition will become part of Pregis’ protective packaging division, head-quartered in Deerfield, Ill. IntelliPack’s 38 employees will be joining Pregis’ 4,000-member worldwide staff. Based on 2009 revenues, the combined companies achieved in excess of $900 million.
FURTHER STRENGTHENING Logility Voyager Solutions as a comprehensive supply chain solution, Logility (www.logility.com) has acquired certain assets of pri-vately held Optiant, provider of multi-echelon supply chain optimization systems, for approximately $3.3 million in cash. Optiant’s unique optimization technol-ogy helps manufacturing companies and distribution businesses free up millions of dollars in working capital trapped within their multi-echelon supply chains. Optiant improves strategic inventory policies and tactical inventory targets to produce bottom-line savings, achieve higher service levels, and miti-gate the impact of supply and demand variability. Logility will incorporate the Optiant products into the Logility Voyager Solutions suite branded as Voyager Inventory Optimization.
Intelligrated adds sorters to portfolio
Pregis acquires IntelliPack
B R E A K I N G N E W S Y O U S H O U L D K N O W
UPFRONT
Logility acquires Optiant
McNeil implements corrective action plan
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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,WAREHOUSING AND MANUFACTURING
VOL. 65, NO. 4
DEPARTMENTS & COLUMNS3/ Upfront7/ This month in Modern
19/ Lift truck tips: Narrow aisle lift trucks46/ Product focus: AGVs48S/ Supplement: Crossdocking’s latest and greatest58/ 60 seconds with...
NEWS9/ Toyota and Raymond solidify bond, protect brands13/ Overall RFID market to hit $5.35 billion this year15/ February retail numbers up slightly from January
COVER STORYSYSTEM REPORT
20 Crate&Barrel: Sustainable distributionCrate and Barrel’s Tracy, Calif., distribution center achieved Gold designation from LEED and merged the retailer’s sustainability and distribution initiatives.
FEATURESBIG PICTURE
26 Green materials handlingFrom conveyors to pallets, industry leaders make the case for how their products can make a difference to companies focused on the green supply chain.
SPECIAL REPORT
34 Industry outlook: Bouncing off the bottomExperts agree: The materials handling industry may bump along the bottom a little longer, but optimism is slowly replacing pessimism.
EQUIPMENT REPORT
40 Handling up highUsing the overhead space in your facility not only frees up floor space, but also leads to more efficient product movement.
PRODUCTIVITY SOLUTION
45 Do what you do bestLift truck equipment management program keeps Maines Paper & Food Service focused on delivering customer satisfaction.
60 seconds with... Allan Howie, page 58
John J. Ling and Crate and Barrel use green design to deliver sustainable distribution and environmental benefi ts, page 20
Modern Materials Handling® (ISSN 0026-8038, (GST # 123397457), is published monthly by Reed Business Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Reed Business Information, a division of Reed Elsevier, is located at 360 Park Avenue South, New York, NY 10014. John Poulin, CEO. Circulation records are maintained at Reed Business Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Phone (303) 470-4445. Periodicals Postage Paid at Littleton, CO 80126 and at additional mailing offi ces. POSTMASTER: Send address changes to Modern Materials Handling, P.O. Box 7500, Highlands Ranch, CO 80163-7500. Publications Mail Agreement No. 40685520. Return undeliverable Canadian addresses to: RCS International, Box 697 STN A, Windsor Ontario N9A 6N4. E-mail: [email protected]. Please address all subscription mail to Modern Materials Han-dling, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Rates for non-qualifi ed subscriptions including all issues: US, $119.99/yr, Canada, $159.99/yr (includes 7% GST, GST#123397457); Mexico, $159.99/yr; International air delivery, $249.99/yr. Printed in U.S.A. Modern Materials Handling® is a registered trademark of Reed Elsevier Properties Inc. used under license.
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mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 5
COVER PHOTO BY GARY LAUFMAN
Increasing productivity through improved warehouse/DC management best practicesModern partnered with the Aberdeen Group to provide this special look at how leading warehouse and DC operators have applied ware-house management systems and automation to streamline distribution operations—and maximized company profi ts along the way.
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T H I S M O N T H I N M o d e r nEDITORIAL OFFICES225 WYMAN STREETWaltham, MA 02451(781) 734-8000
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THIS MONTH MODERN SHARES THE third in a series of features we’re calling “Big Picture: Where materials
handing meets business.” The concept was cooked up by executive editor Bob Trebil-cock over the past year as he began to no-tice that more of his System Report subjects (Kroger, Canadian Tire, Fisher Nuts, Pata-gonia, etc.) were creating facilities, systems and automation plans that were weaved into a greater, long-term supply chain and business strategy.
“I thought it would be useful for readers to understand how these new strategies are changing the face of materials hand-ing operations as well as how equipment manufacturers were gearing up to meet the challenge,” says Trebilcock.
Well, there may be no greater challenge facing readers than engineering a move toward a more sustainable warehouse/DC operation; and no greater feat for suppli-ers of materials handling systems, software and equipment than to give warehouse/DC managers the tools to meet today’s more altruistic goals.
And just where do we stand as an industry on meeting these often hard to defi ne objectives? That’s just what Trebil-cock set out to fi nd when he created this month’s package of sustainability features that start on page 20. First, we get to peer inside Crate and Barrel’s 1.2 million square feet of LEED Gold certifi ed distribution space in Tracy, Calif.—the largest industrial facility in the country to achieve this lofty designation.
John Ling, vice president of supply chain and logistics for the trendsetting retailer, and his team are setting the standard for
a concept we’re going to call “sustainable distribution”—and they started from the moment they broke ground.
By applying green initiatives, Crate and Barrel diverted 95% of the construction waste away from landfi lls and into a recy-cling program; reduced water consumption by 35% compared to a traditional ware-house design; and has pledged that at least 35% of the total energy usage will be from renewable sources. But that’s just the short list of green goals the company is meeting.
And while sustainability may be the headline it’s really only a part of the story. According to Ling, the operations inside the four walls will play a critical role in keep-ing the company out in front of a crowded market.
“It’s harder and harder to differentiate yourself as a retailer solely on merchandise uniqueness,” Ling tells Trebilcock. “Success often comes down to who can fi nd the best product and get it to market the quickest and at the best value…our supply chain helps us accomplish that and the Tracy facil-ity is an important link.”
Once you’ve been inspired by Crate and Barrel’s story you’re going to need to research the tools to do it yourself. On page 26, Trebilcock offers what I would call the most comprehensive collection of systems, equipment, technology, and insight current-ly available to help your organization usher in its own sustainable distribution plan.
Going green is already a priority in the boardroom, so it’s only a matter of time before sustainability initiatives like those we’re seeing from Crate and Barrel will fi lter down to your own operations—that is if you haven’t already started.
Long-term green strategy
MICHAEL LEVANSGROUP EDITORIAL
DIRECTOR
®
MMH100401myview_ID.indd 7 4/8/2010 3:10:06 PM
MORE THAN 10 YEARS AGO,Toyota Industries Corporation (TICO, www.toyota-industries.com) pur-chased BT Industries, making The Raymond Corp. (www.raymondcorp.com) part of the Toyota Material Handling Group (TMHG).
Last month, Toyota announced that the relationship between Raymond and Toyota would now be solidifi ed into one management organization under Toyota Material Handling North America (TMHNA). According to Toyota, the formaliza-tion of the management and opera-tions structure of TMHNA will further strengthen the Toyota and Raymond brands in North America, allowing the two organizations to better col-laborate on business effi ciencies and share resources to improve levels of quality, service and support.
To make sure the two entities act as a united team, Raymond’s president James Malvaso will now be TMHNA’s president and chief execu-tive offi cer. Charles Pascarelli will be appointed president of the Raymond sales division, while Michael Field will be appointed president of the
Raymond operations division.TMHNA, comprised of Toyota
Industrial Equipment Mfg. (TIEM), Toyota Material Handling, U.S.A. (TMHU), and The Raymond Cor-poration, will be headquartered at Toyota’s facilities in Columbus, Ind.
According to TMHNA, the new man-agement and operations structure will work on strengthening North American regional coordination, while continuing to grow the existing brands and maintaining distribution channels for Toyota and Raymond.
m m h . c o m MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 9
LIFT TRUCKS
TEN YEARS AFTER THE PURCHASE OF BT INDUSTRIES, RESTRUCTURING BRINGS TOYOTA AND RAYMOND EVEN CLOSER TOGETHER.
Toyota and Raymond solidify bond, protect brands
BY TOM ANDEL, CONTRIBUTING EDITOR
Company Briefi ngs | Bob Trebilcock The conveyor industry is growing again.www.mmh.com/blog/growingagain
Takeaways | Tom AndelLift trucks: ensuring propane’s future www.mmh.com/blog/propanesfuture
Di@blogbest of Modern’s blogs
MMH100401_News_ID 9 4/6/2010 2:03:43 PM
10 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
This is all interesting news to those of us who follow the comings and goings of the lift truck industry. But the question remains: “Why now, after all these years?” The only person to answer that question with authority is James Malvaso, TMHNA’s new president. So, we asked him to
explain the signifi cance of this news to customers and dealers.
Modern Materials Handling: What’s the signifi cance of making this announcement on March 22, 2010—a decade after Toyota acquired Raymond?
James Malvaso: At that time, it was acknowledged that the two compa-nies needed to coordinate. Instead of forcing things right away, we de-cided to let things evolve. I see this announcement as the natural result of that evolution. It’s the logical next step. You start acknowledging each other’s existence, you work a little bit together, you start to see benefi ts, and as you get more comfortable you combine the visions of the or-ganizations into one and operate as one great company.
MMH: How will this affect product-line development?Malvaso: Given the economy and the amount of volume available in the market, this is a very diffi cult time to spend signifi cant resources on new product introductions. With that said, the electric truck side has gained a larger percentage of the market than in the past. Motor and control tech-nologies have evolved nicely, and there will be more dialog between our research and development orga-nizations to look for commonality in components and see if we can reduce our manufacturing costs and design costs.
There will be a continued empha-sis on the information side of the business. Raymond’s iWarehouse is an example of customers’ desire to know more about their operations. I don’t think that will go away. But at the industry level there can be less emphasis on product and more on the value that the manufacturer and distributor can bring to the custom-ers to help them reduce operating costs.
MMH: Through this announcement, what’s the message to your dealers and what are their concerns, if any?Malvaso: The Raymond dealers are less concerned than the Toyota deal-ers. I’m a known entity in the Ray-mond world; and although they know me in the Toyota world, they don’t yet know how I operate. I’m telling
MMH100401_News_ID 10 4/8/2010 2:08:26 PM
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them that we have a mutual interde-pendency. The manufacturer can’t survive without a dedicated distribu-tion organization, and distribution can’t survive unless it has the prod-ucts and support from the factory. We have very similar objectives, so it’s more of a team than manufactur-
er and distributor. It’s an enterprise we have to develop to best serve our customers.
MMH: Will there be changes or consolidations at the manufacturing level?Malvaso: In North America, we’ve
already done the major consolidation by moving reach truck manufacturing from Brantford, Ontario, to Greene, N.Y. We will assess the offerings we have across the lines and make sure we’re manufacturing the right prod-ucts at the right places. I think we already have it right.
We can work better together in procurement and in inventory management and in logistics. We will continue to emphasize continuous quality improvement throughout all operations. Every month we get our manufacturing people together in a room to talk quality and TPS [Toyota Production System] best practices. That will continue. In fact, that will be amplifi ed now that we’re one organization.
MMH: Where does TMHNA fi t into the whole Toyota organization?Malvaso: It fi ts under the Toyota Material Handling Group, along with Toyota Material Handling Europe, Toyota Material Handling Internation-al, Toyota Material Handling Austra-lia, Toyota Material Handling China, and Toyota Material Handling Japan. What’s neat about this is we can cut through all these slices horizontally. Wherever our customers go as they get more international and China heats up, we’ll be able, with the click of a mouse or the dial of a phone, to coordinate horizontally with any country in the world. We’ll be better able to coordinate our production, engineering and product offerings. With national accounts demanding more and more, I don’t know how anyone can rival us.
MMH: What’s the impact on the dealer networks?Malvaso: We’re still committed to our two-brand, two-channel ap-proach. If you look at Raymond and Toyota’s market positions combined, nobody sells more units in North America. We don’t have excess distribution in our channels. We need everything we have and we want to
MMH100401_News_ID 12 4/8/2010 2:08:29 PM
m m h . c o m MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 13
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DATA CAPTURE
Overall RFID market to hit $5.35 billion this yearA NEW MARKET DATA REPORT released by ABI Research (www.abiresearch.com) predicts the overall RFID market to reach $5.35 billion this year, a glimmer of optimism after
the economic slide required the fi rm to adjust its RFID forecasts downward for 2009 and 2010.
