Material Handling

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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

July 2012

SPECIAL REPORT

Top 20 SCM softwaresuppliers 24EQUIPMENT REPORT

Palletizers: Putting product in its place 28BEST PRACTICES

Food and Beverage: Keeping up with the SKUs 36

Adam Wood, director of logistics, Tognum America

TOGNUM AMERICA:

Around the world in one to three days 16

Reduce Energy Use and WearWith Automatic Speed Control

Why run your convey and sort system at top speed all day? Your operation’s activity goes up and down. With Automatic Speed Control, the convey and sort system adjusts its speed up or down to match the actual flow required. The speed of the merge, induct, sorter and take-away conveyors all adjust automatically to accommodate surges and declines in carton flow. In a typical system, the speed will vary from 250 feet per minute up to 540 feet per minute depending on the rate of carton flow. This means LESS: energy, wear, maintenance, and sound. In addition, Automatic Speed Control improves carton control, extends the life of your system, and reduces the overall cost to operate.

To find out how more about how to optimize your convey and sort operation visit www.dematic.com/na/automatic-speed-control or contact us at [email protected] or 1-877-725-7500.

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The MaTerial handling indusTry of america (Mhia) and the association for automatic identification and Mobility (aiM) recently announced the establishment of a joint award honoring allan gilligan, a revolutionary developer of supply chain standards across multiple industries.

The award will be presented to a member of the industry who has made outstanding contributions to the development of automatic iden-tification and data communications (aidC) applications. The recipient

of the award will be announced at the aiM industry awards during the aiM summit on sept. 10, 2012 in rosemont, ill.

“aiM is pleased to collaborate with long-standing partner, Material handling industry for this award,” said Chuck evanhoe, aiM board chairman. “aiM’s roots are in Mhi, and our organizations are synergistic enough to warrant significant recogni-

tion for individuals who contribute to both.”

“Mhia is happy to jointly sponsor this award with aiM to honor allan gilligan. allan led committees and participated anywhere he was needed to bring together a wide range of interests in the name of cre-ating automatic identifica-

tion standards that made the industry work better,” said george Prest, CeO of Mhia.

UP FRONT 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

mmh.com Modern Materials Handling / J u l y 2 0 1 2 3

storopack to open division in Brazil

MHia and aiM co-sponsor allan gilligan award

avery Weigh-TrOnix liMiTed, a business unit of illinois Tool Works, has acquired Central Weighing limited. avery Weigh-Tronix is a global supplier of weighing solu-tions, operating out of Fairmont,

Minn., with head-quarters in the uK.

Central Weighing specializes in vehicle weighing, tracking and man-agement systems. it also offers a unique Web-based tracking and monitoring system developed for municipal vehicles and the waste industry marketed under the exactrak name.

“avery Weigh-Tronix is one of the leading industrial scale and weighing system manufacturers

in the world. The acquisition of Central Weighing will bring a new depth of innovative products, allowing us the opportunity to expand our global reach and bring added value to the market by leveraging existing distribution networks,” said Peggi Trimble, general manager of the industrial division at avery Weigh-Tronix.

avery Weigh-tronix acquires Central Weighing

sTOrOPaCK, WhiCh sPeCializes in protective packaging and headquartered in germany, has announced the establishment of business operations in Brazil to serve the Brazilian market and other south american markets more effectively.

The Packaging division not only offers protective packaging for flexible use such as air cushions, paper pads, Pu foam packaging systems and loose fill cushioning materials, but also system integration into customers’ packaging processes.

The air cushion system and the paper pad system will initially be marketed into the region. The introduction of the packag-ing system for smaller requirements is in preparation.

as The neWesT siTe in the national science Foundation-funded industry & university Cooperative research Program for safety, security, and rescue research Center (ssr-rC), The university of north Carolina Charlotte (unCC) is the only center focused on robotic technologies for human safety in the materials handling, manu-facturing and healthcare industries.

The unCC center is seeking to partner in research with manufacturing and materials handling indus-try stakeholders. Manufacturing and materials handling part-ners can join the unCC ssr-rC as members to

leverage and expand their investment in robots for automating assembly and materials handling processes.

research center focuses on robotics for human safety

the UnCC center focuses on robotic technologies for human safety.

allan gilligan

12YL

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mmh.com MODERN MATERIALS HANDLING / J U L Y 2 0 1 2 5

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

VOL. 67, NO. 7

DEPARTMENTS & COLUMNS 3/ Upfront

7/ This month in Modern

12/ Lift Truck Tips: Leasing

14/ Packaging Corner: Sustainability

41/ Special Section: Corporate Profiles

66/ Focus On: Overhead handling

70/ Product Showcase

74/ 60 seconds with...

NEWS 9/ Permira funds to acquire Intelligrated

10/ Intelligrated aims at growth

11/ NACCO seeks to spin off materials handling business

COVER STORYSYSTEM REPORT

16 Around the world in one to three days Tognum America’s service parts DC in Brownstown, Mich., services the company’s diesel engine needs worldwide with a new order fulfillment solution.

22 Bringing goods to the personTognum’s mini-load automated storage and retrieval and warehouse management systems are the primary engines behind order fulfillment in the Brownstown DC.

FEATURESSPECIAL REPORT

24 Top 20 SCM software suppliersModern’s annual look at the supply chain software market revealed that the industry grew significantly in 2011.

EQUIPMENT REPORT

28 Palletizers: Putting product in its placeHere’s a look at how palletizing equipment improved productivity at these five operations.

FOOD & BEVERAGE

36 Keeping up with the SKUsThe food and beverage sector is ripe with unique and difficult materials handling challenges due in part to the growing number of product choices.

PRODUCTIVITY SOLUTION

40 Mobile computing equipment furnishes real-time data City Furniture installs forklift-mounted computers to track inventory in real time and honor its promise of same-day, seven-day-a-week delivery.

SUPPLEMENT

58 Lift trucks: Understanding the economic lifespanMore savvy lift truck fleet managers are realizing that buying, renting or leasing practices set the tone for future savings.

60 seconds with... Greg Aimi,research director, Gartner

Modern Materials Handling® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite 200, Framingham, MA 01701. Annual subscription rates for non-qualifi ed subscribers: USA $119, Canada $159, Other International $249. Single copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 USA. Periodicals postage paid at Framingham, MA and additional mail-ing offi ces. POSTMASTER: Send address changes to: Modern Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in whole or part without written permis-sion of the publisher is prohibited. All rights reserved. ©2012 Peerless Media, LLC.

®

Adam Wood, director of logistics, and his team at Tognum America implemented a new order fulfi llment solution.

Complex orders with diverse temperature

requirements were processed manually

as multi-box shipments, resulting in high

operating costs and potential customer

confusion. With our help, IDEXX implemented

an automated system to consolidate

orders, simplify material movement and

decrease labor travel. Most importantly,

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With a 27% improvement in labor

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IDEXX doesn’t worry about the health

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they can stay focused on improving the

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visit forte-fastest.com.

IDEXX Laboratories, one of the world’s fastest-growing providers of diagnostic and information technologies for animal health, needed to analyze its global distribution to better serve the more than 50,000 veterinary practices that rely on their products.

The fastest-growing companies are making distribution their FORTE.

SUPPLY CHAIN AND FACILITY OPTIMIZATION | DISTRIBUTION CENTER DESIGN AND BUILD | SYSTEMS INTEGRATION | SUPPLY CHAIN SOFTWARE

Supply chain’s best friend

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Certificates of Merit for Journalistic

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MICHAEL LEVANSGROUP EdItORIAL

dIRECtOR

This monTh in modern

In business, as in life, the tougher the chal-lenge you face the smarter you have to work to see your way through to a resolu-

tion—and never did the readers of Modern meet a tougher battle than “doing more with less” during the recession.

But according to the latest numbers that our research partners at Gartner dug up on the worldwide market for supply chain man-agement (SCM) software, it appears that many Modern readers have indeed learned some tough lessons and are preparing to be equal to the task, especially when it comes to working smarter by leveraging the enabling benefits of technology.

According to Gartner, the worldwide market for SCM software applications, main-tenance and services came in at $5.2 billion in 2011, an extremely impressive 12.1% jump over 2010. In fact, Gartner has projected a compound annual growth rate of SCM soft-ware of 8.7%, which should just about double the size of the market over the next 10 years.

So, what’s driving supply chain orga-nizations to finally be more aggressive in SCM software adoption? Gartner’s Chad Eschinger, vice president of supply chain research, tells our Bob Trebilcock this month that the recession era validated six key driv-ers that will continue to push the adoption of SCM software—and none of them should come as any surprise considering the lean environment Modern readers now find them-selves managing within.

I’ll certainly won’t give away too many of the details that Trebilcock unveils starting on page 24, but I will touch on just one of the drivers that illustrate the broader supply chain thinking that is pushing warehouse and DC management professionals to bet-

ter integrate operations with that of other aligned supply chain functions—and soft-ware adoption is proving to be the enabler.

Clearly, the top driver that caused the most acute pain point for many of our readers during the recession was the call to “improve customer service” while your equipment and labor budget were being cut to the bone. According to Eschinger, it will certainly remain the top reason companies will continue to invest in SCM software in the future.

“More with less” is a mantra that stuck, but your internal and external customer demands are now greater than ever.

According to Eschinger, what many sup-ply chain organizations learned once they adopted supply chain planning (SCP), more robust warehouse management systems (WMS), and started to integrate data from transportation management systems (TMS) was that they were able to improve demand planning, orchestrate supply chain activities, and gain an overall visibility that they had never had in the past.

“The floods in Asia and the earthquakes put a spotlight on the complexity in today’s networks,” says Eschinger. And in turn, many users were able to manage the dis-ruptions, be more nimble, shift freight and inventory on a dime and keep costs in line all while meeting customer expectations.

We continue to discover more and more case studies of readers who have used the management pressures of the recession as a springboard to software adoption, and the Gartner numbers certainly validate that fact. And when you think about it, the recession has generated many silver linings; but the fact that we’re working smarter through technol-ogy may have the longest-lasting benefit.

Recession’s silver lining

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AUTOMATION

Permira funds to acquire IntelligratedLEADING AUTOMATED MATERIALS HANDLING SOLUTIONS PROVIDER HAS ENTERED AGREEMENT TO BE ACQUIRED BY A HOLDING COMPANY IN A TRANSACTION AT A VALUATION IN EXCESS OF $500 MILLION.

INTELLIGRATED, A LEADING North American-based provider of auto-mated materials handling solutions, services and products, announced that it has entered an agreement to be acquired by a holding company owned by the Permira funds in a transaction at a valuation in excess of $500 million. Intelligrated’s manage-ment, led by founders Chris Cole and Jim McCarthy, will maintain a signifi -cant stake in the company as part of the transaction and will continue to lead the company.

Intelligrated designs, manufac-tures and installs complete materials handling automation solutions for the warehousing, distribution, consumer product manufacturing, postal and parcel markets. Solutions include conveyor systems, sortation systems, palletizers and robotics, order fulfi ll-ment systems, warehouse control software and advanced machine con-trols. Intelligrated will remain head-quartered in Mason, Ohio, a suburb of Cincinnati, and has operations throughout the United States and in

Canada, Mexico and Brazil.Intelligrated is No. 10 on

Modern’s Top 20 Systems Sup-pliers list reporting $435 million in 2011.

According to company offi -cials, the Permira funds’ invest-ment will support the company’s growth opportunities, including further penetration of its customer base in North America, emerging markets expansion in partnership with its global customers, increased product offerings and global capabili-ties through investment and selective M&A.

“Intelligrated is well-positioned to capitalize on the growing demands on companies to increase supply chain effi ciency and better serve the evolving needs of their custom-ers,” said Richard Carey, partner and co-head of the Global Industrials Group at Permira. “Already a market leader, the company is continuing to grow, as evidenced by the ongoing expansion of the facilities in Mason, which will enhance Intelligrated’s

ability to provide advanced solutions for its blue-chip customers.”

John Coyle, partner and head of North America at Permira added, “This investment fi ts squarely into the Permira funds’ strategy. It involves a team working across three of our core investment sectors—industrial services, consumer and technology—and is wholly consistent with our approach in North America, which is to fi nd leading companies in the U.S. who can utilize our unique ability to leverage our deep ties in Europe, Asia and Latin America to realize their international potential.”

“This is a very exciting new chapter for our company, and we are thrilled that a world-class in-

10 J U L Y 2 0 1 2 / MODERN MATERIALS HANDLING m m h . c o m

vestment fi rm such as Permira has recognized the growth potential in our business,” said Chris Cole, CEO of Intelligrated. “This is a strong endorsement for Intelligrated and our highly talented workforce, and we look forward to taking advantage

of the unique global perspective and industry insight that the Permira funds will bring.”

The transaction, which is subject to regulatory approvals and custom-ary closing conditions, is expected to close in the third quarter of 2012.