“The outlook is good for steady growth through the next fi ve years,” said ABI Research’s RFID practice director Michael Liard. “We expect the overall RFID market to exceed $8.25 billion in 2014, representing a
capitalize on each other’s strengths in order to keep advancing our position in the North American market.
MMH: How does this grow the relationship between Raymond and Toyota?Malvaso: This has been an arm’s length family relationship. We’ve done a lot of work together in ad-vancing TPS and quality principles through our factories. We’ve worked somewhat together on procure-ment, and we’ve shared best prac-tices. We’re going to take that arm away and operate as true partners. We’ll identify synergy opportunities throughout all aspects of our business.
On the dealer side, we’ll co-ordinate better and we’ll work backwards from there through the factories all the way to the very beginnings of the company. That’s where we believe there’s good potential to improve our perfor-mance and partnering, as well as the operating metrics of our combined companies. This is not a consolida-tion. It combines two solid organiza-tions so we have a single direction and a coordinated strategy.
MMH: How does this affect you personally?Malvaso: Although I’m president and CEO of Toyota Material Han-dling North America, I will main-tain chairmanship of The Raymond Corporation. My major function will be to develop and set forth the stra-tegic direction for the four entities we’ll have under TMHNA, including Toyota Sales and Marketing, Ray-mond Sales and Marketing, Toyota Manufacturing, and Raymond Manu-facturing. These entities will operate in a highly coordinated fashion. I’m looking to solidify the organization so we have predictable performance and we’re structured properly for the new market size we’re in. We need to perform as a team and not four separate players.
MMH100401_News_ID 13 4/8/2010 2:08:32 PM
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14% compound annual growth rate (CAGR) over the next fi ve years.”
Not all segments of the RFID market are created equal, added Liard. “To 2014, the greatest growth will be found in real-time location systems (RTLS), baggage handling, animal ID, and item-level tagging in
fashion apparel and retail.”The report, Semi-Annual RFID
Market Data, contains extensive data on RFID revenues and unit shipments segmented by technology, applica-tion and vertical market.
All four RFID technologies: low-frequency (LF), high-frequency (HF),
active and passive ultra-high-fre-quency (UHF), and microwave are in-cluded across numerous applications. Because the entire RFID space is so fragmented, said Liard, data is broken down into two application categories: traditional and modernizing.
“Traditional applications include uses such as access control, automo-bile immobilization and electronic toll collection that account for slightly more than 61% of the total market today,” he explained. “Those ap-plications are expected to grow 6%, compounded annually from 2010 through 2014.”
“In contrast, modernizing appli-cations such as asset management, cargo tracking and security, point-of-sale (POS) contactless payment, RTLS and supply chain management are forecast to grow roughly 19% in the same time period,” Liard said.
The growth, particularly in mate-rials handling applications, can be attributed to an increased awareness of RFID’s capacity to solve common business challenges such as asset management optimization and utili-zation, explained Liard.
“There have also been a lot of developments in the technology, particularly in passive UHF tags due to the Wal-Mart compliance initiative of a few years ago,” he added. “That drove the creation of standards and technological advancements, making the tags more accessible, more af-fordable and better performing than they were a few years ago.”
In surveying users, he said, ABI found that the increased affordabil-ity and better understanding of the value that RFID technology can bring are leading many enterprise and in-dustrial users to deploy pilot and trial programs, which Liard predicts will lead to both limited and widespread deployments.
“If there’s a value tied to a track-able asset or the goods that are inside it, more users are telling us they see the value in making that investment,” he said.
MMH100401_News_ID 14 4/8/2010 2:08:35 PM
RECOVERY
February retail numbers up slightly from JanuaryA FULL ECONOMIC RECOVERY is not yet underway, but data released recently by the United States Department of Commerce and the National Retail Federation (NRF) data indicate that consumers are slowly coming out of their bunkers, with both organizations reporting increases in February retail sales.
February retail sales, which include non-general mer-chandise like automobiles, gasoline and restaurants, at $355.5 billion were up 0.3% from January and up 3.9% year-over-year, according to the Department of Com-merce. And total retail sales from December 2009 through February 2010 were up 4.5% year over year.
The NRF reported that February retail sales (which excluding automobiles, gas stations and restaurants) increased 1% seasonally adjusted over January and 1.7% unadjusted year-over-year.
“February could be the direct result of cabin fever with consumers eager to get some fresh air and enjoy a day of shopping,” said Rosalind Wells, chief economist for NRF. “We expect sales increases to continue but high unemployment and other economic factors will restrain consumers’ ability to splurge on discretionary items.”
WMS Support offers workshop for WMS usersDon Benson, one of the originators of the WMS in-dustry and the founder of Warehouse Management Systems Support, will host a six-hour interactive workshop for WMS users who want to get the most out of their investment in a WMS system. The work-shop will be held prior to the opening of WERC An-nual Conference 2010 at the Anaheim Marriott from 10 a.m. to 4 p.m. on Sunday, May 16.
“The workshop is designed to help people use their WMS systems to do the work in their facilities more effectively,” says Benson. “It’s geared for the person in an organization or facility who is respon-sible for the WMS, anyone from a task supervisor or warehouse manager up to the president of a smaller distributor whose core competency is order fulfi llment.”
The registration fee is $200. Limited seating is available on a fi rst come/fi rst serve basis. For more information or to register for the workshop, contact Don Benson (503-296-7249, [email protected]) or visit www.wmssupport.com.
MMH100401_News_ID 15 4/8/2010 2:08:38 PM
BY BOB TREBILCOCK, EXECUTIVE EDITOR
THE CONVEYOR INDUSTRY ISBACK ON THE MEND, with mem-bers of the Conveyor Equipment Manufacturers Association (CEMA, www.cemanet.org), expecting a return to growth in 2010.
“We’re expecting CEMA mem-bers to report sales that are fl at to up 2% for the year,” according to Dan Fannin, vice president of mar-keting for Emerson Power Transmis-sion. Fannin expects the market to reach $6.2 billion this year, up from $6.06 billion in 2009. Sales will still be more than $1 billion below the $7.8 billion association members racked up in 2007.
Still, up is up, and that’s great news for the conveyor industry, which has fared the recession better
than the overall materials handling industry.
Fannin delivered his report in Scottsdale, Ariz., where I’ve traveled to attend CEMA’s annual meet-ing. The most impor-tant take away I’ve gotten is that things seem to be getting better. Don’t get me wrong;. No one told me business is great. Fannin, for instance, said he was trying to be conservative in his assess-ment and added that getting that 2% growth will depend on whether the anticipated orders come in with enough time for conveyor manufac-turers to ramp up production and ship before the year is out.
But I heard from a number of
companies that end users are once again sending out requests for pro-
posals and asking for quotes. “It all starts with propos-
als,” one manufacturer told me, “and we’re seeing them again.”
This is the second year in a row I’ve been to CEMA, and
I’ve really enjoyed spending time with this
group. I have two other blogs from the event, includ-
ing a report on a panel discussion that included the guys in charge of buying materials handling systems for Miller Coors and UPS and a look at what conveyor users want. Look for them at www.mmh.com/blog/cemapanel and www.mmh.com/blog/conveyorusers.
16 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
FROM THE BLOGS
CEMA: The conveyor industry is growing again
MMH100401_News_ID 16 4/8/2010 2:08:41 PM
www.MMH.com introduces the new
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m m h . c o m MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 19
As businesses make their way out of a dismal economy, they’re fi nding that they’ve lost a lot of their best lift truck operators either through layoffs,
attrition or job transfers. So, who’s left to operate the lift trucks? Anyone?
That’s right: Anyone. And many of these anyones aren’t being trained. That’s bad enough when they’re operat-ing sit-down counterbalanced trucks, but when these unschooled employees are told to maneuver a narrow-aisle lift truck down the corridors of a 25-foot-high rack-ing system, the employer is gambling—and the odds are against him.
Ken Van Hook recently did an accident investigation on a company that replaced some of its standup narrow aisle trucks with those of another brand. As president of Safe-T-Consultants in Humble, Texas, he often serves as an expert witness in cases such as this. In this case, some of the newer models purchased by the company had reverse-steering capability. The older trucks didn’t. The operator, not having been schooled under OSHA’s equipment-specifi c training guidelines, suffered an accident.
“It’s not that the controls have changed so much, it’s just that narrow aisle is a unique application,” he says. “And when you tell a guy who’s used to driving a sit down counterbalanced to raise a load 240 inches or more, whether a single reach or double reach, there could be trouble. I’m not saying they’re harder to operate, but you have to be consistent in driving one of those all the time.”
Adding to the problem is low staffi ng on the dealer side. Many lift truck service providers have laid off both mechanics and training staff. That can work against them at a time when dealers should be building relationships with their customers and acting as information resources. However, there’s so much staffi ng fl ux on both sides of the selling process that whatever useful information is ex-changed often gets lost during the next staffi ng transition.
Dealer vigilance is key to successful narrow aisle ap-plications, Van Hook says.
“The dealers should be getting in to see the purchas-ing people who don’t know anything about lift trucks and suggesting they move their fl eet around,” he suggests.
“Maybe they have a newer truck being used in a low-cycle application and a beater they keep putting money into.”
The problem with this is staff politics. Senior operators often get the privilege of using the new equipment and their work schedules might be different from everyone else’s. Maintenance across a fl eet might become uneven. And maintenance is not only a productivity issue, but a safety issue. Bad casters and wheels on narrow aisle trucks are a bad combination with high-rise storage racks.
Add bad or non-existent training to this mix and you can set off a chain reaction: lift truck wobbles, operator hits rack, rack sustains structural damage, time passes, rack weakens, rack fails, inventory is lost, people are hurt, time is lost—and so is business.
Whatever the politics of your work site, keep training and maintenance non-partisan issues—especially where narrow-aisle lift trucks are concerned.
Avoid tight spots innarrow aisles
Narrow aisle lift trucks provide a unique application that requires
special training.
Some users of narrow aisle lift trucks are getting themselves into tighter spots than they need to.
TOM ANDEL,
COLUMNIST
Contact Tom Andel at [email protected].
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Crate&Barrel:
SYSTEM REPORT
Today, Crate and Barrel is setting a new standard for something we’ll call sustainable distribution. Last June, the retailer opened the largest industrial facility in the coun-try to achieve Gold designation from the U.S. Green Building Council’s Leadership in Energy and Environmental Design—or LEED—certification program.
The campus in Tracy, Calif., has 1.2 mil-lion square feet of distribution space spread across two buildings: One is an 800,000-square-foot facility that handles big-ticket items like furniture, while the other is a 400,000-square-foot building set up to dis-tribute smaller housewares items. There is room to expand the distribution space to
2 million square feet on the current site if business dictates.
The campus was also designed to be Crate and Barrel’s West Coast break-bulk operation. “All of our imports from Asia come through here and are then sent on to other distribution operations in Naperville, Ill., and Cranbury, N.J., based on customer demand,” says John J. Ling, vice president of supply chain management and logistics for the Northbrook, Ill.,-based company. In addition to the store replenishment and break-bulk processes that are up and running today, Crate and Barrel plans to implement a direct-to-consumer fulfill-ment operation out of the smaller of the
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RATE AND BARREL HAS ALWAYS BEEN A TRENDSETTER.Founded in Chicago in the 1960s, the privately held home furnish-ings retailer set a new standard for contemporary and affordable housewares.
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Crate and Barrel’s Tracy, Calif.,
distribution center achieved Gold
designation from LEED and merged
the retailer’s sustainability and
distribution initiatives.
e distribution
By Bob Trebilcock, Executive Editor
two buildings later this year.That operation will use state-of-the-art
automated fulfillment technology fromKiva Systems (781-221-4640, www.kiva-systems.com). But until that happens, thisis not so much a materials handling story:about 20% of the product received in Tracyis crossdocked upon receipt. The rest ispalletized, stored in racks and moved by lifttrucks. That is pretty conventional. Rather,the new facility illustrates how Crate andBarrel’s business and sustainability objec-tives were fused in the design of a greendistribution center.
First, the DC was designed and con-structed in a sustainable manner that min-imizes Crate and Barrel’s impact on theenvironment. On that score, Ling believesthey have set the standard for sustainabledistribution. “Over the last five years, wehave taken on a mission to be a more sus-
tainable company and a better corporatecitizen,” says Ling. “It is not only some-thing we believe in, but what our custom-ers expect from us.”
While appealing to its customers andsupporting its broader sustainability goals,Crate and Barrel’s use of a green designdelivered a number of environmental ben-efits, including:• more than 95% of the waste from the
construction process was diverted awayfrom landfills and recycled;
• a reduced development footprint thatexceeded the local zoning board’s openspace requirement by 25%;
• more than a 34% reduction in ongoing
At 1.2 million sq. ft. the new DC is the largest to earn Gold certification in North America, says John Ling, VP of supply chain management and logistics. (Right)
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water consumption compared to atraditional warehouse design;
• at least 35% of the total energy usagewill be from renewable sources, and
• facility lighting uses motion-con-trolled florescent fixtures and theuse of natural light from the exten-sive addition of skylights.The facility was also constructed from
environmentally sustainable materials:• more than 40% of the building
materials were produced region-ally, reducing the carbon footprintassociated with transporting thosebuilding materials;
• building materials were manufac-tured with more than 45% recycledcontent, and
• more than 50% of the wood prod-ucts used in construction werecertified sustainable by the ForestStewardship Council (FSC).Sustainability, however, is only half
the equation in Tracy. The new campusalso enables Crate and Barrel’s broadersupply chain strategy.
“It’s harder and harder to differenti-ate yourself as a retailer solely on mer-chandise uniqueness because the worldis becoming so transparent,” says Ling.“Success often comes down to who can
find the best product and get it to mar-ket the quickest and at the best value.Our supply chain helps us accomplishthat and Tracy is an important link inour distribution network.”
Optimizing the supply chainAccording to company history, Crate andBarrel was founded in 1962 by Gordon
and Carole Segal after the Chicagocouple returned from a honeymoon inEurope where they were taken with thecontemporary, but affordable house-wares they saw during their travels. Toset up shop, they leased an abandoned
elevator factory in Chicagoand purchased productdirectly from glassblow-ers, ceramicists and fromfactories making Frenchcopper pots and simplewhite bistro dinnerware.The first store opened withone employee and no cashregister. With no money tobuy fixtures, they displayedthe merchandise on ship-ping crates and barrels—
hence the name.Nearly 50 years later, the company
has grown to 7,500 employees and morethan 170 stores in 16 North Americanmarkets. Two franchise stores in Dubaiwill open in spring of 2010. In additionto its stores, the company manages adirect-to-consumer catalog and Internetbusiness that rings up more than $300million a year in sales—about 25% ofthe business.
Ling joined the company in the late1990s. He and CIO Ed Rennemannwere given marching orders to createa distribution network and systemsinfrastructure to support the company’sgrowth. Crate and Barrel had alreadyoutgrown the capacity of an existingChicago warehouse and was storing
22 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
SYSTEM REPORT
Skylights and motion-controlled fluorescent fixtures (top left and center) reduce lighting costs in the new facility. While most of the facility utilizes conventional material handling (top right), automation is coming.
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merchandise at several local 3PLs. Atthe same time, business was growingfaster on the East and West Coaststhan in other regions of the country.
The first step was to build a new800,000-square-foot campus inNaperville, Ill., in 1998. It was designedwith one large facility to handle storereplenishment for the Midwest andbreak-bulk shipments from overseasand a smaller facility to handle large-ticket items and home delivery opera-tions. This facility was expanded to 1.2million square feet when the direct-to-consumer fulfillment operation wasadded and became the model for futuredesigns.
Six years ago, a similar campus wentup in Cranbury, N.J., with a large facil-
ity to handle break-bulk shipmentsfrom Europe and store replenishmentfor the East Coast. This was followedby an adjoining smaller facility to han-dle big-ticket merchandise and homedelivery operations. This campus wasexpanded to 950,000 total square feetin 2008 to support direct-to-consumersales on the East Coast.
A third 400,000-square-foot facilityis located in the heart of the furnitureindustry in Lincolnton, N.C. From thatlocation, Crate and Barrel consolidatesupholstered furniture from nearbymanufacturers and feeds the rest of thedistribution network on a just-in-timebasis to fill customer orders.
Crate and Barrel also receivesimported furniture from other sourcesand stores them in the DC for furtherdistribution based on demand. Crateand Barrel also maintains a networkof 20-plus smaller delivery hubs thatreceive and crossdock deluxe furniture
for home delivery. The network of hublocations also allows Crate and Barrelto determine the most cost effectiveand efficient way to make a delivery, nomatter where the sale is made.
“If you live in Indiana, order furni-ture while you’re on vacation in Floridaand want it shipped to your summerhome in Michigan, we’ll figure out theshortest distance and the shortest ordercycle time to complete the delivery,”says Ling.
As both imports from Asia and busi-ness on the West Coast grew, Crate andBarrel began to look for a location for aWest Coast distribution campus similarto Naperville and Cranbury.
“We had two older and smallerfacilities near Oakland where theleases were expiring,” Ling says. Whilethe company has more business inSouthern California, Crate and Barrelwas hesitant to open a facility in theLos Angeles region.
With the Tracy campus up and running, Crate and Barrel is focusing on sustainable materials handling.
WHILE CAREFUL ATTENTION WAS PAID to building mate-rials, lighting and recycling, the facility’s materials handling systems were not part of the sustainability equation. One reason, as Modern has pointed out in the past, is that at present, materials handling isn’t a factor in achieving LEED certification.
Another, however, is that at the time the Tracy project was built, materials handling vendors were not promoting the role they could play in a sustainable facility.
“It’s not that we weren’t willing to try sustainable materi-als handling,” says Ling. “We would have been open to lis-tening, but it was not something we saw from the industry when we were putting this project together.”
However, now that the facility is up and running, Crate and Barrel is readying a direct-to-consumer fulfillment sys-tem featuring mobile drive units for the smaller of the two facilities, a solution that Crate and Barrel also believes is both efficient and sustainable.
“The system is sustainable because the autonomous drive units are energy efficient, are manufactured in part from materials with recycled content and the picking area can be operated with minimal lighting,” says Ling. It’s also scalable, he adds, allowing Crate and Barrel to implement only what it needs to run its business now and expand later as the direct-to-consumer business grows. “We can scale our investment and the use of materials to what we need for our business,” says Ling. “That allows us to match our systems with our need, and then scale the system up as the economy improves and our business grows.”
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SYSTEM REPORT
Green materials handling
Along with using recycled materials in construction, Crate and Barrel recycles industrial packaging materials.
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“We bring in about 7,000 containers a year, where some ofthe big box retailers can bring in more than 20,000 contain-ers a month,” Ling says. “We didn’t want to be a small fish ina big pond and have our merchandise sit on a ship waiting tobe unloaded.”
Instead, Crate and Barrel chose a site in Tracy, which isclose to the Port in Oakland, where it is a bigger player andcan also ship to the rest of the country.
Sustainable distributionIn addition to a strategic location, Tracy provided Crate andBarrel with the opportunity to combine its supply chainefforts with its sustainability initiatives.
“Over the past five years, we have increased our focus onbecoming a more sustainable company and a better corporatecitizen,” says Ling. That mission has been driven by a com-bination of altruism and customer demand. “We cater to avery sophisticated, educated and demanding customer,” Lingsays. “As an example, they are asking us important questionsabout where the wood in our furniture comes from and howthe furniture is made.”
The company’s efforts began with the way it sources theraw materials that go into many of its products. For instance,Crate and Barrel was the first national U.S. retailer to part-ner with The Tropical Forest Trust (TFT), an internationalorganization that works with local tree farmers and harvest-ers to help them develop more sustainable practices with thegoal of achieving certification from the Forest StewardshipCouncil (FSC).
As the company expanded its green initiatives, it realizedthat the supply chain plays a critical role. Crate and Barrel
SYSTEM REPORT
Special parking spaces are available for employees whodrive fuel efficient vehicles.
LANDOLL CORPORATIONMATERIAL HANDLING PRODUCT DIVISION1900 North Street · Marysville, KS 66508
785-562-5381 · Fax [email protected]
800-428-5655 · WWW.LANDOLL.COM/MHP
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looked for ways to reduce the packaging and dunnage usedin its inbound and outbound shipments and to incorporaterecycled content wherever possible. “Today, we strive toensure that everything we buy has some recycled content orFSC certification,” Ling says. “That includes the paper weuse for our catalogs.”
Building a green distribution center was the next logicalstep. Working with ProLogis (800-566-2706, www.prologis.com) on a design for the Tracy facility, Crate and Barrel real-ized they could almost get basic LEED certification simply asa result of California’s strict environmental laws. So, to get tothe next level, achieving Gold certification became the goal.
The two companies hired the M.E. Group (www.megroup.com), a green design consultant, to identify areas that couldmake a difference. “The M.E. Group was part of every designmeeting we had and they gave us ideas and direction for everyaspect of the building design,” Ling says. “That allowed us tobe thoughtful and smart about the design and constructionprocess without affecting the overall cost of the building.”
One example: Crate and Barrel chose not to install solarpower until they see how the regulatory environment andtechnology develops. However, because one of their goalsis to get 35% of the building’s electricity from alternativesources of energy, they did strengthen the roof trusses so theycan implement solar at a later date.
Other initiatives included recycling more than 95% of theconstruction site waste, and installing a sophisticated light-ing system with motion detectors, timers and skylights tohelp achieve a 37% reduction in energy usage.
But perhaps one of the most important lessons from theproject is that building a sustainable facility did not requireCrate and Barrel to alter its usual business objectives fora distribution center. “This is an $80 million facility,” Lingadds. “But we did not have to change our ROI or the impactthe new operation has on our distribution network to dothings that also support our core beliefs.”
Near the Port of Oakland, the facility handles about 7,000 containers a year.
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From conveyors to pallets, industry leaders make thecase for how their products can make a difference to
companies focused on the green supply chain. By Bob Trebilcock, Executive Editor
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ow green are your materials handling sys-tems? That may not be a question you’re cur-rently asking your materials handling suppli-
ers or one that your customers are asking you today.After all, most certification groups don’t yet factor inmaterials handling systems when they’re looking atthe impact of a distribution center or manufacturingplant on the environment.
That, however, may soon change. Ninety-twopercent of the respondents to our annual IndustryOutlook Survey said they expect environmental sus-tainability to be very (48%) or somewhat (44%) impor-tant in the next two years. It is already a priority inthe board rooms at Fortune 500 corporations and arequirement for doing business with state and federalgovernments.
Most companies launch their sustainability initia-tives in those areas of their business where they canhave the most impact, like fuel consumption for atransportation company. But just as lean initiativesstarted in the factory and migrated to the warehouse
and the office, it’s only a matter of time before sustain-ability efforts filter down to the warehouse.
“I think most of our clients already have sustain-ability on their radar,” says Paul Evanko, a seniorvice president for St. Onge (717-804-8181, www.stonge.com), a design and consulting company. “Itmay not be No. 1 on their list, but it’s become acorporate priority.”
What’s more, Evanko adds, there are plenty of areasin a facility—from efficient storage and picking to car-ton cubing to smart controls on equipment—wherematerials handling can enable a sustainable opera-tion once someone starts asking the question: Howgreen are your materials handling systems? (For thoseattending NA 2010 this month in Cleveland, Evankowill be one of the presenters on sustainability.)
To get a snapshot of where the industry is today,Modern asked more than 20 suppliers of materials han-dling products and systems how they are going greenin their manufacturing processes and products, andhow they can enable sustainable materials handling.
... WHERE MATERIALS HANDLING
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MEETS BUSINESS
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Engineered for efficiencyOne way to reduce the consumption of energy in an auto-mated materials handling system is to operate in the mostefficient manner while still meeting throughput require-ments, says Jerry Koch, Intelligrated’s (866-936-7300, www.intelligrated.com) product director of software and controls.Intelligrated recently implemented a system that allows thecustomer to enter in the demand for the day. With that infor-mation, the control system can calculate the least amountof energy usage required to run the system and meet thatdemand. Although it has not been implemented, Intelligratedalso designed a system that integrates with a building’s infra-structure. “If we no longer have product flowing in an area ofthe building, we can put the conveyor in sleep mode and tellthe building to turn off the lighting in that area,” Koch says.“As the cost of energy rises, we believe the technology willbecome viable.”
Making the most of every kilowattWith power companies calculating rates based on peak usage, how you manage your energy usage is important, says Ken Ruehrdanz, Dematic’s (877-725-7500, www.dematic.com) warehousing and distribution market manager. Using an energy-monitoring audit, Dematic collects and analyzes power con-sumption data of conveyors, sorters and automatic storage and
retrieval systems (AS/RS) to better understand power usage. The system can then formulate a demand management plan that spreads out power usage and reduce peak usage of con-veyors, sorters and other technology. This tactic reduces spikes in power usage and keeps the user in a lower price range.
Reducing your footprint with automated storageFor a company focused on minimizing its impact on the landand on saving energy, AS/RS has a green story to tell, saysDan Labell, president of Westfalia Technologies (717-764-115, www.westfaliausa.com). “One of our customers pro-duces organic dairy and meat products,” says Labell. “Theychose AS/RS to conserve land use. But, they were also able toreduce their energy consumption because they could reduceinterior lighting; they could use the rail supports to reducethe amount of stretch wrap on a pallet that might end up inthe landfill; and restrict the size of the openings required togo into refrigerated and freezer areas to minimize heat loss.”In freezer applications, an AS/RS allows for a smaller areaaround the ceiling. “In cooled areas, the ceiling is the secondplace you lose heat,” Labell says.