By Bob Trebilcock, Executive Editor

THE MATERIALS HANDLING INDUSTRY was in the news recently with an acquisi-tion valued at more than $500 million. This time I’m not talking about Amazon’s $775 million acquisition of Kiva Systems. Rather, it was the announcement on June 8 that Intelligrated has agreed to be ac-quired by a holding company owned by the Permira funds. The deal is expected to close in late July or early August.

While Kiva has seemingly gone quiet since the Amazon acquisition, leading many in the industry to wonder whether it will remain in the market, Intelligrated’s management remains fi rmly in control of the company’s operations, said Chris Cole, Intelligrated’s CEO. “I want to make very, very clear that the company man-agement remains very heavily invested in Intelligrated and that will continue,” Cole told Modern. “There is no change in the operations of the company.”

Instead, the deal represents a recapi-talization that will give Intelligrated the fi nancial strength and international ex-perience to grow “as we want to grow,” Cole said.

In many ways, Intelligrated’s is a story of rapid and noteworthy growth. The com-pany was launched on Sept. 4, 2001, one week before the 9/11 attacks. Since then, it has grown into a serious international player. By Modern’s estimates, Intelligrated is likely the No. 2 systems integrator in North America behind Dematic. Along with a signifi cant presence in Central and South America, Cole said the company has had real success north of the border with companies like Canadian Tire and Forzani. “Frankly, we’ve been very popular with U.S. multi-nationals expanding into Canada,” he said. He expects to approach or top $500 million in worldwide sales in 2012.

That growth led to the change of fi nancial partners. Along with capital from Cole, co-founder Jim McCarthy and the Intelligrated management team, the start-up was funded by Gryphon Inves-tors. Additional capital was added in 2006 by Tudor Investors. Nearly 11 years later, Gryphon remained an investor. That’s a lifetime in the investment world.

What’s more, Intelligrated was the largest investment in Gryphon’s portfolio. To take the company to the next level meant bringing on investors with more fi nancial strength. Enter Primera. “They’re a $26 billion family of funds,” Cole said. “They not only have the fi nancial strength to help us grow, they have resources and a footprint outside of the U.S. that can help us expand our geographic reach.”

What’s next for Intelligrated? Cole

ANALYSIS

Intelligrated aims at growth

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outlined several plans:International expansion: With Europe

slowing, Intelligrated plans to expand its existing presence in Latin America and look for opportunities in Asia.

Expansion of services: Expect to see more of an emphasis on concepting, analysis, design and after-market services. “Right now, we’re running the maintenance departments for some of our customers,” Cole said. “That’s something we couldn’t provide as a start-up company. Now that we have an installed base, we can fl esh out those services.”

Expansion of hardware and software offerings: “I think we have a very strong product line, but there are segments and niches that we don’t fi ll,” Cole said. “We’ll continue to look for ways to broaden our appeal.” While Cole declined to specify the hardware and software technologies he’s interested in adding to Intelligrated’s portfo-lio, don’t be surprised if there are acquisi-tions in the future.

With 10 years behind him, where does Cole want to see Intelligrated 10 years from now? “What I want to see 10 years from now is what I want to see now, which is to be a trusted partner for our customers,” he said. “We want to give them the best materials handling system to drive their bot-tom lines.”

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NACCO seeks to spin off materials handling businessHYSTER-YALE MATERIALS HANDLINGannounced that it has fi led a registra-tion statement with the U.S. Securities and Exchange Commission relating to a proposed spin-off by NACCO Indus-tries of its materials handling business to NACCO stockholders. Hyster-Yale Materials Handling, as an independent public company, will own and oper-ate the NACCO Materials Handling Group (NMHG) subsidiary of NACCO Industries.

“Hyster-Yale Materials Handling is a strong, established company, with leading brand names and an experi-enced management team. As a result of the spinoff, Hyster-Yale Materials Handling will have greater fl exibility to pursue strategic growth opportunities such as acquisitions and joint ventures in the materials handling industry,”

said Al Rankin, chairman, president and CEO of NACCO Industries.

He added that the spinoff will reinforce management’s focus on serving each of Hyster-Yale Materi-als Handling’s market segments and customer application needs.

Following the spinoff, Rankin will become the chairman, president and CEO of the new company. Michael Brogan, current and continuing presi-dent and CEO of Hyster-Yale Materi-als Handling’s operating company, NACCO Materials Handling Group, will also be an offi cer. It is expected that the spin-off will be completed during the third quarter of 2012.

In Modern’s annual lift truck rank-ing, NACCO Industries reported $1.8 billion and was ranked No. 4 on last year’s list.

12 J u n e 2 0 1 2 / Modern Materials Handling mmh.com

The concept of leasing lift trucks once meant adher-ence to a rigid contract that could result in steep penalties at the end of a term. Payments might have

been consistent through that term, but they’d remain consistent despite low utilization. Tina Goodwin, director of financial services for NACCO Material Handling Group, says leasing is no longer a restrictive premise.

“Customer demand has forced finance partners to be-come much more flexible,” says Goodwin, who adds the numbers tell the tale. “I’ve seen it flip from one side to the other. I’d say 80% of our customers lease equipment, as opposed to the 30% to 40% just 15 years ago.”

Fifteen years ago, big companies bought equipment outright, kept it too long and ended up with very high maintenance costs, says Goodwin. Customers figured since they owned the equipment they would get as much use out of it as possible and run it into the ground. Now, fleet management techniques have established economic life cycles and have enabled customers to do much more efficient replacement planning. Of NACCO’s national accounts with fleets of 50 or more, nearly 95% lease, says Goodwin.

“Customers can now spend as little as possible for the best possible value,” says Goodwin. “If you want to keep your costs as low as possible, consider leasing.”

Rule one, according to Goodwin, is to never underesti-mate or overestimate the hours of use over the course of a lease term. Underestimation may reduce the payment in the short term, but the customer could see massive overage costs at the end of the term. Underestimation can also add up, says Goodwin. For instance, a lift truck that sees only 2,000 of its 2,500-hour annual allotment will cost the customer a full 2,000 hours of unused time. Goodwin says as many as 80% to 90% of lift trucks have unused time when returned at the end of the lease term.

The first step to accurate planning is data collection, and customers should dial in their usage figures to within a couple percent margin of actual before signing a lease. But if business picks up or slows down in the months and years to come, a customer can always contact their

finance partner to adjust lease payments or lease term on the fly, says Goodwin.

“A customer should never be afraid to call us and no-tify us of any change,” she says.

Many finance partners now offer the option to bill by the hours of use, and might contract for 12,000 hours that could take anywhere from 40 to 70 months to accrue. In one variation of the hourly lease model, an 80% minimum usage charge is reconciled annually, meaning a customer with a lift truck that goes unused in any given month will pay zero dollars for that month. Though heavily depen-dent on robust fleet data measurement, the hourly lease model allows customers to more accurately tie revenues to expenses.

After all, says Goodwin: “Fleet and finance go hand in hand.”

Leases give lift truck customers more leewayTraditionally viewed as restrictive, new finance practices tailor leases to customer needs.

lift truck TIPS

By Josh Bond, Editor at Large

Josh Bond is an editor at large for Modern and can be reached at [email protected].

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You might call Rehrig Pacific Logistics’ director of innova-

tion and operations, Todd Rodewald, a modern day Rumpelstiltskin. But instead of turning straw into gold, he’s spearheading his company’s efforts to help retailers and manufacturers uncover the value hidden in their trash.

Rehrig Pacific Logistics (RPL) offers asset manage-ment and reverse logistics with a specific emphasis on packaging (pallets, cor-rugated boxes, reusable plastic containers and shrink wrap). The company has two facilities to recycle wood and industrial plastic waste.

“This is an evolution of a full circle service,” says Rodewald. “In addition to tracking assets, customers work with us to manage their waste. We turn their waste streams into a value-add.”

RPL’s Pennsylvania micro-mill takes 100% post-con-sumer pallet wood waste, grinds it, mixes it with formal-dehyde-free binding resin, and subjects the blend to heat and pressure. “Typically, pallet wood waste is converted into low-value fuel or mulch,” explains Rodewald. “This process yields a usable building material similar to par-ticle board.”

Both boards and manufacturing process are in the process of gaining Forest Stewardship Council certifica-tion and California Air Resources Board (CARB) II com-pliance. The sustainable boards can be used for green construction or manufacture of laminated furniture. Or, in the ideal closed-loop system, “boards made from wood waste generated in a retailer’s supply chain could be re-

directed back for the manufacture of furniture marketed in their stores, as shelving in their warehouses or as display fixtures,” he adds.

Similarly, in Rancho Cucamonga, Calif., an RPL facil-ity provides closed-loop recycling by processing post-industrial, high-density polyethylene (HDPE) plastic and converting it into regrind material that can be reused in plastics manufacturing processes.

“Before the recession, there was an increasing empha-sis on sustainability. Now, companies are looking at it as another way to reduce operating costs—and waste is a large expense,” he says. “We help identify items of value in a waste stream, or find ways to further maximize that value. And it’s good for the environment, too.”

Turn trash into treasureReverse logistics service converts used packaging waste into a valuable asset.

packaging corner

By sara Pearson specter, editor at Large

Sara Pearson Specter is an editor at large with Modern and can be reached at [email protected].


modern system report

By Bob trebilcock, Executive Editor

tognum america’s service parts dC in Brownstown, Mich., services the company’s diesel engine needs worldwide with a new order fulfillment solution.

Around the world in one to three days

How do we turn out a consis-tent product day in and day out? That’s a question chal-lenging companies around the globe.

It’s hard enough to be consistent from one production or order fulfillment run to the next within a plant or distribution center. It’s even more of an issue for companies operat-ing multiple facilities. The hurdles rise exponentially when those facilities are located in different geographic areas around the globe.

Tognum America, a manufacturer of off-highway diesel and gas engines and power generation systems, answered that question with a new parts and logistics center in Brownstown, Mich. Formerly known as MTU Detroit Diesel, Tognum America is a subsidiary of Tognum AG, the corporate entity behind MTU engines, MTU Onsite Energy generator sets and L’Orange fuel-injection systems.

The new 350,000-square-foot ser-vice parts distribution center was designed together with a consultant (i+o Industry Planning + Organization, www.io-consultants.com) to deliver

spare parts to customers of MTU die-sel engines in North America and around the world within one to three days. More importantly, the order ful-fillment engine is a mirror of the sys-tem Tognum AG implemented in Überlingen, Germany, about four years ago and which will be rolled out in another logistics center in Asia in the near future.

“Our global parts logistics strategy is to have the same systems and processes worldwide,” says Adam Wood, direc-tor of logistics for Tognum America. “While we tailor our processes a little to a region, we want a system that looks and feels the same to a customer no matter where they are located.”

By the same token, the order fulfill-ment system is designed to deliver the exact same product in the same man-ner, regardless of whether that order is filled in Michigan, in Germany or in

the tognum team (left to right): ervil smith, ed irvine, adam Wood,

Kim rowe and Mike Monahan.


Around the world in one to three days

Asia. “There will always be some dif-ferences as far as legal requirements and country of origin are concerned,” says Wood. “But the part out of the box should be in the same condition regard-less of where we fill the order.”

To achieve that level of consis-tency, Tognum used the same system and design consultancy firm on the German and North American proj-ects. It also installed the same auto-mation equipment and software from the same vendors, including the same mini-load automated storage and retrieval (AS/RS) and warehouse man-agement (WMS) systems. Together, they are the primary engines behind order fulfillment.

The facility is managing 40,000 stock keeping units (SKUs) with the ability to manage 80,000 SKUs. Located near the outbound docks, the AS/RS holds 22,500 storage trays and uses an ultra-quiet conveyor system to deliver trays to five ergonomic goods-to-person workstations with light-directed picking operations. Using a goods-to-person configuration reduces the amount of time associates spend walking and reduces the amount of conveyor in the facility. Live since October 2011, the system is handling 360 picks per hour during normal operations.

“This configuration gave us the most flexibility and enabled us to fit our main order fulfillment operations in about 25,000 square feet, including the conveyor and staging areas,” says Kim Rowe, senior manager of after sales logistics.

A history rooted in power Tognum America has a heritage and history that stretches back more than 100 years. Founders Karl and Wilhelm Maybach formed Maybach Engines in Germany in 1909 to power the first



“While we tailor our processes a little to a region, we want a system that looks and feels the same to a customer no matter where they are located.”

— Adam Wood, director of logistics for Tognum America

Using automated storage and retrieval and WMs technologies, tognum is handling 360 picks per hour, with room to grow.


Zeppelin airships. Over the years, they expanded into Maybach engines for automobiles, diesel-electric locomo-tives and other off-highway engineers.

In the 1960s, the company merged with Daimler-Benz to form MTU, which stood for Motor and Turbine Union. In 1994, MTU formed a partnership with Detroit Diesel to develop two series of engine families. A little more than a decade later, Tognum GmbH was launched in Friedrichshafen, Germany, as the parent company of MTU and MTU Detroit Diesel. U.S. operations were renamed Tognum America in 2011 and include eight locations in the U.S., including two manufacturing facilities, located across the country.