Maximizing space, minimizing impact“When it comes to green, AS/RS has a lot of benefits,” saysJohn Clark, director of marketing for TGW-Ermanco (231-798-4547, www.tgw-ermanco.com). “Any time you can take anexisting facility and double or triple your storage footprint in anexisting building without having to heat, cool or light that stor-age area, you’re going to see savings.” In a new facility, Clarkadds, AS/RS technology allows for a footprint that’s a thirdor more smaller than a traditional environment. Meanwhile,TGW-Ermanco’s conveyor technology uses electronic sensorsto operate on-demand features. “You can interface with exist-ing line shaft conveyor to change a portion of your system withthe new technology without ripping out your existing systemand starting over,” says Clark.
The economic triple bottom line Corporate sustainability advocates like to talk about the eco-nomic triple bottom line. The idea is that done right, environ-mental stewardship and social responsibility lead to economic prosperity. Those concepts can be adapted to vertical and horizontal carousel solutions, says Ed Romaine, vice presi-dent of marketing for KardexRemstar (800-639-5805, www.kardexremstar.com). Automated storage provides an environ-mental benefit because dense storage allows for a smaller building, reduced construction costs, and less maintenance and heating costs in the future. The product is socially responsible because it delivers assets to a workstation at an ergonomic height, providing access to work to the disabled and a graying workforce. Economic prosperity results from a more productive workforce. “By putting the right equipment in the right applications and for the right reasons, you’ll see a return on your investment,” Romaine says.
Conveyor, sortation and storage
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Doing more with lessEven in these difficult times, companies are asking about sus-tainability, says Tom Coyne, CEO of System Logistics (207-784-1381, www.systemlogistics.com). “We have been askedrecently to quantify the energy consumption of our systems,to quantify the savings from high efficiency motors and tosuggest ways to drive energy savings with our systems,” saysCoyne. High density, automated storage systems deliver sus-tainable savings because they use space efficiently. “But, weare also using software and controls to make our equipmentmore efficient,” says Coyne. “That allows us to use a smallerconveyor system and fewer motors and still meet throughputobjectives.” System Logistics recently cut out a mile of con-veyor over a traditional design for one customer that incorpo-rated electricity generated from solar panels in the system.“We believe we can drive more sustainable benefits throughsoftware and design than by simply making the equipmentmore green,” Coyne says.
Calculate the savingsAutomated materials handling delivers sustainable ben-efits that aren’t yet credited by certification organizations,contends Bob Gorman, business development lead for HKSystems (800-457-9783, www.hksystems.com). “AGVs aremore efficient than lift trucks, which means you’re consum-ing less electricity,” says Gorman. ”An automated storage sys-tem allows you to get by with a smaller building. That meansless concrete and less water runoff that might disturb thesurrounding habitat.” For companies weighing the tradeoffsbetween energy efficient technologies, like AGVs and con-ventional materials handling solutions, HK offers an energycalculator on their website. Systems designers can performwhat-if scenarios to compare various solutions, using variableslike motor consumption rates for AGVs, cranes and lift trucks,to find the most economical and energy efficient solutions.
Reuse and regenerateViastore Systems (616-977-3950, www.us.viastore.com) is working on the next generation of automation technology to deliver even more savings over conventional automated equipment, says company director Ken Lewis. Automated storage and retrieval systems (AS/RS) are now equipped with an energy reuse or recovery unit that captures the ener-gy generated by a braking unit when a load is lowered and sends that energy back into a drive motor. “Depending on the level of use, you can realize up to 30% energy savings over a conventional AS/RS,” says Lewis. In Europe, Viastore is installing energy re-feed units on its machines that put that power back into the energy company’s electrical grid. Finally, Viastore is analyzing and redesigning its customers’ materi-als handling systems and throughput requirements to operate with smaller, energy-saving motors or to run at slower speeds to conserve energy.
Sustainable designThere are a number of ways an end user can reduce the car-bon footprint of their operations, says Joe O’Connor, direc-tor of marketing for Wynright (847-595-9400, www.wynright.com). One is to design a system with sustainability in mind.That starts with a working understanding of the availability ofrebates and incentives to adopt alternative energy as well asthe energy costs in different areas in the country. In addition,the systems integrator offers an after market service to analyzehow effectively active and reactive electric power is being usedwithin a facility. “If the two are out of balance, we can correctthat with capacitors that allow you to rely less on your utility,”says O’Connor.
Lift trucksSustainable manufacturing“Sustainability has been a way of life for Crown for over 20years,” says Brian Duffy, director of environmental health andsafety for Crown (419-629-2311, www.crown.com). “Whenwe design our products, we choose materials and technologythat have a long material life and that have another use at theend of their usable life.” At the end of the first life of a truck,Crown uses the materials to remanufacture lift trucks underthe Encore brand. “We will reuse, rebuild and remanufactureas much of the content of our trucks as we can,” says Duffy. “Ifa component can’t be reused, we will break it down and reusethe component parts. What we can’t reuse, we dispose of in anappropriate manner.” Remanufacturing and reusing parts haskept 7,000 tons of parts out of landfills. What’s more, the com-pany has added over 1 million square feet of industrial spaceby using abandoned or under utilized buildings.
Reducing energy usageRaymond (800-235-7200, www.raymondcorp.com) is helping its customers be more energy efficient by designing its prod-ucts to operate with as little battery power as possible. “Our ACR system relies on a motor technology and controls that allows the truck to be more energy efficient while driving and lifting,” says Joe LaFergola, manager of business and informa-tion systems. The system combines an AC-powered motor with a traction control system that is tuned to the motor to get the most efficiency out of the system. “If you have a multiple shift operation, you can use two batteries instead of three,” says LaFergola. “Spread that over a fleet of 150 trucks, and that represents a significant number of kilowatt hours over the course of a year.”
Reducing a carbon footprintLast year, Toyota Material Handling, U.S.A. (800-226-0009, www.toyotaforklift.com) was awarded the Governor’s Award for Environmental Standards in Indiana for an initiative that reduced energy consumption by 2.2 million kilowatt hours and
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a reduction in carbon dioxide output of 3,611 tons. “That’simportant because our customers are asking not just aboutour products, but also what we as a company are doing aboutsustainability,” says Melinda Beckett-Maines, Toyota’s nationalmarketing manager. But Toyota’s efforts don’t stop with energyconsumption. The company has converted 60% of its paint-ing processes over to dry coat and reduced the volatile organiccompounds (VOCs) produced by the paint process in half.A Toyota plant in Columbus, Ind., is a zero landfill facility.And, Toyota is working to ensure that its suppliers share itscommitment to environmentally sustainable manufacturing.“Companies are not only looking for environmentally friendlyproducts, they are interested in doing business with environ-mentally-friendly companies,” says Beckett-Maines.
Developing fuel cellsOver the last year, NACCO Materials Handling Group(NMHG), maker of Yale and Hyster brand lift trucks, (503-721-6000, www.nmhg.com) has been working with Plug Powerand Central Grocers to develop a fleet of 236 fuel-cell pow-ered Yale lift trucks. When the entire project is complete laterthis year, hydrogen fuel to re-power the cells will be deliveredand dispensed on-site, allowing for quick refueling, increased
productivity and zero emissions. For end users that aren’t readyfor the leap to hydrogen fuel cells, NMHG has introduced anew line of industrial combustion engine trucks that reducesfuel consumption by at least 8%. It is also partnering withenvironmental agencies and technology companies to developthe next generation of battery-powered lift trucks. “Some ofour largest customers are already planning facility enhance-ments to accommodate new types of equipment to chargetheir trucks in an efficient, productive and safe manner,” saysJonathan Dawley, vice president of marketing.
Automatic GuidedVehicles andmobile robotsSmooth and efficient robotsIndustrial robotic technologies bring two components to thetable, contends Brad Wyland, director of product strategyat Seegrid (412-621-4305, www.seegrid.com). First, they
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mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 31
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are unmanned and run on electric power rather than fossilfuels. And because a robot is computer controlled, it is moresmooth and efficient in how it uses power. “That not onlyleads to better energy consumption, we believe you’ll also seea reduction in wear and tear on wheels and other parts,” saysWyland. “That will reduce the total cost of ownership andreduce your overall footprint.” In the future, Wyland adds,Seegrid plans to investigate alternative sources of energy topower the robots. Second, robots enable the move toward“lights out” automation. “When you’re using robotic tech-nology, you can reduce your HVAC costs and the amountof lighting you need in certain areas of the facility,” Wylandsays.
Controlled efficiency with AGVsLike industrial robots, automatic guided vehicles use electric batteries and computer controls to operate more efficiently than lift trucks. “We do the same tasks as a lift truck, but we can more precisely control the acceleration and decelera-tion rates,” says Mark Longacre, JBT’s (215-822-4489, www.jbtc-agv.com) marketing manager. “Because we can control the battery cycles, you’ll see longer battery life.” JBT is also researching alternative power sources for its vehicles. For
instance, the company implemented a nine-vehicle system that uses hydrogen fuel cells for a tire manufacturer. “The vehicle creates a little bit of water vapor that evaporates,” says Longacre. “So far, it has worked well and provides an even source of power that is rock solid.” The company is testing a methanol fuel cell to recharge a traditional battery during operation. “Methanol doesn’t have the energy density we need to power the vehicle directly,” he says. “But it does give us some efficiency gains, and methanol is considered a cleaner and more sustainable fuel.”
Green equals lean“For Jervis B. Webb, sustainability is about enabling a leanoperation that reduces waste,” says Sarah Carlson, market-ing director for Jervis B. Webb (248-553-1000, www.jervis-bwebb.com). For the last year, Webb has replaced the stan-dard absorbed glass mat batteries (AGM) that it used with fastcharging, thin plate pure lead batteries (TPPL). “TPPL bat-teries last up to 50% longer than AGM batteries, and they are90%-plus recyclable,” says Carlson. “And, because they chargefaster, you can operate your facility with fewer batteries.” Thattranslates into less energy, less parts and less maintenance. “Tous, that’s part of green in the bigger picture,” says Carlson.
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BIG PICTURE
Pallets, totes and containers
Recycling packagingReduce, reuse and recycle. That is the value proposition ofusing reusable packaging products, like plastic pallets, contain-ers and totes, says Pete Budney, vice president of marketingand product development for ORBIS (888-217-0965, www.orbiscorporation.com). “You’re reducing the amount of wastethat’s going into the landfill because you’re not manufacturingadditional product,” says Budney. A lifecycle analysis done fora major soft drink company found that a reusable plastic shellrequired 43% less energy over its life, created 80% to 90%less solid waste, and generated 30% to 60% fewer greenhousegases compared to a single-use corrugated shell.
Lighter, recyclable pallets“Companies looking for ways to improve their environmentalperformance find all-plastic pallets a compelling solution,”says Bob Moore, chairman and CEO of iGPS (800-884-0225,www.igps.net). In the case of iGPS, users can augment theirsustainability efforts in several ways. For one, the pallets arepart of a pool that is used over and over. In addition, theyare 30% lighter than a typical multi-use wood pallet, whichreduces fuel consumption and greenhouse gas emissionsassociated with transportation. Finally, they are 100% recy-clable and do not contribute to deforestation. That results infewer pallets going to the landfill. Last but not least, plasticpallets are never painted as are some wooden pallets, elimi-nating the release of volatile organic compounds (VOCs) thatare found in some paints.
Cradle-to-cradle sustainabilityWhile traditional wooden pallets often end up in the land-fill, presswood pallets have received Cradle-to-CradleCertification at the silver tier from McDonough BraungartDesign Chemistry (MBDC) for their ingredients, recyclabil-ity and design principles. The pallets are manufactured fromwood waste products, molded under high heat and are freeof bugs, bark and mold, which makes them appropriate forexport. The wood for presswood pallets comes from low-grade timber stands that are uneconomical for other pur-poses; 93% of the biomass of the tree is used in the produc-tion of the pallet. The unused 7% is often used to provideenergy in the factory’s boiler system. Unusable presswoodpallets are also being used in waste-to-energy and biofuelplants. “In the future, we hope to develop new products withold Inca pallets,” says Gary Sharon, vice president of LitcoInternational (330-539-5433, www.litco.com).
Software andergonomicsLEED-certified heating/coolingWhile LEED may not recognize most warehouse and distribu-tion center technologies, Big Ass Fans (877-244-3267, www.bigassfans.com) is one of the exceptions. “We have helpedcustomers document energy savings and thermal comfort inabout 20 LEED-certified buildings,” says Christian Taber, anapplications engineer. “I’d say at least 80% of our customersare now asking us about the impact of our technology on thebottom line of their operations and the environmental ben-efits as well.” The fans use relatively small motors—0.5 to 2horsepower—to turn large blades at low speeds. In cold cli-mates, the fans circulate the warm air that accumulates atthe ceiling, reducing heating costs by 20% to 40%. In warmclimates, the air velocity coming off the blades makes a workarea feel 5 degrees to 10 degrees cooler than it is. “If you don’thave air conditioning, your worker will feel comfortable with aminimal use of energy,” says Taber.
Designing a sustainable supply chainThink green, and software may not be the first thing thatcomes to mind. But supply chain network optimization anddesign solutions are emerging as a front-line tool for compa-nies concerned about sustainable supply chains, says KellyThomas, JDA Software’s (800-438-5301, www.jda.com) seniorvice president of manufacturing. “Network design tools havealways used constraints to create the most efficient supplychain, and now we can also take sustainability factors intoconsideration,” says Thomas. Last year, JDA began to includecarbon emission data elements along with water consumptionand production as part of its data model.
MMH100401_BigPic_ID.indd 32 4/8/2010 12:20:49 PM
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Untitled-5 1 4/5/2010 4:45:36 PMMMH100401_ADS 33MMH100401_ADS 33 4/7/2010 3:34:14 PM4/7/2010 3:34:14 PM
34 M O N T H 2 0 0 6 / MODERN MATERIALS HANDLING mmh.com
Experts agree: The materials handling industry may bump along the bottom
a little longer, but optimism is slowly replacing pessimism.
Industry outlook
Bouncing off the bottom
By Lorie King Rogers, Associate Editor
MMH100401_Outlook_ID 34 4/8/2010 1:09:27 PM
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mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 35
“We can clearly say, that we have seen the turn from thematerials handling industry being in free fall to it starting tofeel as if there is a floor under us again,” says John Nofsinger,CEO of the Material Handling Industry of America (MHIA,704-676-1190, www.mhia.org), the trade organization that
represents the industry. “We started to see hints of a recoveryin the second quarter of 2009, and we’re now seeing renewedoptimism.”
MHIA’s optimism is backed up by recent economic data.The Gross Domestic Product increased by 2.7% in the threequarters through winter 2010 and will keep growing at abouta 2.5% to 3.0% annual pace through 2011, according to JimHaughey, chief economist with Reed Business Information’sConstruction Data Group. Much of that growth is being drivenby a surge in equipment exports and an expansion of manu-facturing production, which increased by nearly 6% in thesix months through January 2010 and willincrease 9% more by the end of 2011.
Still, while the industry is gentlybouncing off the bottom, this is a subparrecovery after a deep recession, Haugheycautions.
Modern’s Survey says…Modern’s Readers share Haughey’s cau-tious optimism, according to our recent 2010 State of the Industry study con-ducted for Modern Materials Handling by
the research department of parent company Reed Business Information. The annual survey, which was e-mailed to Modern readers in February and yielded 353 respondents, tracks market changes during the last year and aims to under-stand the current state, trends and practices in manufactur-ing, warehousing and distribution.
Last year was a mixed bag, according to our respondents. Spend levels on materials handling solutions for 67% of the responding companies remained steady. The remaining were evenly split: 16% say spending on materials handling equip-ment increased, while 17% say spending fell.
The industry outlook for 2010 and beyond is encourag-ing. Nine out of 10 companies say that spending on materials handling will either increase or remain the same during the next year. Only 8% say spending will drop.
Still, that optimism is tempered. While nearly 31% of respondents say they are moving forward with intended plans, 48% say they are taking a wait-and-see approach.
MHIA’s viewThe Material Handling Equipment Manufacturing (MHEM)forecast, conducted by MHIA, provides a solid foundation forpredicting the market outlook. What do those numbers say?
Last year, MHEM numbers led MHIA to predict a rela-tively modest contraction for the industry of 18% to 20%.The actual decline was closer to 37%.
For 2010, MHEM numbers are predicting a relativelypositive forecast, with growth in orders in the 6% to 8.5%range. “Material handling suppliers are starting with a small-er order book going into 2010, but order books will be up bythe end of the year,” Nofsinger says.
Although shipments of materials handling products con-tracted by 34% in 2009, Nofsinger says the contraction is
done and shipments are expected togrow 1% to 2% this year. While the glob-al economy has yet to rebound from theeconomic downturn, exports of materi-als handling equipment, which droppedfrom $5.8 billion to $3.7 billion in 2009,are expected to increase in 2010 to about$3.8 billion. Imports of materials handlingequipment are forecasted to see a similarslight uptick from $3.7 billion in 2009 to$3.8 billion this year.
Still, shipments and exports have a way
How is the present state of the economyaffecting your spending on materialshandling equipment technologies servicesand solutions?
21%
18%
13%
48%We are taking a "wait-and-see" approach/ moving slowly with our decisions
We are holding off on investing
We are proceeding with our investments
The economy is having little/no impact on our materials handling spending
Modern Materials Handling’s 2010 State of the Industry Study
Increasing 16%
Decreasing 17%
Staying the sameas 2009 67%
How does your company'sspending on materialshandling solutions in 2010compare with 2009?
Modern Materials Handling’s 2010 State of the Industry Study
A cross the industry, across the country and across the globe, it was unanimous: Every segment of the materials handling industry took a hit in 2009. Experts predicted a contraction last year, but underestimated the breadth of the economic decline.
That was then, and this is now. Once again, industry experts are in agreement: The worst is behind us and the signs are pointing to a better 2010 and beyond.
SPECIAL REPORT
MMH100401_Outlook_ID 35 4/8/2010 1:09:42 PM
36 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
to go before they return to pre-recession levels.“Going into 2010, I anticipate progressive, continued,
gradual growth,” says Nofsinger. “But I don’t expect to see areturn to 2007 levels until 2012 or beyond.”
Automatic identification and data captureThe automatic identification and data capture (AIDC) mar-ket also expected a contraction in 2009, according to a reportreleased by Venture Development Corporation (VDC, 508-653-9000, www.vdccorp.com). However, last year the datacapture market was considered “a speck of brightness for thenext 12 months.”
“Our prediction that the market would contract cametrue,” says Tom Wimmer, director of auto ID and transactionautomation practice at VDC. “Unfortunately, we missed theseverity of the contraction.”
So what will get the attention of CIOs in 2010? Wimmercontinues to see near-term growth opportunities in emerg-ing geographic and vertical markets, especially in Asia andLatin America where demand for AIDC technology is rapidlyincreasing. Additionally, Wimmer believes compelling growthopportunities can be found in health care, commercial ser-vice, government and segments within retail.
“The rubber meets the road when you start thinking aboutapplications because that’s what generates sales,” Wimmersays. “We think there are a lot of promising applications withinhealth care around patient safety. Concern about patient safetyhas driven interest in asset management within hospitals toensure patients have what they need when they need it.”
More effectively managing assets and people, and trackingthem throughout an enterprise or supply chain has become
increasingly important, Wimmer says. This ties back to post-9/11 security interests and these safety and security issuesare supported by our survey findings (see table above).
The trend in warehousing operations, according toWimmer, is toward multi-modal data capture that takes themany AIDC technologies—bar code, RFID and voice—andcombines them to provide benefits across the enterprise.
Soft market for softwareSupply chain management software, which is comprised of solutions such as supply chain planning and network design (SCP), manufacturing execution (MES), warehouse man-
SPECIAL REPORT
How important are these issues today?88%
12%1%
67%31%
2%
39%48%
12%
62%35%
3%
27%46%
27%
12%39%
50%
29%46%
25%
36%50%
14%
43%33%
23%
62%34%
5%
45%48%
7%
88%11%
1%
58%37%
5%
31%50%
19%
36%51%
13%
53%39%
8%
Cost containment
Throughput
Labor availability
Company growth
Facility consolidation
Outsourcing (3PL)
Trading partner collaboration
Environmentally sustainable
Having a presence in global markets
Training
Ergonomics
Safety
Capital availability
Smaller, more frequent orders
Hours of service
Cycle times
Very important Somewhat important Not at all important
Modern Materials Handling’s 2010 State of the Industry Study
In which areas will you be investing overthe next 18 months?New equipment/equipment upgrades (ie. automated retrieval lift trucks bins/ totes, etc.)
Information technology hardware/ software
Staffing/ labor
Maintenance services
Enterprise applications (ERP, CRM, WMS, WCM, etc)
Outsourcing/ 3PL services
Outside services (3PLs)
Other
69%
37%
31%
25%
24%
8%
8%
6% Modern Materials Handling’s 2010 State of the Industry Study
MMH100401_Outlook_ID 36 4/8/2010 1:09:43 PM
mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 37
agement (WMS) and transportation management (TMS),was not immune to the downturn either.
Last year, Steve Banker, service director of supply chainmanagement at ARC Advisory Group (781-471-1000, www.arcweb.com) predicted that the market would contract about5%. Unfortunately, Banker says, things were a lot tougher thanexpected and the market took a bigger hit. In the WMS mar-ket, even the big players were down significantly, he adds.
Although the annual results from its annual WMS studyare not yet available, Banker is optimistic about 2010. Hesays, “I think we’ll gradually come out of it in the coming year
and spending will start to increase. If the market could growby 1% the suppliers would be thrilled.”
Lift truck marketThe slide in the lift truck market was also steeper thanexpected. The hope was that 2009 would be a year of adjust-ment rather than recession. Jeff Rufener, president of theIndustrial Truck Association (ITA, 202-296-9880, www.indtrk.org) and vice president of marketing for MitsubishiCaterpillar Forklift America, tells us that he was surprised bythe pace and depth of the downturn.
“Our industry is cyclical,” says Rufener, “and we’ve hadrecessions in the past, but I didn’t think it would be pos-sible to fluctuate more than 35%. Last year surpassed thatfigure, and we ended up being down about 40% from wherewe were in 2008.”
SPECIAL REPORT
Two years from now, how important do youexpect these issues to be?
87%12%1%
73%25%
2%
48%46%
7%
71%26%
3%
31%45%
24%
16%40%
44%
36%44%
20%
48%44%
8%
55%24%
20%
74%24%
2%
56%40%
4%
90%9%1%
60%35%
5%
40%45%
16%
45%43%
12%
61%33%
6%
Cost containment
Throughput
Labor availability
Company growth
Facility consolidation
Outsourcing (3PL)
Trading partner collaboration
Environmentally sustainable
Having a presence in global markets
Training
Ergonomics
Safety
Capital availability
Smaller, more frequent orders
Hours of service
Cycle times
Very important Somewhat important Not at all important
Modern Materials Handling’s 2010 State of the Industry Study
Which of the following green initiatives have been implemented? Of those, whichwere not in use 12 months ago? Which willbe evaluated over the next 12 months?
66%39%
31%
59%32%
26%
9%4%
53%
25%22%
41%
11%14%
40%
22%19%
30%
29%17%
27%
45%24%
32%
58%28%29%
74%36%
17%
4%
6%5%
Use
Use but not used 12 months ago
Will evaluate over the next 12 months
Lighting fixtures and/or controls
Fans to circulate cool or warm air
Solar panels
Metal and/ or plastic pallets
LEED certification for new buildings
Upgraded insulation
Water run-off controls
Reusable shipping containers
Packaging and/ or packing materials
Recycling
Other
None5%
Modern Materials Handling’s 2010 State of the Industry Study
MMH100401_Outlook_ID 37 4/8/2010 1:09:44 PM
38 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
The bright side: History tells us that the lift truck industryalways recovers and even comes back to top previous recordlevels. Still, Rufener is characterizing 2010 as a recoveryyear. “We bottomed out and will grow modestly by about 7%over 2009,” he says. “Still, single-digit growth is not going toprovide a lot of relief for the financial strain that the industryis under.”
One strain is that the tight credit market will likely con-tinue to be an issue in 2010. That could affect how muchinventory distributors are willing to carry in light of the pres-sures they are facing. “Is it a game changer?” Rufener asks.“We have to contemplate that and how it will affect relation-ships with end users.”
Other events have resulted in profound and lasting changesin the lift truck market, including government regulationsregarding fuel and noise emissions, the cost of fossil fuel,and advances in electric truck technology that enable perfor-mance to be closer to internal combustion engine trucks.
Internal combustion products are shrinking in the overallmarket. In 2005, 55% of the materials handling equipmentin Classes 1 through 5 were electric; in 2009, electric trucksaccounted for 68% of the market. He also reports that ITA
SPECIAL REPORT
Over the next 18 months, approximately how much do you expect to spend on materials handlingequipment and informationsystems?