The Brownstown facility manages service parts for the MTU family of die-sel engines in North and Latin America and supports legacy Detroit Diesel two-cycle engines parts worldwide. “We are supporting Detroit Diesel engines that were manufactured as early as the 1940s and MTU engines that are even older than that,” says Wood.

The global parts logistics initiative was launched about four years ago, when Tognum began to investigate an order fulfillment solution that could be rolled out wherever Tognum did busi-ness. A number of different solutions were explored. “We looked at every-thing from miles of conveyors to multi-level pick mezzanines driven by pick-to-voice and pick-to-light technologies,” says Rowe.

The goal, adds Wood, was a facil-ity that could fill a customer’s order from anywhere in the world, regard-less of where the customer is located. If Germany was out of a part, then it could just as easily get shipped from Michigan or Asia if it was in stock there. As importantly, the part should arrive looking the same to the customer, regardless of which facility shipped it. “To do that, we have to have the same packaging and the same process so it has the same look and feel, regardless of where the product was stocked,” Wood says.

Tognum also decided it needed com-mon equipment at all three facilities. Otherwise, there would be inherent differences in orders filled by manual processes compared to highly auto-mated processes. According to Wood, the only real difference between the first two facilities to go live with the system is the layout of the shop floor. “Germany built a greenfield facility and we had to adapt the design to a brown-field facility,” Wood explains. “Some of our manual materials handling systems are different.”

In choosing between technolo-gies, a conventional light- or voice-directed piece picking mezzanine with a conveyor and sortation system was rejected. “One of our concerns was that a system with a lot of conveyor would obstruct the flow of material to other areas of the facility,” Rowe explains. “We aren’t always picking to an outbound shipment. Sometimes, we are picking for the kitting area and then those kits will go back into stor-age. This system allows the materi-als handlers to easily go wherever the system tells them to go without the obstruction of a conveyor system.”

As a service parts business, most

orders consist of a few parts picked by the piece. The mini-load AS/RS was designed to handle about 85% of the picks from the facility. Parts are stored in specially designed configurable trays that can have up to 32 compartments each and hold up to about 550 pounds.

The AS/RS is located close to the outbound docks. Associates manning the five workstations pick into a cus-tom designed shopping cart. When the order is complete, the cart is pushed to an outbound staging lane. They are then delivered to a packing area about 200 feet away. In addition to order ful-fillment, the facility does a lot of kit-ting, such as kits for an engine over-haul or for a turbo replacement. Those parts, which may come from multiple suppliers, are packaged together. Then, depending on their size and weight, are stored in the AS/RS or on shelving in a reserve storage area.

One unique aspect of the design is that the goods-to-person philosophy was extended to picking in a storage area for medium-sized parts that won’t fit in the AS/RS. Instead of picking from a pallet rack to a pallet jack, a tur-ret truck retrieves a pallet from storage and delivers it to a picking station at the

tognum’s new service center replicates a distribution center in germany. a third, similar facility will soon be built in asia.


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front of the area. Once an associate completes a pick, the pallet is returned to storage.

Lean thinking The design of the system was also driven by lean manufacturing principles. For that reason, the facility is very visual. “Everything has an identifiable location right down to the brooms, garbage cans and printers,” says Wood. “If something is out of place, we can address it immediately.”

Visibility also led to

the implementation of Extended Warehouse Management (EWM), the new warehouse management system from SAP, on a global basis. The WMS controls all of the warehouse functions, including putaway operations and pick-ing operations at the goods-to-person workstations. The warehouse control system is only responsible for storing and retrieving trays in the AS/RS.

Having one common WMS pro-vides a new level of visibility into the Brownstown operations. “We used to use a third-party logistics provider in Ohio for distribution,” says Wood. “We weren’t integrated into their system, so we had little visibility into their pro-cesses or the people that were control-ling that facility.”

However, having a common WMS has also provided visibility into opera-tions on a global basis. All three facili-ties are able to benchmark their per-

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formance against a common set of key performance indicators. If one facility is outperforming or underperforming the other two, it is readily apparent. Similarly, if one facility makes a minor change in the WMS that improves operations, that system improvement is available to all three centers. “The WMS is a big part of our global quality improvement program,” says Wood.

The facility exceeded expectations from day one. While the company had expected to spend up to two years get-ting the new warehouse and equipment up and running, it was all installed in nine months.

Meanwhile, Tognum America set aside 12 weeks to move 17 million indi-vidual pieces into the new warehouse, starting with the slow-moving parts first and including a two-week shutdown to move the 26,000 fastest-moving parts. The work was finished in 10 weeks.

Tognum knew the original plan would need to be accelerated when the first shipment that arrived in Brownstown con-tained a slow-moving part that hadn’t sold in 10 years but sud-denly had an urgent order for it. “We hadn’t planned to launch shipping that day, but printed out a shipping label online and hand-carried the order to the carrier,” says Wood.

Adds Rowe, “Our original goal was to hit 2,000 line items a day, and we did that within the first 4.5 weeks on a sustainable basis. Now, we’re watching our costs go down.”

the mini-load as/rs holds 22,500 storage trays and manages about 40,000 sKUs.

22 J U L Y 2 0 1 2 / MODERN MATERIALS HANDLING mmh.com

Receiving: Most inbound product is shipped from over-seas in shipping containers. Prior to shipment, Tognum America receives an advanced ship notification (ASN) from the freight forwarder that aggregates the shipments. Domestic suppliers provide a notification through electronic data interchange (EDI). Regularly scheduled deliveries by specific trucks are created in the warehouse management system (WMS). As soon as Tognum receives a bill of lad-ing and packing slips for a load, that delivery is assigned to one of the trucks scheduled in the system. That allows them to post the delivery as soon as it is unloaded from the truck in the receiving area (1). Once the load is counted and inspected in the staging area (2), the receipt is confirmed and the product can be prepared for putaway.

Preparation for storage: Prior to putaway, inventory is prepared for storage. A significant amount of material is removed from its transport packaging and repacked in a pre-packing area (3) according to how it will be handled in the future. For instance, an item that is sold as an individual part will be packed in its final packaging before putaway. Other products may be kitted with companion items before they go into storage. Small parts are stored on carts that can be rolled to an induction point for the AS/RS. Larger parts are palletized. Once all the parts have been counted, accepted and are ready for storage, an associate places a green cone on the material. That is a visual cue that the product is ready for storage.

Putaway/replenishment: Once a cone is on product that is ready for putaway, an associate will scan a bar code on a pallet or cart. The system will then direct the materials handler to a storage location. As much inventory as possible will be directed to the automated storage and retrieval sys-tem (AS/RS) (4). At the induction station, an associate scans

MODERN system report

Bringing goods to the personTognum’s mini-load automated storage and retrieval and warehouse management systems are the primary engines behind order fulfillment in the Brownstown DC.

By Bob Trebilcock, Executive Editor

Tognum America Brownstown, Mich. SIZE: 350,000 square feet

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a bar code label on a cart holding multi-ple parts. The scan releases all the nec-essary trays from storage to the station. When the tray arrives in the station, an operator scans the parts and a light system identifies the slot on the tray for that part. Once all the parts have been loaded, the operator releases the tray. It travels through an automated weight and height check station. This verifies that the weight and ensures that no parts are hanging over the tray that may get caught in the automated system. The tray is automatically putaway into the correct storage location.

The rest of the material will go into one of several reserve storage areas. Large parts are stored in racks in a large parts

area (5) or on the floor in a bulk storage area (6). Medium size parts are stored in racks in a spe-cial area (7). A lift truck operator is directed by the WMS to a putaway loca-tion in the right reserve storage area. The opera-tor scans the location bar code on the rack to con-firm the putaway.

Picking: Nearly 85% of orders are picked at one of five goods-to-person picking stations located at the AS/RS (8). When an order selector logs on to their station, they choose an order that is available to pick. The AS/RS then begins to deliver trays for that order to their workstation. A pick-to-light system identifies the part to be picked from the tray. The order selector confirms the pick by scanning a bar code label on the part and then places it in a cart. Once the order is complete, the order selector scans the cart, which is then delivered to an outbound staging and packing area

(9) where it is married to any other parts for that order. Parts may also be picked and sent to a kitting area (12). Examples may include all of the parts for an engine overhaul. Once kitting is complete, it is returned to a storage location according to its size.

Packing and shipping: Tognum uses a series of colored lights as visual cues in the packing area (9). Each packer has a monitor that displays the available orders for that station. A yel-low light indicates that some of the items for an order are available for packing. A green light that all of the items are available for that order. Once the packer decides to begin packing an order, parts belonging to that order are pulled from the staging area. Items are packed in a shipping carton and placed on a pallet or cart. Once the order is complete, a materials handler delivers it to the appropriate outbound staging lane (10) based on planned mode of transportation. There, a shipping coordi-nator verifies that the right items and the right quantity have been prepared for shipment, and the required paperwork/labeling has been attached. Once the quality check is complete, the order is loaded onto an outbound truck or a ship-

ping container at the shipping docks (11). Once the truck or container is

fully loaded, the order is closed and the inventory is removed in

the WMS. M

System suppliersConsultant: i+o Industry Planning + organization,

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as/Rs and ConveyoR: tGW systems, tgw-group.com

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mmh.com ModeRn MateRIals HandlInG / J u n e 2 0 1 2 23


By Bob Trebilcock, Editor at Large

Modern’s annual look at the supply chain software market revealed that the industry grew significantly in 2011.

Top 20 supply chain management software suppliers

If the supply chain management soft-ware industry was a mutual fund, it would have been a growth fund in 2011. And, if revenues reflected stock prices, it would have been a good investment.

The worldwide market for supply chain management (SCM) software applications, maintenance and services came in at $7.74 billion in 2011, includ-ing applications for procurement soft-ware. Without procurement, the market was nearly $5.2 billion, according to Chad Eschinger, vice president for sup-ply chain with Gartner (www.gartner.com). That’s an impressive 12.1% jump over 2010 revenues for the group of applications excluding procurement that are most relevant to Modern’s readers. “The industry built off of 2010’s momen-

tum,” Eschinger says. Looking forward, Gartner is predict-

ing a compound annual growth rate (CAGR) for SCM software excluding procurement of 8.7%. At that rate, the market will double in less than 10 years.

The top five market leaders will look familiar to readers of last year’s sur-vey. SAP ($1.018 billion) and Oracle ($935.6 million) continue as the Hertz and Avis of the industry.

Those companies were followed by JDA Software ($368.5 million), Manhattan Associates ($141.5 million) and RedPrairie ($99.7 million), accord-ing to Gartner’s analysis.

The most impressive move was that of Epicor, which jumped from No. 12 ($57 million) in 2010 to No. 6 ($92.9

million) thanks to the purchase of Activant. That was also the most note-worthy acquisition of the year.

One other important note on the numbers: The Big Three of SAP, Oracle and JDA accounted for 44.7% of the total supply chain management soft-ware market. Together, they picked up an additional 2% of market share from the prior year.

While it was a slow year for SCM news, the most impactful event was the continued roll out of EWM from SAP, a warehouse management system that includes automation control.

Making the listModern began tracking this space back in 2001, following the Internet boom.

ANOTHER GOOD BOUNCE:

MODERN special report


Although we initially focused on the top providers of warehouse management system (WMS) solutions, the lines between supply chain execution (SCE) and supply chain planning providers are no longer clearly drawn—enterprise resource planning (ERP) providers sup-ply WMS and supply chain execution providers supply planning and optimi-zation solutions.

For that reason, Modern now partners with Gartner to create the list. It is a numbers game and not a value judgment. The rankings are based on Gartner’s esti-mates of a provider’s annual sales for 2011. Gartner’s estimates are based on revenues related to supply chain man-agement software excluding vendor-gen-erated services and hardware and not a company’s total revenues.

Admittedly, this is an imperfect science. Gartner, for instance, strips out hardware sales from its estimates. Those are the reasons, for example, that Gartner credits Manhattan Associates with $141.5 million when the compa-ny’s overall revenues are more than dou-ble that amount. What’s more, Gartner does not follow the warehouse control (WCS) or manufacturing execution (MES) spaces for the purposes of their chart. However, it is an apples to apples comparison. More importantly, whether you agree with all of the numbers, the

order provides a good ranking of the major providers across the supply chain management space.

Modern’s one addition to the chart is Retalix, a provider not covered by Gartner, but which is relevant to our readers in the retail supply chain. That’s the reason our Top 20 has 21 vendors.

Notable trends Several trends were at work last year in each of the four categories relevant to our readers: ERP and supply chain planning (SCP), WMS, transportation management (TMS) and MES systems.

ERP/SCP: Last year’s growth may have been a continuation of 2010’s momentum. But interest in supply chain management was also sparked by economic volatility. “The floods in Asia and the earthquakes put a spotlight on the complexity in today’s networks,”

says Eschinger. SCM tools enable com-panies to deal with supply chain com-plexities, volatility and disruptions.

Several trends were also at work, including:

• The customer is king: Improving productivity and cost reduction have historically been the leading reasons why companies invest in supply chain software. Last year, meeting customer service demands rose to the top of the list. “Companies are looking for improvements in demand planning, supply chain visibility and the orches-tration of their supply chain activities,” says Eschinger. “They’re asking how they can do a better job of meeting cus-tomer expectations.”