Less than $25,000
$25,000 - $49,999
$50,000 - $99,999
$100,000 - $249,999
$250,000 - $499,999
$500,000 - $999,999
$1 million - $2.49 million
$2.5 million or more
23%
17%
15%
20%
9%
6%
6%
5%Modern Materials Handling’s 2010 State of the Industry Study
1%-10%
By what percentage doesyour company's spendingon materials handlingsolutions in 2010 comparewith 2009?
19%15%
11%-20% 16%13%
21%-30% 11%6%
31%-40%3%
41%-50% 5%10%
51%-60%1%
61%-70% 3%
71%-80% 1%3%
81%-90%
91%-99% 1%5%
100%
Increase
Decrease
5%5%
Modern Materials Handling’s 2010 State of the Industry Study
For each of the following,will you be selecting anew supplier or usingan existing one?
78%29%
Information technology solutions
70%40%
Outside services (3PLs)
80%36%
Systems equipment (ie. automated retrieval,lift trucks, bins/ totes, conveyors, etc.)
Use existing supplier New supplier
Modern Materials Handling’s 2010 State of the Industry Study
members are predicting 2010 will be another big year forelectrics, as they strive to meet regulations and keep fuelcosts down. “We do think that sales of internal combustionengine trucks will improve as the economy improves,” saysRufener.
What CEMA seesAnother report shedding a positive light comes from theConveyor Equipment Manufacturers Association (CEMA).CEMA executive vice president Bob Reinfried says theorganization’s latest report shows that conveyor ordersincreased 19% over December 2008 and booked ordersare up 1% from November 2009. CEMA also reported thatDecember 2009 shipments were up 12% over November2009, but down 24% from December 2008.
“From what I’m hearing throughout the industry, every-one is optimistic that we’ve bottomed out,” Reinfried says.“Quotes are picking up and it looks like things are looseningup a bit. As a result, we’re expecting new orders to pick up.But it will take a while for shipments to start to increase.It will be a slow recovery and I wouldn’t expect much morethan a 2% to 3% increase in 2010.”
“We started to seehints of a recovery in
the second quarter of 2009, and we’re
now seeing renewed optimism.”
— John Nofsinger, CEO of MHIA
MMH100401_Outlook_ID 38 4/8/2010 1:09:45 PM
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HANDLING UP HIGH
MMH100401_Eqp_ID 40MMH100401_Eqp_ID 40 4/7/2010 12:15:30 PM4/7/2010 12:15:30 PM
EQUIPMENT REPORT
mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 41
Manufacturing and distribution facilities have long employed a variety of overhead materials handling systems—including track-based conveyance such
as chain and power-and-free conveyors, electrified monorail, and overhead and workstation cranes.
Using space overhead frees up the floor for safer, more efficient movement of products, work-in-process and associ-ated tooling. In addition to decluttering the work zone, these systems offer enhanced ergonomics, plus a means to move items too large to be transported with a fork-based vehicle.
Track-based conveyance For moving products weighing 5 pounds to 1,500 pounds, overhead chain systems are the most common type of over-head handing. Evenly spaced pendants hanging along a single chain are pulled through a single enclosed track, or I-beam track, to carry the loads.
The next level of conveyance is dual-track power-and-free systems. These systems are comprised of a chain track on top, which provides the power, and the free track below, which contains the trolleys that move loads through the system.
Capable of carrying 25 pounds to 25,000 pound loads, power-and-free conveyors are used extensively in conveying materials to and from automation, manual workcells, and hos-tile environments like industrial washers, paint equipment and ovens, according to Brent Brosch, director of product sales for Jervis B. Webb (248-553-1000, www.jervisbwebb.com). “Power-and-free conveyors are extremely flexible, versa-tile and can be programmed to service a few work cells or an entire plant with proven reliability,” he says.
“From a new development perspective, lately there’s been more emphasis put on noise reduction in chain and power-and-free conveyors, with use of non-metallic wheels to reduce the noise in a workplace,” says Brosch. And, to further reduce noise, other components are also being made of non-metallic materials, he adds.
Ideal for carrying a load from Point A to Point B, electrified
monorail systems are best suited for moving high-value productsacross long distances with fewer stops. The system consists of asingle rail or I-beam from which a hook or hoist hangs, providinglateral and vertical movements of loads weighing up to 30,000pounds.
“Monorails have remained very similar in appearance overthe past 30 years, but a lot of subtle improvements have beenmade,” Brosch says. “Previously, most I-beam systems werebuilt for very heavy-duty cycle use, particularly in automotivemanufacturing. Today, other industries with light- to medium-duty manufacturing applications, like appliances and ware-housing, are installing lighter duty monorail systems appropri-ate for their needs.”
Workstation and overhead cranesOffered in multiple types and load capacities, cranes arecomprised of three components:• a stationary or mobile bridge made of rails and carrying
one or more trolleys,• the unit that travels side to side and carries the hoist, and• a lifting device that hooks onto and manipulates a load.
(Left) Workstation cranes allow operators to safely manipulate relatively light loads in a limited area.
Using the overhead space in your facility not only frees up floor space, but also leads to more efficient product movement.
By Sara Pearson Specter, Editor at Large
Power and free conveyors for overhead handling are ideal for feeding materials to and from automation and workcells.
MMH100401_Eqp_ID 41 4/7/2010 12:15:48 PM
Cranes can be manual or power driven, depending on theapplication and the size of the load that has to be moved.
On the smaller scale, workstation cranes enable operatorsin a work cell to safely manipulate relatively light loads. Thesefree-standing units handle product in a relatively limited area,like in production environments.
More workstation cranes are being installed as part of lean-driven manufacturing process changes, says Jeff McNeil, mar-keting manager for Gorbel (800-821-0086, www.gorbel.com).“To enhance the ability to produce multiple products in a sin-gle assembly area, companies are turning to flexible systemsthat maximize the productivity of their operators—installingmore ergonomic workstation cranes and lifting devices to helpusers work smarter,” he says.
Some of the newest workstation cranes are intelligentdevices that combine manual and servo-driven operations,McNeil says. The manual function allows workers to move attheir own pace as they walk to a bin, select a part and guidethe crane to a machining center process. The servo-drivenfunction controls the positioning of the part on the machine,preventing damage to either, by slowing down for part place-ment and release.
Massive overhead cranes move heavy loads that are notpractical to transport with a lift truck over long distances.Ceiling-mounted bridge cranes are often part of the buildingstructure. Top-running, double-girder cranes mount the bridgeon top of the runway and have two girders for the bridge.Always powered, these bridge cranes offer capacities up to
600 tons. Alternately, under-hung cranes have a trolley thatruns on the bottom of the support I-beams. They’re ideal forloads of 15 tons or less.
Gantry cranes look similar to overhead bridge cranes butare not part of the structure of a building. Instead, a gantryconsists of two uprights connected by an I-beam that servesas a bridge for the trolley. They can be either powered or man-ually manipulated and handle capacities up to 5 tons.
Speed control continues to be refined in overhead cranesfor better load handling, says John Paxton, president of DemagCranes & Components North America (440-248-2400, www.demagcranes.us).
“The enhancements include smooth acceleration and
FOR GRADALL INDUSTRIES, manufacturer of excavat-ing equipment for highway, industrial, railroad and min-ing industries, a small part can weigh as much as 2,500 pounds—and large parts range up to 9,000 pounds. This size and mass presented a challenge for handling through their paint system.
To shepherd the small parts through their powder coating line, the company selected an enclosed track power-and-free conveyor system (Jervis B. Webb, 248-553-1000, www.jervisbwebb.com) with two-speed trans-port conveyors in the line that process up to six carriers per hour.
The three-trolley carrier system uses a lowerator to improve ergonomics in the load/unload process. Carriers travel on the slower (3 feet per minute) process line through washer, dry-off and powder booths. The 40-feet-per-minute transport conveyor delivers the carriers to the dry-off oven, cure oven and cooling tunnel. Oven and tun-nel times are adjusted at a control panel, opening when a carrier’s time is up. Control logic ensures that only one set of doors is opened at a time to prevent heat loss.
The system permits Gradall to powder coat all of the parts necessary for three shifts of assembly in a single shift of powder-coating, while improving product flow and reducing the level of rework significantly.
Power-and-free conveyor supports powder coat line
Today’s overhead cranes offer smoother acceleration and deceleration of the hoist and step-less control for improved spotting and positioning.
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EQUIPMENT REPORT
MMH100401_Eqp_ID 42 4/7/2010 12:16:06 PM
deceleration of the hoist and even step-less control, similarto the gas pedal on a car,” Paxton says. “The more you pushon the button, the faster you go, and as you let up, the sloweryou go. That gives the operator improved control for spot-ting and positioning.” This functionality results in improvedproductivity.
A bigger trend in 5-ton and above cranes, says Paxton, isthe integration of smart controls to enhance safety and reducedowntime. “These controls monitor the hoist, store informa-tion including warnings and error codes, and allow the datato be retrieved. By monitoring the load spectrum, users knowhow the hoist is being used and can schedule maintenance asneeded, both predictive and preventive.” This also improves
AFTER RELOCATING TO A NEW FACILITY, Just In Time CNC Machining (JIT) needed a flexible lifting system to meet growing production needs. The company handles parts in a range of sizes and weights, from large produc-tion runs to smaller runs or prototypes.
The facility, which the company leased, provided mul-tiple challenges: high ceilings, multiple columns, CNC machines and loading bays. Due to the layout of the facil-ity, the goal was to install one crane system to service several CNC machines.
Ultimately the company purchased a free-standing workstation crane with three, 23-foot long, 1,000 pound aluminum bridges (Gorbel, 800-821-0086, www.gorbel.com). System supports were staggered to allow 124-foot runways to cover the length of the building and remain centered over each of the machines and work bays. Extra long headers help the positioning of the support columns.
“It’s great having the multiple bridges, because if one is busy, we’ve still got two available, and you’re not wait-ing on someone to finish,” says Jim Alexander, owner of JIT. “The workers really liked the system since day one. Productivity is very good, and we haven’t had any lifting injuries.”
Free-standing workstation crane gives machine shop flexibility
MMH100401_Eqp_ID 43 4/8/2010 11:39:16 AM
safety and reduces downtime due to unexpected repairs,Paxton adds.
Crane controlsDriven by safety concerns, more and more overhead systemsare being controlled by wireless radio remotes instead of wiredpendant control. The wireless method permits the operator torun the crane from a safe distance, while pendants requirethe operator to be near the load as it moves.
Wireless systems include a radio receiver mounted onthe crane and wired into the programmable logic controller(PLC) and motors that are turned on and off by the system.They also include a handheld transmitter that the operatoruses to send a signal to the receiver.
“One of the emerging trends we see in crane controls isremote diagnostics,” says Haroon Inam, vice president ofglobal engineering for Cattron Group International (724-962-3571, www.cattrongroup.com). “This and a multitude of otherreports—including productivity monitoring and safety confor-mance—can be custom-created to examine crane behavior, aswell as operator behavior.”
Reports are generated from the data collected by themachine control unit. “The information can be conveyed to aglobal help desk not only for condition-based monitoring, butalso to enable remote upgrades of software without the needfor a technician to visit each site individually,” says Inam.
EQUIPMENT REPORT
44 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
Flexible workstation cranes are often installed to enhancelean manufacturing through better ergonomics.
BFL SERIES“BIG FRIGGIN
LIFT”BFL lifts are designed to move large loads ormultiple pallets betweenfloors. These lifts willtravel from 8 feet to 18feet and platform sizesranging from 6’ x 8’ upto 8’ x 12’. They are idealfor moving large loads 1-2 floors or up to highstages and mezzanines.
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MMH100401_Eqp_ID 44 4/8/2010 11:39:33 AM
With nine distribution centers throughout the East and Midwest, Maines Paper & Food
Service in Conklin, N.Y., stocks everything a food-service business needs—supplies, fresh and frozen food, dry goods and beverages.
The company’s main 400,000-square-foot facility has 72 docks that experience heavy traffic, shipping out 550,000 cases of product in a typical week during its three-shift operations. To keep distribution oper-ating smoothly, Maines employs a fleet of 174 pal-let trucks, reach trucks and orderpickers (Raymond Corp., 607-656-2311, www.raymondcorp.com) to move product from dock to stock.
Without automated equipment or conveyors, it’s especially important that the fleet operates reliably in Maines’ ambient and cold-temperature environ-ments for product selection, loading and unloading trailers, order picking, replenishment of stock and receiving. If a piece of equipment is down, activity could be down.
“Our lift trucks are one of the most important tools we have in distribution,” says Patrick DeOrdio, vice president of operations for Maines. “Without the reliability of the trucks, we would never be able to take care of our customers and meet all of our material handling needs in the various environments within our facility.”
Maines partnered with a fleet maintenance pro-vider to help achieve higher service levels, profit-ability and safety while reducing time-consuming lift truck equipment management at all of its locations. Through a comprehensive maintenance agreement, two dedicated service technicians are on site at Maines’ headquarters to cover routine and preven-tive maintenance. Additionally, their partner makes it easy to rent extra equipment during busy seasons and change out older equipment for newer models.