• The supply chain as an engine of growth: The supply chain is increasingly looked at as a market differentiator and as an engine for business growth at forward looking companies. That was the second reason for investing in SCM tools.

• Innovation: Think of it as the Apple effect. Increasingly, companies are looking to innovation to separate them from the pack in the market. SCM is seen as a tool to enable innovation.

• Cloud computing and mobile devices continue to get traction: The market for subscription-based sup-ply chain services is growing at about 20% a year, says Eschinger. He adds

Top 6 SCM drivers With a focus on the supply chain, here are the key drivers behind those projects going forward. 1. Improve customer service2. Target supply chain contributions

to drive business growth3. Innovation4. Improve efficiency or

productivity5. Reduce costs6. Improve business processesSource: Chad Eschinger, Gartner


that the most aggressive companies are implementing 40% to 45% of their supply chain software on premise and outsourcing the rest. A company may have a core product like advanced planning and scheduling from SAP on premises but add a specialized cloud-based sales and operation planning tool for integrated business planning activi-ties. “Going forward, we think about 70% of those specialized applications will be in the cloud,” Eschinger says.

Similarly, there has been a steady adop-tion of mobile technologies, especially for field personnel. “The cloud, mobil-ity and even social networking are forc-ing businesses to rethink some of their processes,” Eschinger says.

WMS: Like supply chain planning, the market for warehouse management software grew about 15%, and once again topped $1 billion, according to Gartner.

While there were no significant mergers or acquisitions in 2011,

Gartner’s Dwight Klappich, vice presi-dent of research, noted some signifi-cant market drivers.

One is that core WMS, which man-ages the basic processes of a ware-house, is a mature technology. “We’re approaching parity across WMS suppli-ers,” Klappich says. “That doesn’t mean that all WMS providers are the same. Like buying a car, there are differences in quality. But, also like a car, any WMS should cover the basics.”

Instead, the most important differ-ences are the applications that extend the value of the core product, such as labor, yard management and perfor-mance management. “To a large extent, the market is being driven by upgrades and replacements because the 10-year-old WMS that was installed to pick cases can’t handle piece picking,” says Klappich. “And in nine out of 10 replacement deals, it’s those add-on

Top 20* supply chain management software suppliersNo. Supplier 2011 Revenue URL SCP WMS MES/MRP TMS

1 SAP $1.018 billion www.sap.com x x x x

2 Oracle $935.6 million www.oracle.com x x x x

3 JDA Software $368.5 million www.jda.com x x

4 Manhattan Associates $141.5 million www.manh.com x x x

5 RedPrairie $99.7 million www.redprairie.com x x x

6 Epicor $92.9 million www.epicor.com x x x

7 Descartes Systems Group $87.7 million www.descartes.com x

8 Servigistics $64 million www.servigistics.com x x x

9 Kewill Systems $63.7 million www.kewill.com x

10 IBS $58 million www.ibsus.com x x x x

11 Totvs $57.8 million www.totvs.com x x x

12 Logility $52.3 million www.logility.com x x x

13 Lawson Software $51 million www.lawson.com x x x x

14 Retalix $50.9 million www.retalix.com x x x

15 IBM $50.8 million www.ibm.com x

16 Infor $50.5 million www.infor.com x x x x

17 GTNexus $46.2 million www.gtnexus.com x x

18 HighJump Software $45.8 million www.highjumpsoftware.com x x

19 Quintiq $39.5 million www.quintiq.com x x x

20 Accellos $35 million www.accellos.com x x

21 Kinaxis $34.6 million www.kinaxis.com x x

* Source: Revenue estimates provided by Gartner (www.gartner.com) with the exception of Retalix, which was provided by the company.


Top 5 SCE software suppliers (by Revenue – 2011)

Suppliers 2011 Revenue Share (%) of market 2011

Oracle $ 405 million 17.4%

SAP $ 231 million 10%

Manhattan Associates $ 133 million 5.7%

RedPrairie $ 100 million 4.3%

Descartes $ 88 million 3.8%Source: Chad Eschinger, Gartner


components that are driving the deal.” Considerable growth is also coming

out of emerging economies like Latin America. In those areas, the focus is still on core WMS. “A retailer in Mexico City may not care about labor management because labor is cheap,” says Klappich. “But they can’t afford to ship the wrong product or send an order that is short three items.”

TMS: Once again, the market for transportation management software clocked in at just under $1 billion. The market grew at a 15% rate, driven by tight capacity and high fuel costs. “We’re back to 2007 and 2008 levels,” Klappich says.

While major shippers have been using TMS applications for years, growth is now coming from mid-size shippers spending $25 million to $100 million a year on freight. “Maybe 10% to 15% of those companies have a TMS, so there’s a lot of growth poten-tial,” says Klappich. Those companies are typically implementing transporta-tion sourcing and benchmarking mod-ules rather than optimization engines. “A company running five loads a day doesn’t need optimization,” Klappich says. “But they do want a platform to manage their freight.”

Meanwhile, more sophisticated companies are looking at supply chain execution convergence—technologies such as the supply chain execution plat-forms from Manhattan and RedPrairie that can integrate data from a TMS into a WMS to synchronize an end-to-end process.

MES: The market for manufac-turing execution software solutions, or MES, for discrete manufacturers reached an estimated $1.5 billion for licensing and revenues in 2011, accord-ing to Simon Jacobson, a vice president who covers the MES space for Gartner.

While the benefits of WMS and TMS are now widely accepted in the board room, Jacobson says it is still a challenge to sell the benefits of an MES systems to a C-level executive who thinks the bases are covered by


their ERP system. That has inhibited the growth of the space. “The benefits from MES are clear,” says Jacobson. “There are also real efficiencies to be gained by standardizing on an MES platform on a global scale. But there’s still a need to educate executives to

understand that MES can add value to an ERP system.”

Looking forward, Jacobson expects to see a wave of consolidation in the industry as large MES players buy up point solution providers to add func-tionality to their offerings. �

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By Lorie King Rogers, Associate Editor

From manual devices to robotic arms, there’s more than one way to build a pallet. Here’s a look at how palletizing equipment improved productivity at these five operations.

Palletizers: Putting product in its place

B

MODERN equipment report

uilding a pallet, especially a mixed SKU, or rainbow pallet, can be a challenge, but it’s a vital link in the supply chain.

While the palletizing needs of a manufac-turer with limited SKUs may differ from a DC with hundreds, both can see the bottom line impacted by the palletizing process. “In all cases, companies today are working from a continuous improvement perspective,” explains Tom Eagan, vice president of indus-try relations for the Packaging Machinery Manufacturers Institute (PMMI).

Here’s a look at how five companies took proactive steps to solve their palletizing prob-lems and how those solutions have contrib-uted to successful process improvements.


Pallet positioners reduce strain, increase controlHVAC industry leader, Belimo invests in pallet positioners to safeguard workers from fatigue and injury.

belimo customization in danbury, Conn., designs and manufactures damper actuators and control valves for HVAC systems. While Belimo is focused on creating comfort, safety and efficiency in buildings, they are also keen to those same needs for their employees.

To lend employees a helping hand as they transfer boxes from conveyor belts to pallets, Belimo purchased nine pal-let positioners (Southworth Products, southworthproducts.com) that are ergo-nomically designed to virtually elimi-nate the bending, reaching and stretch-ing that can lead to fatigue and injuries.

Six of the pallet positioners at

Belimo are traditional spring models that maintain the top layer of a pallet load at a convenient height and can be modified by changing the springs in its scissor lift to run lighter or heavier loads. But on three of the conveyor lines, the boxes vary greatly in dimen-sion and weight every day, so Belimo installed three powered hydraulic pal-let positioners, each with a 2-ton load capacity.

With this model, the operators can work at a comfortable height by pre-cisely adjusting the positioner with a foot pedal, which adds or releases compressed air from an airbag under

the platform. And because electrical cables and shop air lines run beneath the concrete floor and come up only where needed, tripping hazards are eliminated.

The pallet can also be rotated on the positioner’s turntable, allowing the operator to work on the nearside of the load rather than walking around it.

“Because our products have many different configurations, the cartons aren’t always similar weights, says Lenny Casacalenda, Belimo’s plant logistics manager. “So the pneumatic model gives employees the power to make sure the pal-let is always in the best spot for them.”


modern equipment report

when producers rice mill was formed in 1943, it milled 143,500 barrels its first year and had assets of $125,000. Today, its annual milling rate is more than 60 million bushels and sales have topped the $500 million mark.

One of the plants contributing to the companies success is the packaging parboil rice division plant in Stuttgart, Ark., which packages raw rice into a commercial grade, consumable prod-uct to be distributed throughout the United States. Unfortunately, its hand stack line and old palletizing equip-ment were contributing to high labor

Palletizer offers flexible patterns and eliminates hand stackingHigh-infeed palletizers at Producers Rice Mill increase production and uptime while reducing expenses.

Palletizing system increases throughput, cuts labor costs

graphic packaging international (GPI) is a leading provider of paperboard packaging solutions, including folding cartons and specialty bag packaging. Headquartered in Marietta, Ga., GPI serves customers in 10 countries with manufacturing in 22 cities and consumer packaging facilities in 43 locations.

A recent expansion and a labor-inten-sive process at GPI’s Fort Smith, Ark., facility resulted in decreased produc-tion and increased ergonomic issues. Five lines were being manually pallet-ized, which was physically challenging for workers who were falling short of throughput requirements.

So, GPI looked for a solution to optimize the workforce and relocate people from manual palletizing to other skilled positions. After working with a supplier (Bastian Solutions, bastianso-lutions.com) that analyzed the manual process, GPI installed a complete pal-letizing solution from in-feed conveyor to stretchwrappers. The final system includes low pressure in-feed con-

veyor, 90-degree rotation conveyors, row-forming conveyors, pallet conveyor, layer building table, shuttle car sys-tem, palletizers, a gantry system with a specially designed end-of-arm tooling, stretchwrapper and control system.

This approach provided the mechan-ics to support product from the bottom, while offering the versatility of multiple palletizing patterns. The end design resulted in a traditional palletizing sys-tem handling eight cases per minute in 50 unique stacking patterns.

“This solution is user friendly and easily set up by the operators,” says Gregg Ruple, GPI project engineer. “Adjustments to each pattern are stored in the system so that those adjustments are automatically made the next time the pattern is selected and run.”

According to Ruple, “The palletizer sys-tem has allowed us to reduce manual pal-letizing by 50%, run more of our finishing equipment without adding any additional headcount and allowed workers to take on other positions in the facility.”

Graphic Packaging International installs a complete palletizing solution to meet throughput goals and reassign workers to more skilled positions.

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(vonGal, vongal.com). The new pal-letizers eliminate the hand stacking line as they stack the cases before dis-charging them on a pallet.

By installing a new conveyor and two new palletizing machines, Producers Rice was able to increase productivity from 8,000 cases per day over a 12-hour production shift to 13,000 cases over an eight-hour shift and decrease its workforce by two people over a two-shift period.

Jeremy Herring, parboil packaging manager at the Stuttgart facility says, “I was very impressed with the easy instal-lation and start-up of these machines. We installed the system over the week-end and both lines were running full production by mid-week with no issues.”

Also impressed with the palletizers’ flexibility, Herring says the pattern editing software allows them to make changes to patterns and machine functions on the fly, which cuts down on machine down-time. As a result, Herring reports, “We’re at a steady 99% uptime to date.”


costs and limited throughput. So, Producers Rice implemented a

new system that conveys two finished products out of the packaging room up to an elevated height to new palletiz-

ing machines. Previously each line dis-charged on to a common hand stack-ing line. Now, each product moves on a conveyor and is then automati-cally fed to two high-infeed palletizers

Producers Rice’s new palletizing machines increased productivity from 8,000 cases per day over a 12-hour production shift to 13,000 cases over an eight-hour shift while decreasing labor costs.


from toll house cookies to sports nutrition to pet care, Nestlé is a leading global provider of food and wellness products and a household name. So it comes as no surprise that Nestlé’s high-volume DC stores and distributes hun-dreds of SKUs from its consumer food and beverage, food service and pet food businesses.

robotic layer picker increases safety, quality and productivityNestlé turns to an integrated robotic layer picking solution to transform workplace safety and significantly improved the productivity of mixed case palletizing.

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The high demand for Nestlé’s house-hold brands means that about 80% of its DC’s orders are distributed as full pallets. But picking the remaining 20%, which are distributed in pallet layer and full case quantities, involved the

manual handling of about five million cases per year. This created a signifi-cant, ongoing ergonomic challenge, not to mention a productivity challenge.

To address those challenges, Nestlé installed a layer picking solution

(Dematic, dematic.com) that elimi-nates the need to manually handle about four million cases. The robotic layer picking system achieves picking efficiency by removing layers from one pallet then creates the right case layer quantity for another order. By cross-matching orders and pairing those with compatible order profiles, the sys-tem enables about 20%, and in some instances up to 50%, of cases for orders to be distributed without each layer being physically picked.