“By working with [a fleet maintenance partner], we can focus on what we are good at, and they can focus on what they are good at,” says DeOrdio.
DO WHAT YOU DO BESTLift truck equipment managementprogram keeps company focused on delivering customer satisfaction.
By Lorie King Rogers, Associate Editor
PRODUCTIVITY SOLUTION
mmh.com MODERN MATERIALS HANDLING / A p r i l 2 0 1 0 45
MMH100401_prodsol_ID 45 4/7/2010 2:48:33 PM
Voice+Laser driverless vehicles have industrial grade laser guidance and incorporate voice-directed picking, leaving operators with their hands free to maximize case picking pro-ductivity. At the start of an order, the truck delivers a new pallet to the picker. Then, it automatically moves
with the voice-equipped picker as they verbally confirm picks, and transports the completed pallet to shipping while the next truck brings a new pallet to the picker. During peak periods, pickers with manual pallet trucks can work in conjunction with the system to handle additional throughput. As requirements change, routing plans can be updated and additional vehicles can be added or transferred between sites. Dematic, 877-725-7500, www.dematic.us.
Low-cost AGVs handle up to 4,000 poundsCapable of maneuvering and tow-ing loads throughout a production space, a series of low-cost automatic
guided vehicle systems can be con-trolled with traffic control naviga-tion software. The vehicles come in capacities ranging from 500 pounds to 4,000 pounds, making them ideal for handling smaller loads and increased volumes without additional staff. Features include multiple path programming, a retractable towing pin, remote communication, and
Driverless trucks with voice directed picking
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AGVs
MMH100401ProdFocus_ID 46 4/8/2010 11:34:55 AM
mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 47
programmable optical sensors for safe operation near pedestrians and in confined spaces. The AGVs follow a self-adhesive magnetic tape for simple setup with no floor modifications. Toyota Material Handling, 800-226-0009, www.toyotaforklift.com.
Robotic pallet truck handles 8,000 poundsThe vision-guided GP8 robotic pallet truck frees skilled employees by performing non-value-added work by auto-mating pallet transport. After an operator positions the vehicle’s 96-inch long forks under the pallet, the industrial mobile robot transports pal-lets to an assigned location, automatically positions them, and returns to the original starting point—or other pre-assigned location—for more work. The vehicle handles up to 8,000 pounds and stores 25 miles of learned routes.
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Roller forks handle palletless loads
Using a patented roller fork mecha-nism, the pallet-free automatic guided vehicle eliminates the need for pallets within a facility. The vehicle handles loads on slip sheets and offers stacking and push back rack capability. It may also be used for pal-let handling. The automated system reduces labor costs, product damage and operational costs. HK Systems, 262-860-6715, www.hksystems.com.
MMH100401ProdFocus_ID 47 4/8/2010 11:35:13 AM
A SPECIAL SUPPLEMENT TO
Retailers continue to emerge astrailblazers when it comes tocrossdocking. Just think about
the type of distribution facilities thatthey’ve been building—more dynamicfl ow-through rather than static storage.And it’s all based on retailing’s basicpremise: You can’t make money untilthe product is sold at your stores.
And getting product rapidly to thosestores is exactly what cross dockingaims to execute to perfection. By dis-patching inbound merchandise directlyto outbound shipping, crossdockingminimizes the amount of time goodsspend in non-value-added DCs andthus maximizes their speed to market.
Companies that crossdock not onlyeliminate wasted time moving product toand from storage, but they also cut downon capital-intensive inventory by shippingimmediately to fulfi ll customer demands.
Some degree of automation is typi-cally needed from both the software andthe equipment perspective. Here are thelatest developments, innovations, andbreakthroughs that have made cross-docking easier and faster.
Smarter softwareRecent developments in information
systems and software solutions havecreated more opportunities for cross-docking, allowing for more visibility inthe supply chain and improved datasharing between trading partners. Hereare three new software capabilities:
1. More opportunities. Older sys-tems were only able to do simple, “pure”crossdocking. Only if it was a perfectmatch of the entire license plate goingdirectly to an outbound shipping doorwould that product be considered as anopportunity to crossdock.
Software provider Manhattan Asso-ciates has taken it to the next level byallowing orders, and even order lines, tobe split. “To avoid starving inventory atstore shelves, most retailers prefer ship-ping half of that order line immediatelyrather than shipping none,” explainsEric Lamphier, Manhattan’s seniordirector of product management. If onlyone, instead of two cartons, of a popularelectronic hamster toy is received, the
system automatically splits the orderand allocates that one carton immedi-ately for crossdocking.
2. Sending electronic noticesfrom around the world. Conductingcomputer-to-computer business trans-actions over the Internet has becomecommonplace. By allowing access toWeb-based portals, software providershave enabled suppliers to create andtransmit Advance Shipment Notifi ca-tion (ASN) information to their retailcustomers.
An ASN is an electronic fi le trans-mitted from suppliers to retail custom-ers, providing advance notice of whatproducts are being shipped to theretailer’s DC and their estimated timeof arrival. It facilitates crossdocking byautomating the receiving process, allow-ing for allocation of a product even whilein-transit, and by providing DC managerswith a heads-up when planning resourcesfor inbound receipts.
Managers are realizing greater visibil-ity in their supply chains and are now
Here are the latest developments, innovations, and breakthroughs
that are making crossdocking easier and faster than ever.
By Maida Napolitano, Contributing Editor
Crossdocking:The latestand greatest
48S A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
VERSATILITY MATTERSQuality Wildeck construction and versatility make the V-lift™ the ultimate lifting solution.
In today’s ‘green’ building designs, floor space is at a premium and moving up, not out, is definitely preferred. Look no further than the V-Lift™ from Wildeck – the industry leader in space optimization. The single cylinder hydraulic system eliminates all moving hoses, cables, and chains. Fewer components means easy installation, reduced maintenance and longer service life. To get more value out of your operation, contact a Wildeck representative today.
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MEZZANINESCapacity Matters Efficiency Matters
LIFT SYSTEMSSafety MattersGUARDING PRODUCTS
able to make better decisions—especiallyin the case of the unexpected. “Whena shipment is held up at the port,” saysPrashant Bhatia, director of solutionsmanagement at SAP, “it can trigger logicback to say that I’ve got a problem. I canno longer allocate that inventory on thatparticular shipment as I thought I could.”
3. One database, one system, onesupply chain. In the last few years, soft-ware providers have been pulling all oftheir products onto a single supply chainprocess platform. “It’s fairly new,” saysLamphier. “Various components havebeen integrated into that supply chainprocess platform longer than others, butactually moving our WMS onto it hasbeen a more recent development—justwithin the last quarter or two.”
SAP uses its enterprise resourceplanning (ERP) system as the centralrepository of information of supply anddemand, as well as inventory, for theentire supply chain. And the modules all
talk to each other. Transportation man-agement systems (TMS) in conjunctionwith the event management moduleshelp optimize freight, determine pick-upwindows, determine carriers, keep trackof in-transit times and create ASNs.
That ASN not only gets sent backto the ERP for visibility, but it alsogets sent to the WMS where the sys-tem uses the information to plan labor,equipment and resources at the receiv-ing dock. When the physical productarrives, logic within the WMS, basedon the receipt of goods, determinesmatches against actual demand.
Smarter, speedier equipment With more retailers crossdocking
over 50% of their items at the case level to their stores, equipment innovations have centered on conveyor sortation systems, print and apply mechanisms, and automatic identifi cation technolo-gies. Here are three new equipment
advances:1. Smaller gaps and self-regulat-
ing conveyors. In the last year, thesliding shoe sorter has undergone note-worthy transformations. “By doing a par-allel divert, we can now run the packagescloser together and get a higher through-put on the same system,” reports KenRuehrdanz, manager for Dematic’s distri-bution and warehousing markets.
The sliding shoes that used to physi-cally push the cartons off the sorter atan angle can now run those shoes inparallel, enabling smaller gaps betweencartons—which were previously from 6inches to 8 inches—down to 3 inches.
With more dense traffi c on conveyors,crossdock operators can run their con-veyors at a lower speed while still achiev-ing the same throughput. Slower speedsequal less wear and tear, decreased energyusage and less maintenance.
Another conveyor breakthrough isautomatic speed control. “The whole
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MMH100401sup_Crossdock_ID 49 4/8/2010 11:36:20 AM
system can now self-regulate its speeddepending on the volume that’s inboundon the system,” says Ruehrdanz. Thewarehouse control systems (WCS) soft-ware makes that decision using elec-tronic sensors that’s constantly moni-toring where all the cartons are andhow they’re fl owing.
2. Print and apply on the fl y.When your supplier is a fancy designerfrom Italy who can’t be bothered withlabeling, you’ve got to be ready withPlan B. The use of print and apply sys-tems allow crossdock operators the fl ex-ibility to deal with inadequately labeledcartons so that proper labels can beprinted and applied on cartons as theytravel along conveyors allowing them tobe immediately cross docked.
“When they fi rst started out, thesesystems could process 10 cartonsper minute (cpm) maybe,” says SteveHaskell, vice president for L.A.-basedSDI Industries, a designer, integratorand manufacturer of materials handlingsystems. “Now you can get 30 cpm reli-ably with a tremendous range of print-ing and software capabilities.”
3. Crossdocking with voice andRFID. With a scan of the pallet licenseplate, voice-directed operators on thereceiving dock can be instructed toquickly move their crossdock pallets to
the correct shipping doors without hav-ing to look at a terminal.
By attaching an RFID tag on a pallet,the simple act of moving the pallet froma tractor trailer through a receiving por-tal not only acknowledges receipt, butallows the automatic download of criti-cal information so automatic crossdockallocations can be made.
The next generation of RFID-enabled lift trucks go a step furtherby combining RFID data collectionwith optical real-time location sys-tems (RTLS) to precisely record palletmovement without any operator typingor scanning. As adoption increases,users are investigating the feasibility ofusing RFID-based technology to elimi-nate the need for some EDI communi-cations by encoding the advance ship-ping information onto the RFID tag toreduce the number of EDI messages.
Vision for the futureWith more trading partners shar-
ing data in real time along withgreater levels of systems integration,Manhattan’s Lamphier envisions more“dynamic crossdocks” that constantlylook for opportunities to fl ow-throughproduct, even while still in transit.SDI’s Haskell sees equipment improv-ing and becoming more affordable.Soon, you’ll simply be running out ofexcuses not to crossdock.
50S A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
» A Special Supplement to MODERN MATERIALS HANDLING
This gapping conveyor creates mini-mum gaps between cartons. Minimum carton gaps allow the conveying and sorting systems to accommodate more throughput at a slower operating speed.
A sliding shoe sorter diverts cartons using a parallel diverting method.
MMH100401sup_Crossdock_ID 50 4/8/2010 11:36:23 AM
GREENING THE INDUSTRYWelcome toGreening the Industry,a special sponsored section of Modern Materials Handling.Keeping with the theme of the cover story, companies from throughout the materials handling industry, listed here alpha-betically, tell you about how they’re helping their customers beat a bad economy.
This section is designed to provide you with information and insight into companies that can help you meet your materials handling challenges.
ADVERTISEMENT
mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 51
100% Recycled EarthSaver™ BinsAkro-Mils, a North American leader in storage, organization and transport products, introduces a new family of products — the EarthSaver™ Series — which features its popular AkroBins® and
Shelf Bins made from 100 percent recycled plastic.
The EarthSaver Series offers an eco-friendly choice in plastic storage and organization products, while boosting productivity in the workplace.
OTHER BENEFITS INCLUDE:• The same great Akro-Mils products — now made from 100% recycled material.• Three color options — Hunter Green, Sandstone and Terra Cotta.• Easy to label for quick inventory identifi cation.• A positive impact on the environment.
Designed for use in virtually any setting — including manufacturing, healthcare, retail and distribution — bins in the EarthSaver Series can be used alone or with bundled Akro-Mils steel shelving, wire shelving and pick racks to create a complete storage and organization system supporting 5S Lean and other initiatives.
For more information on the EarthSaver Series or to request a complete catalog, contact Akro-Mils at (800) 253-2467, fax (330) 761-6348, or visit the company’s Web site at www.akro-mils.com
Akro-Mils1293 S. Main St.Akron, OH 44301800-253-2467www.akro-mils.com
MMH100401_Grn_profileAds_I 51 4/8/2010 3:00:05 PM
52 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
ADVERTISEMENTPROFILES GREENING THE INDUSTRY
Buckhorn IBCs Offer ‘Green’ Alternative for Liquid, Bulk Ingredient HandlingBuckhorn’s Caliber® and Citadel™ Intermediate Bulk Containers offer revolutionary, environ-mentally friendly packaging solutions for material handling — they are injection and structural foam molded, compact, collapsible, and designed to handle both fl uid and dry products.
Reusable container systems from Buckhorn eliminate the need for large quantities of disposable packaging mate-rial and the associated costs for disposal. Collapsible bulk container systems save on return transport compared to a rigid system, and reusable plastic container systems in closed-loop supply chains dramatically reduce environmen-tal impact compared to other common systems for liquid handling.
The design features of Caliber® and Citadel™ IBCs guarantee a long service life and safe delivery of your products in an environmentally conscious way.
For more information on IBCs or to request a complete cata-log, contact Buckhorn at (800) 543-4454, fax (513) 831-4402, or visit the company’s Web site at www.buckhorninc.com.
Buckhorn55 W. TechneCenter Dr.Milford, OH 45150
800-543-4454www.buckhorninc.com
CHEP, the global leader in pallet and container pooling, continues to show its commitment to environmental stewardship by confirming the sustainability creden-tials of its equipment pooling solution.
A life cycle inventory (LCI) analysis conducted in 2009 shows the CHEP system creates significantly less solid waste, requires less total energy and reduces more greenhouse gas emissions than other common shipping platform solutions, including pooled plastic pallets and limited use white wood pallets.
According to the study, the CHEP system generates 48% less solid waste, consumes 23% less total energy and
generates 14% less greenhouse gas than pooled plastic pallets. Compared with limited use white wood pallets, the CHEP system generates 50% less solid waste, consumes 19% less total energy and generates 5% less greenhouse gas.
Calculate for yourself at www.chep.com/knowthefacts/MMH2
CHEP Offers the Greenest Pallet Solutions
CHEP8517 South Park Circle / Orlando, FL 328191.888.CHEP.111
MMH100401_Grn_profileAds_I.indd 52 4/8/2010 12:57:50 PM
mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 53
PROFILESADVERTISEMENT GREENING THE INDUSTRY
Green Solution:Demand Response Active and Passive Systems
For those with battery rooms, EnerSys® is participating in a current study with Southern California Edison tomeasure the merits of a new “elegant controlled” battery management system. This system will allow customers to participate in Utility Demand Response programs - some of which are paying $300 per kW. Thereturn on investment is almost immediate in DR programs.
EnerSys hopes to have this study published and product available shortly. Demand Response is expected tobe a large Utility Program into 2010 and beyond.
To the right is an electrical usage triangle developed by Pacific Gas & Electric, with a focus on conservation andefficiency the base components.
EnerSys is your expert resource for operational cost savings, greenhouse gas reduction methods, fossil fuel toelectric conversion options, and energy managementstrategies. Our nationwide sales and service network includes a dedicated staff with expertise in energy management to help you achieve your goals.
www.enersysmp.com 1-800-ENERSYS
MMH100401_Grn_profileAds_I.indd 53 4/8/2010 12:57:52 PM
54 A P R I L 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
ADVERTISEMENTPROFILES GREENING THE INDUSTRYLeading Edge GREEN Power Solutions
LEADING EDGE POWER SOLUTIONS1-877-7HAWKER www.hawkerpowersource.com
At HAWKER, green is not a color, it is a culture. Since the introduction of energy-saving LifePlus® smart charging technology over 25 years ago, HAWKER has led the materials handling industry with clean, innovative products and processes that maximize productivity and minimize environmental impact.
High-frequency smart chargers deliver the greatest effi ciency and highest power factor available – reducing utility consumption and demand while prolonging battery life and reducing water usage. HAWKER’s LifePlus®
TC3 and LifeSpeed™ 3000 high-frequency smart chargers offer the operational fl exibility of opportunity and fast charging with least-cost electrical effi ciencies.
Resource-friendly batteries. HAWKER, winner of the American Environmental Review award, is a model for controlling environmental integrity at the point of manufacture. Our Ooltewah, TN plant is the industry leader in environmental compliance, and was the fi rst to introduce Water Less® technology which utilizes 20% less water than standard batteries. Of course, HAWKER offers a recycling program that meets all EPA standards and guidelines.
Single-source green solutions. HAWKER manufactures both batteries and chargers. This allows HAWKER to design complete power systems that can optimize productivity and minimize cost. HAWKER’s exclusive “Harness the Power” on-site assessments analyze operations and provide specifi c recommendations for improving material handling productivity.
Call 1-877-7HAWKER to learn more about these Leading Edge GREEN Power Solutions.
Companies that simultaneously work to cut their carbon footprint and streamline their supply chains can realize substantial economic and environmental benefits.
HK Systems, the leading automated material handling and supply chain software total solutions provider, understands the greening of the supply chain can be a difficult and complex process. HK has developed and designed “green” facilities that resulted in lower operational costs, waste and environmental impact.
Discover how HK Systems can and your “green” facility today.
Visit www.hksystems.com or call 1-800-HKSYSTEMS to learn how automation and software will empower your green initiatives.
W W W . H K S Y S T E M S . C O M
MMH100401_Grn_profileAds_I.indd 54 4/8/2010 12:57:53 PM
Intelligent Global Pooling Systems
225 E. Robinson Street, Suite 200Orlando, FL 32801
Phone: 800-884-0225
www.igps.net
iGPS was formed in 2006 to bring to market the fi rst
advance in pallet rental in over six decades: highly engi-
neered all-plastic rental pallets that are “lighter, stronger,
safer and greener” than pallets made of wood. In just 3
years of operation, iGPS’ service has been adopted by
many of the most respected and environmentally respon-
sible companies in the world.
iGPS’ state-of-the-art pallets are 30 percent lighter than
wood, which saves on transport costs and fuel usage while
reducing green house gas emissions. iGPS is also setting a
new standard for pallet hygiene and food safety. Its pallets
do not absorb liquids that can lead to bacterial contamina-
tion and, unlike wood, never need treatment with toxic pesti-
cides or other chemicals. iGPS pallets are 100% recyclable,
easier to handle and, because they eliminate protruding
nails and splinters, reduce workplace injuries and damaged
equipment. Embedded RFID tags provide unprecedented
supply chain visibility, enabling tracking and tracing of ship-
ments and facilitating product recalls. In short, it’s tomor-
row’s supply chain technology—today. www.igps.net
mmh.com MODERN MATERIALS HANDLING / A P R I L 2 0 1 0 55
PROFILESADVERTISEMENT GREENING THE INDUSTRY
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3,500 lbs. (1,590 kg) at 24” (600mm) Load Center
LANDOLL CORPORATIONMATERIAL HANDLING PRODUCT DIVISION
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• Triple and Quad Masts with Lift Heights to 26’ (7.92M) • AC Traction Motor and Controller • AC Hydraulic Motor and Controller• AC Electronic Steering• 110 FPM Lift Speed and 7 MPH Travel Speed• 90º Rotating Mast and 20” (500mm) Shift For Easy Load Insertion and Retrieval• 56” (1.42M) Stacking Aisle with 48” x 40” (1.2M x 1M) Load• Wire Guidance Available for “Steer Free” Very Narrow Aisle Performance
The NEW SLT30AC
MMH100401_Grn_profileAds_I.indd 55 4/8/2010 12:57:57 PM
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ADVERTISEMENTPROFILES GREENING THE INDUSTRY
Reusable Plastic Packaging Drives Sustainability for World-Class Companies
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As leading companies continue to drive sustainability
in their business, they scrutinize every point of their
supply chain, including the packaging used to move
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Reusable plastic containers, pallets, dunnage and
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ORBIS Corporation, North America’s leader in
reusable plastic packaging, helps world-class
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Using life-cycle assessments to compare
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impact. By design, reusable containers and
pallets are used over and over during the course
of their service life. At the end of their life, they
can be recovered, recycled and reprocessed into
new packaging products.
ORBIS is a part of Menasha Corporation, the 3rd
oldest family owned business in the United
States. As a steward of sustainability, ORBIS is
committed to a better world for future genera-
tions. ORBIS tracks and measures its own
resource utilization to continuously conserve
natural resources and reduce waste. To learn
more, please contact ORBIS today.
Sustainable Material Handling
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A FAMILY TRADITION OF GROWTH, SERVICE AND INNOVATION
From our beginning in 1913 as a
maker of wooden crates, Rehrig
Pacific Company has produced a
continuous stream of sustainable
transport packaging products
for industry.
Today, Rehrig is a world leading manufacturer of reusable and recyclable plastic pallets and containers. Our various product lines from milk crates to distribution pallets save millions of tons of packaging waste from reaching landfills every year.
A typical Rehrig customer is looking for reusable storage and transport containers or platforms to handle their products efficiently through the supply chain. Driving out costs and reducing their carbon footprint are vital factors. Depending on customer requirements, our products can contain post-consumer recycled materials (PCR) including HDPE from
milk jugs or detergent bottles. Post-industrial recycled materials such as PP and HDPE from old crates, trays and pallets can be reused up to100%.
Rehrig Pacific roll-out carts and collection containers are extensively used in recycling and waste collection programs throughout North America. Rehrig directly closes the loop in many programs by buying the PCR collected which helps cities expand their recycling programs and dramatically reduces plastic packaging waste. Rehrig now offers programs to major retailers to collect and reuse their cardboard boxes instead of sending perfectly good packaging to landfills or recycling, before its time.
For almost 100 years, Rehrig Pacific Company has been a leader in sustainability and environmentally-friendly business practices.
For more information contact:
Steve Harrison, Sales DirectorMaterial Handling Business GroupRehrig Pacific Company1000 Raco CourtLawrenceville, GA 30045Phone: 770-339-9888Toll-Free: 800-241-9693Email: [email protected]: www.rehrigpacific.com
MMH100401_Grn_profileAds_I 56 4/8/2010 3:00:07 PM
We are the number one manufacturer of spiral conveyors in the USA. Our products include Spiral Conveyors, Spiral curves, Mass Flow Spirals, Continuous Lifts, Vertical Accumulation Buffers, Bucket Elevators, Incline and Decline slat Conveyors. All products can be delivered in powder coated carbon steel, stainless steel, wash down or freezer versions.
Our products are crafted with great care in our modern Yorktown, Virginia manufacturing plant. Our full inventory of spare parts enables us to provide the high level of service our customers have come to expect from Ryson.
Our professional staff is always available to assist on how to best apply, integrate, install and service our products. Many of our customers visit our plant for hands- on training and to witness their equipment being factory tested. Some customers also take advantage of our modern test facility to make sure their particular products will convey satisfactorily.
We also think green at Ryson and our products support sustainability in many ways. They consume less energy and need less floor space than conventional methods. Ryson products require little maintenance and have a very low noise level. All bearings are sealed for life and do not need further lubrication. Our Mass Flow Spirals do not need water lubricants for proper flow. All Ryson products are modular in design and are easily convertible in the field to meet emerging needs.
Ryson International, Inc.300 Newsome DriveYorktown, VA 23692
www.ryson.comPhone: (757) 898-1530Fax: (757) 898-1580
VERTICAL CONVEYING SOLUTIONS
Save space and increase throughput with Ryson Spiral Conveyors.
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Modern: Allan, what will be happening around education at NA 2010 in Cleveland this month? Howie: We have a number of events. On Monday, we’re sponsoring a “workforce of the future” keynote address by three speakers who are heavily involved in material handling education. At MHIA, we’re very focused on working with technical high schools and community colleges to provide the skill sets required for a job in distribution. We’ll have a class-room day, where we invite students and instructors from those agencies to attend the show and meet with our members. And, we’re inviting instruc-tors and program directors who are contemplating a program in materials handling. To use a well-worn word, we’re going to “network.“
Modern: Why should education at this level be important to our readers?Howie: Our industry is going to be in desperate need of a skilled labor force to operate distribution centers and warehouses in the very near
future. Our leadership needs to rec-ognize this. They also need to com-municate with their local schools and community colleges the skill sets they need at the entry level in their facili-ties. Those folks are educators. If you tell them what you need, they can teach it.
Modern: How long has this program been going on and where does it stand today? Howie: We started about five years ago, working to assist in outplace-
ment training for the U.S. Marines. It’s mushroomed from there. We devel-oped a career cluster known as TDL, which stands for transportation, dis-tribution and logistics. It’s now being emphasized as a career path for young people in community colleges and high schools. We’ve adapted our instructional materials for the Marines for them. At the last count, we had 25 to 30 high schools and community colleges on board, and in some cases, they’re starting at the 9th grade level. It’s growing every day.
TITLE: Director of Continuing Education and Professional DevelopmentLOCATION: Charlotte, N.C. EXPERIENCE: 11 years at MHIA FOCUS: Developing materials and support for high schools, technical and community colleges, military, governmental agencies and corrections education in the area of warehousing and distribution
Allan HowieMaterial Handling Industry of America (MHIA)
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