Orders from Nestlé’s warehouse management system are downloaded to the warehouse control system to initiate picking. The system calls for the stock required for layer picking in the sequence required to fulfill the next wave of orders. Full pallets are retrieved from adjacent bays of reserve storage by RF-directed forklifts and loaded onto the induction conveyor. As pallets are fed into the layer picking cell, they are scanned and the control system directs the operator to remove the required amount of stretchwrap-ping from the pallet.

As new pallets of stock are fed into the system, the layer picker selects the required layers and transfers the stock to one of four customer order pallets. Any stock remaining on a pal-let either forms the basis for another order through the system software, or is returned to the reserve storage bays.

Orders that need additional case picks to be added to the layers exit the robotic cell. From there, operators add the cases needed to complete the order.

Since implementing the new sys-tems, Nestlé has created a safer work-place by reducing forklift operations and ergonomic risks associated with manu-ally pallitizing. In addition, the sys-tem’s pallet build quality has improved transport utilization and resulted in less product damage and fewer returns, all of which have reduced Nestlé’s distri-bution operating costs.

The robotic layer picking system’s pallet build quality has improved transport utilization and resulted in less product damage and fewer returns, all of which have reduced Nestlé’s distribution operating costs.

mmh.com ls Handling / J u l y 2 0 1 2 35

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articulated arm robotic palletizer picks up 220 pounds at one time

dunn-edwards is a leading manufac-turer and supplier of paints and sup-plies serving professionals and consum-ers throughout the southwest, and sells most of its paint through its own 109 store network.

In 2010, Dunn-Edwards consoli-dated all manufacturing and distribu-tion operations into a new, fully auto-mated facility in Phoenix, Ariz. An integral part of the automation portfolio is a high-performing robotic palletizing system that handles 5-gallon buckets of paint. In designing the system, the requirement was to palletize the buck-ets, 36 buckets to each pallet, at a rate up to 48 buckets per minute, building two pallets every 90 seconds.

While the equation seems daunting, throughput numbers are met using the new palletizing system that includes a single articulated arm robot (ABB, abb.com/robotics) and a vacuum gripper that can pick up four of the 55-pound

buckets at a time. Because the system is able to

achieve such high speeds, Dunn-Edwards is able to serve two incom-ing conveyors and build two pallets at a time. The robot sits between the two conveyors and picks buckets from the left conveyor and puts them on a left pallet or from the right conveyor for placement on the right. And, if needed, the buckets from line A can be placed on pallet B, or from B to A.

While the vacuum gripper is strong enough to pick up the buckets, it’s sensi-tive enough not to remove the tint plugs that are attached to the top of each pail.

But the biggest consideration was the cycle time, says Clay Fenstermaker, director of engineering at Dunn-Edwards. “We first considered an over-heard gantry robot system, but [our sup-plier] came up with a simulation that showed that the fixed-position robot could deliver the rate we needed.” M

In its new DC, Dunn-Edwards uses a specially designed robotic system to handle today’s palletizing needs and accommodate future company growth.

By Lorie King Rogers, Associate Editor

The food and beverage sector is ripe with unique and difficult materials handling challenges due in part to the growing number of product choices. Here’s a look at how technology can help keep the shelves stocked and the customer satisfied.

MODERN best practices

Keeping up with the SKUs


Food and beverage producers are trying to be all things to all people at all times. That’s because consumers are demanding an ever-increasing variety of food and bev-erage products that satisfy the taste for ethnic organic, gluten-free, sugar-free, low-fat, high-fiber, low-sodium and caffeine-free products.

And it’s not just more food choices. Products are now available in a wider array of package forms than ever before, including six packs and fridge packs, sin-gle-serve, family-size and club size.

The result is warehouses and retail stores bursting at the seams with profound SKU proliferation—cre-ating a demand for flexible materials and information handling solutions that allow manufacturers and dis-tributors to deal with all those SKUs as efficiently as possible. Here’s a look at best practices that food and beverage companies use to help handle the growing number of SKUs.

Convey with careNew packaging creates materials handling chal-lenges. Smaller, softer containers and less corrugate are making it more challenging to move product through the supply chain. Bottled water is a good example. “A water bottle is now more like a water bag,” says Brian Keiger, logistics account manager for KUKA Systems, “and that can have an effect on every

piece of automation along the way.”Conveyors are used to move these products

through a facility, but varying package types, sizes, shapes and weights mean that there’s no one right conveyor for all jobs.

“There are a number of types of conveyor technol-ogy available,” explains Tom Roberts, director of man-ufacturing systems regional sales and operations for Intelligrated. “But the variations that come into play make it difficult to make a universal statement.”

For example, Roberts says, roller conveyor could be the best form of conveyance if your products have a solid base and are long enough to be supported by at least three rollers at all times, like a case of dog food, for example. But if the packages are too small, rolling could cause marring of the primary package.

Nobody wants to pay top dollar for damaged goods, so one solution is to consider a belt conveyor. “The advantage,” says Roberts, “is that the plastic belt gives the complete support you need for small packages or packages with soft bottoms.”

Store slow movers Along with conveyance, you should consider velocity. A DC with thousands of SKUs, might store slower mov-ers in an automated storage and retrieval systems (AS/RS). Scalable and flexible, an AS/RS is a computer-

FOOD & BEVERAGE:

PH

OTO

GR

AP

HY

BY

NA

ME

Software and robotic palletizers work together to form store-ready mixed SKU pallets (top). Providing dense storage, a mini-load AS/RS uses automated moving vehicles to put away, store and retrieve goods, and bring them out in sequence to fill an order (middle). There are a number of ways to handle and convey product, but SKU variation and throughput requirements presents unique materials handling challenges for every operation (bottom).

controlled system that uses automated moving vehicles to put away, store and retrieve goods, and bring them out to the picker in sequence to fill an order.

It’s a good idea to assign the fast moving SKUs a fixed loca-tion and store the slow movers in a mini-load AS/RS or shuttle AS/RS that handles lighter micro-loads, recommends Sean O’Farrell, market development director for Dematic.

“Since the majority of warehouses and distribution cen-ters were established many years ago, the existing build-ings are being challenged by more SKUs. As more space is needed to accommodate more SKUs, automated storage systems can reduce the footprint required by a ratio of 8-to-1,” O’Farrell says.

You’ve got to slot Slotting software can calculate best use of storage space by finding the ideal location for SKUs. “Operations are shuf-fling or re-slotting their picking slots to face the challenges presented by more SKUs,” says O’Farrell. And, slotting soft-ware can provide an analysis to help you know your orders, simulate moves, and put fast moving SKUs in the ideal pick-ing slot.

In fact, before you actually change the location of an SKU, it’s a good idea to simulate the move. “The dynamic slotting of pallet and case locations puts a lot of stress on the [AS/RS] machines, so it needs to be simulated before its put into action,” says Bill Ostermeyer, vice president of sales for viastore. “A system with dedicated locations for all SKUs can be more simply, mathematically calculated, but dynamic real-location for picking makes simulation vital for its success.”

Slotting software can also determine the right size of the picking location and effectively manage the real estate inside the four walls. “In a perfect world, you’d have enough floor space, but even warehouses with a million square feet have issues with floor space,” says Tom Kozenski, vice presi-dent of product strategy for RedPrairie.

This situation forces the best practice, Kozenski says, which is to slot product in a very sophisticated manner, even multiple times during the day, which requires an automated system. There are countless reasons for an SKU’s velocity to change. Whatever the reason, SKU velocity can change overnight and so should SKU storage locations.


38 J U L Y 2 0 1 2 / Modern Materials Handling mmh.com

Inside a DC however, SKU prolif-eration and the retailers’ demand for store-ready orders makes palletizing more like solving Rubik’s cube. This is where software and robotic pallet-

As a bonus, in the evaluation pro-cess, you could uncover unexpected opportunities like being able to con-solidate a number of slow movers into a bigger tote and bringing many items to a picker in one tote. Not only does this save labor, it cuts down on wear and tear of the equipment.

Palletizing processPalletizing needs on the manufactur-ing side of the food and beverage sec-tor are different from the needs on the distribution side. On the manufactur-ing side, a single production line can be directly linked to a palletizer, repeatedly handling a single SKU.

modern best practices

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Established in 1910, Ocean Beauty Seafoods is one of the most suc-cessful seafood companies in the Pacific Northwest. During the height of fishing season, the company employs about 2,000 workers at its six Alaskan processing plants and ships millions of pounds of canned, frozen and fresh seafood to custom-ers including Chicken of the Sea and Bumble Bee Foods.

To meet global food quality stan-dards and traceability requirements, Ocean Beauty installed a software solution (SIMBA, simba.com) that uses bar code technology. But they needed more rugged, ergonomic handheld equipment to operate in the cold, wet processing environ-ment. Working with a systems inte-grator (Dynamic Systems, dynasys.com) that specializes in bar code technology, Ocean Seafood incorpo-rated 15 rugged handheld devices (Psion, psion.com) to interface with its software system.

Together, the technologies track the catch. After fish is processed, it’s placed in a carton with a bar code label that includes contents and product tracking information. When the carton is pulled from the freezer for shipment, an employee scans the bar code with the handheld device and product data is entered into the inventory system at the company’s Seattle headquarters. From there, they track it through distribution and delivery, ensuring accurate orders and delivery of fresh seafood.

“The new equipment enables us to handle a wider variety of products and ship directly to the customer, giving us better transportation rates,” explains Tom Marshall, superintendant for Ocean Beauty’s Excursion Inlet Alaska plant. “Without these two technolo-gies, it would be impossible to track such a high number of varied ship-ments from vessel to destination.”

Fishing for a handheld device to stand up in extreme conditions

mmh.com Modern Materials Handling / J U L Y 2 0 1 2 39

Companies mentioned in this articleCubiC designs: cubicdesigns.comdeMatiC: dematic.comintelligrated: intelligrated.comKuKa robotiCs: kuka.comredPrairie: redprairie.comviastore systeMs: viastore.com

izers work together. “Software tells the storage system what cases to send and in what sequence. Then it tells the palletizer, here’s what you’re get-ting and here’s how you have to put it together,” explains RedPrairie’s Kozenski.

Since robotic palletizers can handle virtually any product—whether it’s frag-ile, has a solid bottom or open top—and can adapt quickly to an operation’s changing needs and changing SKUs, they are ideal for palletizing in the food and beverage sector. “Not only can the robot’s end effector be changed to han-dle multiple package types,” explains Kuka’s Keiger, “you can add a robot to increase throughput, and a robot’s arm can work 24/7 without getting tired.”

With a number of end-or-arm tooling devices like grippers and vacuums, the ability to lift and rotate product, robotic palletizing solutions are designed to handle the latest big box directive called “labels out.” Keiger explains that certain retailers demand that all prod-uct in a pallet to be positioned with its front label facing out to form a type of mobile billboard.

Food-grade componentsThe Food and Drug Administration and USDA set extremely strict require-ments for food and beverage manufac-turers, and often times those require-ments can follow a product out into the packaging areas. These require-ments can determine the specific type or style of equipment used for a certain process—like sanitary designs for mezzanines that support picking operations.

“The simple rule of sanitary design in production equipment is to prevent catch points where bacteria, patho-gens, microbiological organisms or other debris could collect, grow and ultimately contaminate the food or beverage,” explains John Moore, vice president of marketing for Cubic Designs.

One way to meet sanitary regula-tions is to construct food-grade plat-forms with square tubing rather than

C-channel framing. The square shape is completely closed off which prevents contaminants from getting inside.

In today’s complex food and bever-age sector, regardless of the number of SKUs that come on the scene, the goal is to deliver high quality products to the consumer in a timely manner. M


modern productivity solution

By lorie King rogers, Associate Editor

MobilE coMputing EquipMEnt furnishEs rEAl-tiME dAtACity Furniture installs forklift-mounted computers to track inventory in real time and honor its promise of same-day, seven-day-a-week delivery to customers.

City Furniture is one of Florida’s fastest growing furniture retail-

ers. Headquartered in Tamarac, Fla., the company currently has 15 stores and nine Ashley Home Store showrooms that sell quality home furnishings in a fun environment.

But it wasn’t fun for the staff in its one-million-square-foot ware-house when the aging data collection hardware mounted to the fleet of lift trucks needed repairs. The trucks operate 23 out of 24 hours every day, and “users aren’t always gentle in a rugged industrial environment,” explains Ricky Maharaj, network administrator at City Furniture.

Unreliable equipment posed a risk of downtime in the warehouse. Since City Furniture promises its customers same-day delivery seven days a week, the company couldn’t take that risk. It uses a Web-based warehouse man-agement system (WMS) to maintain real-time inventory and keep the flow of merchandise moving smoothly. And, associates use the com-puters to access the system as they are directed to specific aisles to put away new inventory or pull it for delivery.

City Furniture’s evaluation team chose a new supplier (Glacier Computer, glaciercomputer.com), and since imple-menting the new units, they have seen a lot of improvement. Maharaj reports the new units have faster boot times and include built-in smart battery technology that allows the sys-

tem to operate while employees perform battery changes. “The improvements allow us to focus on other aspects

of the company, as well as increased warehouse productiv-ity with increased equipment uptime,” says Maharaj. “In our fast-paced, rugged environment we depend on equip-ment that is durable, can sustain rough usage and still main-tain great uptime. The new system has delivered for City Furniture.”


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A new line of industrial fans, including the Powerfoil®X2.0, Powerfoil 8, and Basic 6™, allow engineers to select the exact airfl ow solution their space requires. These fans incorporate numerous performance and durability upgrades to previous models and are backed by warranties ranging from 12 to 15 years.

The Powerfoil X2.0 and Powerfoil 8 introduce a unique new patented airfoil system — a system that combines patented airfoils and winglets with patent-pending AirFence™ technology to increase overall coverage by 28%. The winglet improves airfoil e� ectiveness by eliminating e� ciency-robbing turbulence at the tip, while the AirFence captures air that would otherwise slip o� the end of the airfoil.

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Cannon Equipment’s Sustainability Initiatives

As a manufacturer of material handling carts and automated machinery, we at Cannon Equipment take our responsibilities to the environment and the communities in which we operate very seriously. High standards of responsibility are, in our view, compatible with growth and business efficiency. Cannon Equipment, along with our parent company IMI, plc has identified four key priorities within our overall approach to Sustainability and Responsible Business.

• Continually improving our working practices to minimize health and safety risks. We encourage best practice throughout our business and monitor performance through our Corporate Health and Safety requirements and systems of guidance and auditing. • Understanding and meeting our customers’ Responsible Business (CSR) priorities. Our operations seek to understand the whole business environment experienced by our customers, including their social and ethical responsibilities and priorities.

• To manage the particular challenges relating to manufacturing facilities in low-cost countries. We ensure that all our facilities operate in accordance with our policies on health, safety, environment, employment practices (particularly child labor), pay, benefits, working conditions and improper gifts and payments.

• To maximize energy efficiency each of our facilities is required to set targets aimed at minimizing emissions that have global warming potential and reducing the as sociated costs.

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Dematic designs, builds, and life cycle supports logistics solutions that optimize material and information flow — from receiving to shipping, within the four walls of the factory, warehouse, or distribution center.

Dematic offers a consultative holistic engineering approach. This method drives the development of non-biased, data-driven logistics solutions that optimize the user’s supply chain. A typical Dematic solution is built around process improvements, material handling technology, and software. System configurations may be manually operated, mechanized or automated.

Our single source, vertically integrated capability reduces time, cost, and risk. This is accomplished by owning and controlling design services, real-time WMCS software, material flow technologies, along with best in class engineering, project management, and customer services.

Dematic is dedicated to improving logistics results. To that end, we guarantee successful system performance.

Visit www.dematic.us or call 1-877-725-7500 to learn how we can create logistics results for your organization.

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• Horizontal and vertical rack/bin location labels• Preprinted LPN Labels• Retro-reflective bulk location signage• 1D & 2D barcodes• Aisle and dock door signs• Tote labels• Beam RenewTM racking cover-up solutions• BullsEyeTM oval floor plates for bulk locations• Magnetic location labels• Data file manipulation• Facility layout & design consultation• National installation services for ambient, cold or freezer environments

mmh201207_IDlabel_corpPrfl.indd 1 6/21/2012 2:08:38 PM




Storage Solutions

MaterialHandling

Dock, Facility &Warehouse

Industrial &Office Furniture

ShippingSupplies

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GREAT PRODUCTS AT GREAT PRICES...THAT ALWAYS SHIP FOR FREE!

Company Contact Information…IndustrialSupplies.com8123 South 116th StreetPleasant Prairie, WI 53158Contact customer care at 1.877.659.1789 or [email protected] Hours: Monday – Friday; 7:00am – 7:00pm CST

The Products We Offer…IndustrialSupplies.com is your online destination for a wide variety of quality industrial supplies and equipmentfrom the brands you know and trust to help you manage your business and/or facility. Find great prices on…

What You See is What You Pay…We want to simplify purchase decisions and save time for our customers.We understand that shopping around for the right product(s) can be a time-consuming process - often needing to go through all or part of checkout process just to find out "how much will shipping cost".

You may also find a "great" price out there while shopping around at other web sites - and then find out the "great" price isn't what you end up paying after the shipping cost is added.

At IndustrialSupplies.com, Shipping is Always Free for continental United States customers. There are no hidden fees - what you see is what you pay.

Why Buy from IndustrialSupplies.com?• Shipping Always Free• See how easy shopping can be when what you see is what you pay• Talk with a live person before, during and after your purchase• Check out our wide selection of product offerings

Bins & ContainersBulk Containers

CabinetsFile & Record Storage

LockersPallet Racking,

Wire Decking & RackGuardsRacks

Safety Cabinets, Cans & Tanks

Shelving & AccessoriesTool Storage

CastersConveyors

DolliesDrums, Drum Handling

& AccessoriesDumpers & Hoppers

Hand TrucksHoists & Cranes

Lift TablesPallets & Pallet Jacks

Spill ContainmentStackers & Lift Trucks

Trucks & Carts

BollardsFans & Climate Control

Guard RailsJanitorial & Cleaning

EquipmentLadders, Stairways

& PlatformsEntrance &

Anti-Fatigue MatsPipe FittingsPoly Sheeting

Restroom SuppliesSafety & Protective GearSafety & Security Mirrors

Safety EquipmentStrip Doors

Trash Cans & Recycling Bins

BookcasesLiterature Racks

Cafeteria FurnitureComputer WorkstationsConference & Training

Room FurnitureMachine Tables

Office AccessoriesOffice Panel & Desk Systems

Packing StationsShop Desks

Stainless Steel Work Tables

Stools & ChairsTables

Workbenches & Accessories

Box StaplersBoxes & MailersBubble, Foam &

Paper CushioningMailroom Stations

Paper Shopping BagsPoly Bags &Heat Sealers

ScalesShipping Labels

& TagsStrapping

Stretch Wrap & Accessories

Tape, Tape Dispensers & Accessories

Bike RacksOutdoor Ashtrays

Outdoor MaintenanceOutdoor Security

BarriersOutdoor Sheds

& SheltersOutdoor Trash Cans

Parking Lot &Traffic SafetyPicnic Tables

& Benches




Keeping Your Business Moving.

That’s the Intelligrated Way.

Intelligrated® (www.intelligrated.com) is a leading North American-owned, single-point provider of automated material

handling solutions with operations in the U.S., Canada, Mexico and Brazil. Intelligrated has the largest network of regional

sales and support offices in the North American material handling industry. The company’s dedicated service engineering

and sales forces are passionate about working with leading companies to create innovative solutions and lasting relationships.

Solutions• Direct to Consumer

Distribution

• Retail Distribution

• Food & Beverage

• Wholesale Distribution

• E-Commerce Fulfillment

• Apparel

• Consumer Goods

• Converted Paper

• Pharmaceutical

• Third Party Logistics

• Postal Distribution

• Parcel Distribution

Technologies• Conveyor Systems

• IntelliSort® Sortation Systems

• Alvey® Palletizers

• Alvey Robotics

• Real Time Solutions® Order

Fulfillment

• InControlWare® Software

Solutions

• BOSS® Conveyor & Sortation

Controls

Customer Service• 24X7 Technical Support

• Customer Service Dashboard™

• OnTimeParts™

• Field Service

• Audits

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• Training

Professional Services• Solutions Development

• Systems Integration

• Operational Support

Services

866.936.7300www.intelligrated.com

Keeping our promises. Ensuring successful customers and lasting collaborations. Engineering for a better ROI. Solving customer challenges. That’s the Intelligrated Way.




866.632.2589 | www.interlakemecalux.com

SAN MAR increased its production turnover 400 percent in less than a year.

• 700,000 square foot area• Upright height of 38 feet• Z-beam end-bay bracing• 2-deep pallet depth in sections

EL MILAGRO opened production on a new product after increasing its weight capacity.

• Increased pallet capacity past 1,180• 50 flow rail lines• 2,200-pound maximum pallet level capacity• 25 bays

BENcO DENtAL increased productivity over 12 percent 18 months after opening a new facility.

• 160,000 sq. ft area• 4 levels of storage picking• Cohesion with retrofitted mezzanine• Unique chevron shelves installed above conveyors for added accessibility

Engineering Solutions

WarEhouSE rack SolutionS

Efficiency Solutions

Expansion Solutions




Supply ChainExecution SystemsIT-enabled Logistics

SKU

Warehouse Controls and Equipment

Enterprise

MES Interface Products

Costreduction

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improvement

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changes

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Reducelead-time

Delivering Warehouse-to-Enterprise Connectivity with Automation and Control Solutions

Achieving warehouse operational excellence requires having access to the right information when you need it. Gathering real-time supply chain information for decision making can be challenging due to silos of data. It requires in-depth knowledge to assemble this information to and from various disciplines including, enterprise resource planning, IT, supply chain management, inventory control, quality control, maintenance and machine status and fi nance. Mitsubishi Electric Automation’s e-F@ctory solution provides an essential link between the ERP, WMS/WCS, and warehouse fi eld-level devices.

e-F@ctory Solution Improves Warehouse and Logistics Operations Management by:

• Delivering superior management of material fl ow, inventory levels, uptime and predictive maintenance

• Optimizing warehouse yield & throughput while ensuring full traceability and containment

• Reducing network infrastructure, overhead costs and failure points

• Handling large amounts of data without corruption or loss

• Simplifying implementation of control, automation and connectivity

• throughput while ensuring full traceability and containment

• overhead costs and failure points

• without corruption or loss

• automation and connectivity

Offering the latest in automation technology

e-F@ctory is a total warehouse control solution. It provides warehouse floor-to-enterprise connectivity, warehouse operations management and equipment control and automation.




New Levels of Intelligence in AutomatedStorage & Retrieval SystemsFast, Flexible & Low Cost "Each" Picking and Handling Automation

Picking, storing and retrieving "eachesor split-case" parts and items is whatSapient Automation has built its products, services and solutionsaround. Thinking outside the box toprovide cost effective solutions forevery organization’s applications:

• Order Picking• MRO• Parts Storage• Inventory Handling• Tool And Die Storage• Kitting• Buffering Systems• Sample Storage• Order Consolidation

Sapient Automation System Benefits:

• Reduces labor by up to 2/3• Saves up to 85% of floor space• Increases accuracy to 99.99%• Extends order cut off times• And many more!

Range of Products

A complete line of state of the art

automated storage and retrieval

solutions including Horizontal

Carousels, Vertical Lift Modules,

Vertical Carousels plus Inventory

and Warehouse Controls Software,

allows Sapient Automation to provide

the best solution.

The Sapient Automation Advantages:

• ROI Often 9 to 24 Months on Labor Only!

• Cost effectively update ALL new or old carousel control systems to state of the art which doesn’t require gearbox or motor changes, provides remote healthmonitoring and is AC or DC compatible…fast and easy!

• COP (Customer One Protection®) organization that is ready to install, service and maintain Carousels and Vertical Lift Modules (VLMs) to their top performance levels throughout North America and the world!

• More flexible, reliable and efficient than robot systems… at a fraction of the cost.

• Full suite of inventory management to warehouse controls software that grows as your business requirements change.

• Each product has a full range of unique features and benefits to optimize all applications.

Full Range of “Goods to Person” Automated Storage & Retrieval Systems

877.451.4044 | www.GetSapient.com | [email protected]

Call today for a free no cost or obligation - labor, space savings and ROI analysis.

Sapient Advertorial 2012 6/21/12 1:58 PM Page 1




Now on the West CoastWith the June 1st opening of Steel King’s West Coast Distribution Center in Montebello, California, west coast material handing dealers can now enjoy the time- and cost-saving advantages of our 48-Hour Quick Ship program featuring our SK2000® Pallet Rack and Steel Guard® product lines.

One call does it allSimply call Steel King, place your Quick Ship order and let us handle the freight

arrangements. Not only will you save time and frustration, you will also save an additional 4% if your order is shipped utilizing a Steel King

designated carrier. Within 48 hours from the

time your order is confirmed and verified, your

delivery is on its way.

2700 Chamber Street • Stevens Point, Wisconsin 54481

800-826-0203 • www.steelking.com

Steel King provides a Fast Solution to material handling distributors

Three convenient locationsNew London, WI • Rome, GA • Montebello, CA

Over 200 products are available.*

Racking Systems• SK 2000® Boltless Pallet Rack

250% more impact resistant Seismic designed frames and beams

• SK3000® Structural Pallet Rack

• Pallet Rack Accessories

Other Rack Systems• I-Beam Cantilever Rack

Starter and adder kits

• Stac-King Portable Racks

Safety Products• Steel Guard®

Everything needed to install an ORIGINAL Steel Guard bolted or lift-out industrial safety rail system

• Guard Dawg® Rack End Guards

• Column Protectors

Containers• Corrugated Containers

Low-cost bulk storage

• Hold’ N Fold® Containers

• WorkingTainers®

*Not all products are available at all locations.

Quick Ship program highlights:

For more information about Quick Ship, visit www.steelking.com/quickship

For credit terms, product availability, or to place an order, call 800-826-0203

For over 40 years, Steel King Industries, Inc., has engineered and manufactured premium quality industrial racking systems, safety products and containers to meet virtually every material handling need.




A Wealth of ExpertiseA Wealth of ExpertiseFor more than 60 years, System Logistics Corp. has been a trusted leader in the design, For more than 60 years, System Logistics Corp. has been a trusted leader in the design, manufacturing and implementation of material handling systems that increase manufacturing and implementation of material handling systems that increase productivity, reduce costs, and improve order accuracy. Our approach is to collaborate with our customers at every step. The development process begins with comprehensive data analysis in order to at every step. The development process begins with comprehensive data analysis in order to understand how best to address their unique challenges. Next, system planning and design are understand how best to address their unique challenges. Next, system planning and design are supported by our full range of material handling technology and our suite of advanced software supported by our full range of material handling technology and our suite of advanced software solutions. The end result is a flexible and dynamic system that allows for expansions and solutions. The end result is a flexible and dynamic system that allows for expansions and modifications as our customers grow, evolve, and pursue new opportunities.modifications as our customers grow, evolve, and pursue new opportunities.

Whether you’re tackling e-commerce distribution, food and beverage distribution, or Whether you’re tackling e-commerce distribution, food and beverage distribution, or constructing jumbo jets, we have a solution that fits your business.constructing jumbo jets, we have a solution that fits your business.

Partnership. Innovation.Creating Supply Chain Solutions.

System Logistics Corp.888-233-6796

[email protected]

A Universe of Order Fulfillment PossibilitiesA Universe of Order Fulfillment PossibilitiesA virtually countless array of solutions — each one specific to indvidual A virtually countless array of solutions — each one specific to indvidual customers — can be designed utilizing our comprehensive line of order fulfillment technologies. We provide partially designed utilizing our comprehensive line of order fulfillment technologies. We provide partially and fully automated, split-case picking, full-case picking and pallet handling systems tailored to and fully automated, split-case picking, full-case picking and pallet handling systems tailored to meet your specific requirements with the flexibility to expand as necessary. You can rely on our meet your specific requirements with the flexibility to expand as necessary. You can rely on our experienced sales, design and support staff to ensure that the picking solution created for you experienced sales, design and support staff to ensure that the picking solution created for you exceeds your expectations for exceeds your expectations for accuracy, productivity and economy.accuracy, productivity and economy.accuracy, productivity and economy

A Comprehensive World of Picking TechnologiesA Comprehensive World of Picking TechnologiesOur range of order fulfillment technologies is designed to make your manufacturing plant, Our range of order fulfillment technologies is designed to make your manufacturing plant, warehouse or distribution center more warehouse or distribution center more efficient, more productive and more profitable. We help you to achieve these goals by engineering ease of use, reliability, ergonomics and sustainability you to achieve these goals by engineering ease of use, reliability, ergonomics and sustainability into every system we deliver.into every system we deliver.

Our family of technologies available to solve your specific material Our family of technologies available to solve your specific material handling challenges includes:AS/RS unit- and mini-load • DIAMOND Horizontal Carousel • POWERdepot™ Vertical Carousel AS/RS unit- and mini-load • DIAMOND Horizontal Carousel • POWERdepot™ Vertical Carousel • MODULA• MODULA® Vertical Lift Module • DirectPick™ Pick-to-light and Pick-to-voice • Automated Buffers/Sequencers • Conveyor and Sortation Systems • Laser Guided Vehicle • System Vehicle Buffers/Sequencers • Conveyor and Sortation Systems • Laser Guided Vehicle • System Vehicle Loop • Palletizers and Depalletizers Loop • Palletizers and Depalletizers

Advanced Software ControlAdvanced Software ControlFrom a single piece of equipment to an entirely automated distribution center, the SYSTOREFrom a single piece of equipment to an entirely automated distribution center, the SYSTORE®

suite of software packages streamlines your integrated material handling solution for the suite of software packages streamlines your integrated material handling solution for the efficient management of all your operations.efficient management of all your operations.

Think Accuracy. Think Productivity. Discover System Logistics.




YA L E M AT ER I A L S H A ND L ING C OR P OR AT ION | P.O. BOX 73 6 7, G R EEN V I L L E , NC 2 78 3 5 -73 6 7 | YA L E .C OM

For more than 150 years, Yale Materials Handling Corporation has made good on the promise to get the

job done better, faster and at the best value. Yale® lift trucks are intelligently and innovatively designed,

engineered to high-performance standards, manufactured in world-class facilities, and supported by one

of the largest and most experienced dealer organizations in the world. In fact, the Berea, Ky., manufacturing

facility was awarded Plant Engineering’s prestigious 2011 Top Plant Award in December 2011.

“We combine our customer-centric product orientation with world-class manufacturing focus, evidenced

by awards like the Top Plant Award, to provide high-quality products that meet our customers’ needs,” said

Bill P� eger, president of Yale Distribution. “We apply this strategy across the globe by developing a strong

product base globally and then tailoring the features and options to the speci� c local needs of our customers.”

The full line of Yale products ranges in capacity from 2,000 to 36,000 lbs. and includes electric, gas, LP-gas

and diesel powered lift trucks, along with narrow aisle, very narrow aisle and motorized hand trucks.

“Our broad product base provides a vast array of materials handling solutions designed to reduce our

customers’ total cost of operation,” P� eger added. “As customers consider not just the initial purchase price

of the lift truck, but also the increased performance, the reduced maintenance and the robust interactive

features to make operators more ef� cient, they will understand the overall value that Yale® lift trucks provide

their business operation.”

Yale continues to add to and improve upon its product lineup. In the last 18 months, Yale introduced a new,

industry-leading 3,000-4,000 lb. sit-down electric rider truck series, a heavy duty end rider series with

industry-leading characteristics, and introduced a new model—the LX series.

“We are working hard to provide many more new products and

innovations in 2012 and beyond,” said Pfleger. “We see ongoing

areas for innovation in our electric product range and will pursue those

to provide an even greater, more ef� cient product to our customers.

We continually work with our customers and suppliers to identify

and develop new products and features that add value to our

customers’ operations.”

For more information or to � nd the Yale lift truck dealer nearest you,

call 1-800-233-YALE or visit www.yale.com.

BILL PFLEGERPresident, Yale Distribution



Aigner Index creates a new, wholly owned subsidiary!Aigner Index, Inc., a leading manufacturer and distributor of insertable,

plastic label holders for the material handling and library industries,has established a new, wholly owned subsidiary,

Aigner Label Holder Corporation.Aigner Label Holder Corporation will continue in its focus being the

leading manufacturer and distributor of Label Holders for storage applicationsthroughout North America. It will also seek to expand into other

product lines and geographic areas where strategic alliances may occur.

1.800.242.3919 www.aignerlabelholder.com

Akro-Mils is a leader in storage, organization and material handling products used to shorten assembly times, maintain accurate inventories, optimize storage space and improve parts protection. These products support 5S Lean practices and other initiatives to increase productivity and profitability in any setting, from industrial to healthcare.

Our innovative products – including new Clear Bins, Totes and Containers; Super-Size AkroBins®; and Slope-It™ Bin Inserts – have been designed with your needs in mind. Bin systems including shelving, cabinets, racks, rails, carts and louvered panels take back your floor space and improve storage efficiency.

A variety of custom products, OEM solutions and unique merchandising systems are available. Our unrivaled production resources, dependable quality and dedicated customer support provide custom solutions to meet your exact needs. From product concept to final design, your project will be guided in an efficient process that incorporates quality at every stage.

Manufactured under rigorous ISO standards, Akro-Mils products are quality tested to ensure they continuously meet your performance expectations. Akro-Mils is proud of the quality and service awards from our customers, and we apply the recognition we receive to work toward continuous improvement.

For more information, call 800-253-2467 or visit akro-mils.com.

Akro-Mils: Everything You Need to Store, Organize & Transport



Buckhorn Inc., a Myers Industries company, is one of North America’s leading providers of reusable plastic packaging systems. Focused on customer-driven innovation, Buckhorn offers an unmatched selection of reusable packaging solutions designed to protect your products and increase your profitability. Our new Website makes finding the right product for your application easier than ever. Browse our extensive product offering, or take the interactive product selector quiz to determine the best product for you.

Visit the NEW buckhorninc.com for more information, and request a quote today!

Buckhorn launches new Website

©2012 Buckhorn / Myers Industries, Inc. # 062212

BULK BOXES | HAND-HELD CONTAINERS | IBCs | PALLETS | SPECIALTY BOXES

US: 1.800.543.4454Canada: 1.800.461.7579www.buckhorninc.com

Phone: 877-532-9070 Ext. 301E-mail: [email protected]: www.capitolconveyorsinc.com

28121 Scippo Creek Rd. • Circleville, OH 43113

CCI Corp Ad_.indd 1 6/24/10 2:13 PM



CLARK Material Handling Company700 Enterprise Drive, Lexington, KY 40356TF: 866-252-5275 www.clarkmhc.com

C L A R K M a t e r i a l Hand l ing Company, h e a d q u a r t e r e d i n Lexington, Kentucky has experienced substantial g r o w t h i n s a l e s o f both forklift trucks and service parts over the last several years. With one of the broadest global footprints in the industry, CLARK boasts

over 350 dealers and 550 dealer locations spanning 102 countries worldwide. Together with our worldwide network of dealers CLARK offers an excellent level of support for a full line of CLARK’s lift trucks to customers located practically anywhere on earth.

In a continuing effort to improve and expand CLARK’s impressive breadth of products, we are proud to announce the addition of the 48-volt electric class III CTX 40/70 Tow Tractor (pictured). The reinforced all steel frame, solid pneumatic tires, large drum brakes, and optional weather enclosure ensures that the CLARK CTX 3-wheel Tow Tractor operates with the same ease of use, fl exibility, and rugged durability that has been at the center of CLARK’s manufacturing philosophy for nearly 100 years.

Customers looking to take advantage of fi nancing options when purchasing lift trucks need look no further than the full range of competitive purchase, leasing, and rental programs offered through CLARK and its dealers. A no-hassle process coupled with knowledgeable associate’s help customers make the right decisions when purchasing or leasing CLARK equipment that is simply, “Built To Last®.”

With continued emphasis on being a customer-focused material handling company, CLARK offers its heralded state-of-the-art parts look-up system, PartsPRO®, in a Customer Version for facilities preferring to maintain their own equipment. Interested customers should simply contact their local authorized CLARK dealer to fi nd about access to this powerful tool. As always, CLARK has forklift users of any brand fully covered with the TOTALIFT Parts Program providing parts for all brands of forklift trucks.

At CLARK we believe Customer Satisfaction is the only true measure of success.

Ryson International, Inc.300 Newsome Drive • Yorktown, VA 23692

Phone: (757) 898-1530 • Fax: (757) 898-1580VERTICAL CONVEYING SOLUTIONS

Ryson Specializes in Spiral Conveyors andother Vertical Conveying Solutions.

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.

Quality and service comes first at Ryson. 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.

Ryson is committed to a continuous product development program and to maintain our market leadership position. 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. For application assistance or more information, give us a call or visit www.ryson.com.




www.mhpn.com

MHPN.com, Material Handling Product News’ new website, offers the most comprehensive listing of new products in the materials handling industry. Whether you’re looking for the newest innovations in dock equipment or the latest software to control your material flow in the warehouse, MHPN.com is your first stop.

Check out MHPN.com today!

Your BEST Source for New Productsin Materials Handling!

Introducing MHPN.comYour daily source for new products

Covering:• Mobile & Wireless• Lift Trucks & Accessories• Automation• Conveyors & Sortation• Containers & Totes• Packaging & Pallets• Dock Equipment• And much more!


special report

A speciAl supplement to modern mAteriAls hAndling

By Josh Bond, Editor at Large

More savvy lift truck fleet managers are realizing that buying, renting or leasing practices set the tone for future savings.

Lift trucks:

Understanding the economic lifespan

t can be said that the recent economic downturn was the catalyst of modern fleet management, forcing lift truck fleet owners to analyze their operations in ways they never had before.

Not only has the market seen tremendous advancements in fleet tracking and monitoring tech-nology, but it has also witnessed the evolution of lift truck financing options. Savvy customers have devel-oped an understanding of a truck’s economic lifes-pan, and lately more are focusing on the beginning of that life—the moment when a signature finalizes a purchase, rental or lease.

Because that moment can make or break a compa-

I

Are you seeking an Order Fulfillment solution that creates space and labor savings while increasing accuracy and throughput? Through a detailed analysis, System Logistics will consider the right balance of velocity, density and cost to provide the ideal high speed buffering/sequencing solution that meets all of your business rules and requirements. Whether it calls for high volume assembly o p e r a t i o n s , i n d i v i d u a l l y selected case goods or case order consolidation, we will provide the perfect solution tailored to you.

HIGH SPEED BUFFERING AND SEQUENCING

Partnership. Innovation.Creating Supply Chain Solutions.

Automated Warehouse Solutions

Introducing the newest addition to the MODULA

line of VLMs, the SINTES1. Developed as a flexible and cost

effective way to enhance your picking and storage operation. This

feature rich entry level addition to the popular MODULA Lift family allows

you to save up to 90% of your floor space at an economic price point. This

unit will increase your productivity and picking accuracy while helping to create

a “greener” facility. It is perfect for smaller items such as electronics, pharmaceuticals

and maintenance repair operations.

HIGH DENSITY AUTOMATED STORAGE

System Logistics Corp 888-233-6796

[email protected]


ny’s efforts to optimize its fleet over the coming years, Modern spoke with indus-try analysts and lift truck finance experts to help readers prepare for that pivotal stroke of the pen.

“When a business considers acquir-ing a new piece of lift equipment, that’s akin to a consumer considering whether to buy, lease or rent a new car,” says Jonathan Kipp, relationship man-ager with GE Capital. Few consumers would rent a car just to get to work, or

lease a backup vehicle, and fleet own-ers would be wise to avoid these situa-tions as well.

Currently, many more lift truck cus-tomers lease rather than rent or buy outright, according to Kipp. “Many of the benefits of leasing apply just as much to small businesses as to Fortune 500 companies,” he says. “Leases can be structured to maximize cash benefits in addition to helping address a maze of tax and accounting rules, while miti-gating many risks and expenses of asset ownership.”

Although the affordability and pre-dictability of leasing offers improved cash management and flexibility, some customers still cling to the historical

perception of leasing as a restrictive agreement destined to produce huge end-of-term bills.

However, as customers become more devoted to squeezing each and every penny from their fleets, so have equipment finance partners devel-oped products around the same goal. Along with the fairly straightforward processes of buying, renting and leas-ing, customers can now pursue pay-by-the-hour leases, unconventional term

lengths, negotiable lease pro-visions, and on-the-fly term extensions or monthly pay-ment adjustments.

None of these options is a guaranteed success, but with a comprehensive understand-ing of the lift truck’s applica-tion and a working relation-ship with a finance partner, fleet owners will be ahead of the curve.

When and how to buyNot long ago, more customers were buying outright than leas-ing, says Jeff Bailey, director of Crown Credit Company. “It has been a very trying last few years,” says Bailey. “During the recession, there wasn’t a lot of anything going on.”

There was pent-up demand, he says, and a lot of com-panies had cash built up—so, many bought outright. Government incen-tives for capital expenses contributed to the recovery. “Now we’re trending differently,” says Bailey. “Now it’s flip-flopping again, and more customers are leasing.”

For Brian Markison, senior man-ager for national accounts at Nissan Forklift, the decision of whether to buy or lease hinges on how quickly the cus-tomer will consume the economic life of the asset. If the answer is “quickly,” then lease. If the lift truck will only be used 1,000 hours per year, don’t lease. Instead, the customer might buy or rent long-term.

Another consideration, says Markison, is whether the asset in question is a spe-cialty item or has a robust secondary mar-ket. If not, it might be best to buy.

Bill Buckhout, marketing manager for Raymond Leasing Corp., says the customer niche that buys equipment should have an application where equip-ment will last a long time, maybe as much as 20 years. “For all the right rea-sons, a customer who would like to pay in cash should not buy outright,” says Buckhout. “They might consider a sin-gle-payment lease, but then they’ll have to plan for that equipment to go away at some point. All kinds of bad things can happen when people try to buy some-thing with a finite economic life.”

When and how to rentRentals for any length of time, whether one day or one year, require the cus-tomer to pay a premium for the conve-nience of returning a lift truck at their leisure. While rentals can provide great flexibility, they are also more costly.

“Short-term rentals must be just that—no more than two to three months,” says Markison. “A customer who keeps renewing these agreements can spend as much in one year as the asset would cost to buy outright.”

Some customers slip into this cycle accidentally, he says. Rental expenses might come from a different budget than capital expenses, and might be subject to less scrutiny as a result. “I’ve seen operations with rental trucks that corporate didn’t even know about,” says Markison. However, if a company is strongly averse to a commitment of more than 12 months to 24 months, a long-term rental might be appropriate, he says.

Tina Goodwin, director of finan-cial services for NACCO Material Handling Group, has a different rubric. “When I look at renting, I think of a customer with seasonal peaks who needs a truck for just a month or two at a time,” she says. “That’s the only time I would recommend renting.”

Realistically, however, customers

MODERN special report A SPECIAL SUPPLEMENT TO MODERN MATERIALS HANDLING

The right fleet finance option should be tailored to the application, which often varies within a facility.

S h i p p i n g A l w a y s F r e e

ShippingSupplies

Outdoor & Ground Maintenance

SHOP NOW > IndustrialSupplies.com CALL > 1-866-695-5407 EMAIL > [email protected]

MMH 0712

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often end up in long-term rentals if they can’t find the right lease agree-ment to satisfy internal provisions, or if for any reason a rental is not subject to the same internal scrutiny, as in the case of Markison’s customer.

“Otherwise, there are essentially no advantages to the customer over a lease for the same term,” says Goodwin.

When and how to leaseBack when businesses were flush and lift trucks languished at the bottom of the list of priorities, lease agreements were executed hastily as a matter of housekeeping. Canned agreements rarely lined up with the disparate reali-ties of the lift truck’s application, and leasing ended up with the reputation it is still working to shed.

“The lessee’s viewpoint was that leasing was just a ticket to get taken at the end of the deal,” says Bailey. “Now it’s a very desirable program. We quote leasing options on every sale.”

According to Kipp, the equipment finance industry continues to be a pow-erful engine for the U.S. economy, driv-ing manufacturing and service sector supply chains across the country. In fact, the Equipment Leasing and Financing Association (ELFA) estimates that last year U.S. businesses, non-profits and government agencies financed $628

billion of capital goods or fixed business invest-ments, up 21% from the year before.

“Companies that are in business today have worked hard, made smart choices, and navi-gated many challenges to get to this point,” says Kipp. “In my opinion, companies are carefully managing their working capital and they’re aware of the need to keep suf-ficient liquidity on hand. One of the ways they can manage their cash is by taking advantage

of the benefits of leasing equipment rather than buying it.”

Leasing today looks very different than the landscape even a decade ago, when Bailey says some customers “had no idea a lease was expiring until a salesman came out to visit.” Especially after the credit crunch, customers are looking for consolidated services—equipment, maintenance, and financ-ing—from the suppliers.

“Customers are starting to get smart about tracking their fleet, and that’s changing things,” says Bailey.

Eric Gabriel, senior manager of sales operations for MCFA, says customers should begin with an application sur-vey and structure the lease around the available data.

“We want to bring precision to that agreement for our customer, and the more precisely they know the application, the better,” says Gabriel. “Replacement should be happening at the exact right moment.”

Now, instead of traditional three-, four-, or five-year leases, customers can enter a 39-month term, says Markison, if that’s what works for their applica-tion. Still, too many customers rely on faulty—and costly—assumptions.

“It’s common for customers to sign an agreement for 2,000 hours per year and end up returning a really

nice piece of equipment with 5,000 fewer hours than they paid for,” says Markison. “Unfortunately, customers assume that because an operator is paid for eight hours a day that magi-cally the forklift will be used for 2,000 hours per year—when in reality it is probably much less.”

Goodwin says she sees customers on almost a daily basis who keep lift trucks far too long. One customer averages about 4,000 hours per truck per year. They requested a five-year lease, which means they’ll return equipment with 20,000 hours on it.

“That’s just unheard of,” says Goodwin. “The whole purpose of leasing is to use the truck for its eco-nomic life. The maintenance costs in that scenario would be huge, and the monthly payments for the lease are going to be comparable to buying the truck outright.”

That customer should be on a 36-month term, says Goodwin, but is fixated on the lowest possible monthly payments. The same fixation can lead customers to shop different leasing companies for the lowest payment despite huge differences in the struc-ture of the lease. “That customer comes back to us within a couple of years and says they got a huge bill for all sorts of nickels and dimes at the end of the term,” says Goodwin.

Signing the contractAccording to Rhonda Endo, product marketing and development for Toyota Financial Services, just 10 to 15 years ago, the local warehouse or operational managers made the buying decisions for purchasing or financing equipment in their areas. They might have been in the habit of swapping entire fleets every so often, as opposed to establishing staggered replacement cycles that are key to cost management.

“Today, customers are moving toward more centralized procurement models that bring a higher level of sophistication into the buying process,” says Endo.


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But that doesn’t mean operations should be kept out of the process. Markison recommends operations per-sonnel consult with the CFO during lease negotiations to ensure the cus-tomer has a thorough understanding of their obligations, such as return provi-sions. What is acceptable end-of-term damage? What about overtime, reloca-tion or early termination?

“So many people sign a document without reading it,” says Buckhout. “Lease contracts require more than legal overview. Someone who under-stands the operation must look it over in advance of signing, and should nego-tiate with the lease company to ensure a good fit. In fact, if you’re dealing with a leasing company that does not work with you to tailor the agreement, you’re dealing with the wrong company.”

Kipp recommends that lift truck cus-

tomers expand from local or regional banks to financing companies and spe-cialty lenders, where they will gain more than alternative sources of funding.

“They gain a trusted financial adviser and a valuable ally who can suggest additional leasing scenarios that may offer improved capitalization strategies over the long term,” he says.

When the end of the lease term arrives, Gabriel says it’s generally not ideal to extend the lease, which can often result in unplanned costs. However, lease extensions can also be used strategically, he says, instead of as an emergency alternative to careful planning.

“I’ve seen customers that have gone as long as 24 months defaulting to monthly or quarterly renewals,” says Gabriel. “You should be well-prepared to make a decision at least six months before the lease expires.”

For instance, if utilization were slow over a two-year period of the lease, a 12-month extension might be just the thing to ensure the customer gets value for their money.

Future trends Endo predicts the economy will continue to improve, as will customers’ equipment expenditures. Leasing is flexible and convenient, she says, and could remain the ideal choice for many businesses. But now that the traditional three-, four-, and five-year structures have been broken down, what other innovative approaches lie ahead?

In early June, NAACO Material Handling Group formally launched a new product called “Power Advantage,” according to Goodwin. The program features pay-per-hour leases that can be paired with pay-per-hour mainte-nance. Under the program, the lease company tracks and bills for hours used. Those administrative functions, as well as the risk associated with lease/sub-lease arrangements, are lifted from the dealer’s shoulders, says Goodwin.

This sort of new, more flexible struc-

ture resembles a “material handling as a service” model, although that’s cur-rently a term without a definition, says Buckhout. The concept could allow fleets from 1 to 100 to purchase the use of equipment. As far as the customer is concerned, the truck has no serial number and might be new or used. Buckhout says that this approach began in the 3PL industry, which is constantly pushing for more flexibility.

“It is very difficult for even a large company to make a five-year com-mitment these days,” says Buckhout. “These sorts of tools will allow cus-tomer to confidently scale their fleets.”

Buckhout also mentioned some potential changes to the Generally Accepted Accounting Principles (GAAP), the standards for the prepa-ration of financial statements. Though currently in the proposal stage, the new initiatives are designed to put assets back on balance sheets in an effort to make a statement a more honest depic-tion of the organization.

Currently, many lease expenses do not appear as capital assets on these balance sheets, he says. The ramifica-tions of such a move include a poten-tial reduction in a company’s return on assets, on which some bank loans and employee incomes are predicated.

“These changes could be three to five years out,” says Buckhout. “Those companies that prepare financial state-ments three years in arrears are likely listening closely, but it remains to be seen how new leasing products will fit into any new standards.”

As leasing structures evolve, atten-tive forklift customers will likely find themselves with as much flexibility, predictability, and liability as they might like. In the meantime, they can prepare themselves by shedding outdated prac-tices, mining for data, and finding the right business partners for equipment, maintenance, and financing.

If they’re lucky, they might be able to get all three from the same source. “After all,” says Goodwin, “Fleet and finance go hand in hand.” �


To ensure a good fit, someone in your organization who understands the operation should look over the lease agreement.

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FOCUS ON overhead handling

Quick ship electric wire rope hoists The Yale Cable King electric wire rope hoist is now offered in two quick ship configurations of 5 and 10 tons that are capable of lifting to heights of 30 and 44 feet respectively. Engineered for shorter lead times, each can be delivered in four to six weeks. The hoists feature a pen-dant, NEMA 12 geared upper/lower limit switch, NEMA 4 block upper limit switch, safety yellow paint and hoist and trolley motor fuses. Columbus McKinnon, 800-888-0985, www.cmworks.com.

safely operate electric chain hoist with one handFeaturing one-handed operation, the DCM-Pro Manulift electric chain hoist includes a control unit that is securely connected to the hoist with a helical

cable, then rigidly connects to a variety of load handling attachments. The device is single hand operated by either the left- or right-hand, and the opera-tor can easily move the chain hoist and accurately guide the load. Attachments

connect with a quick disconnect coupling with a universal coupling pin. Offered in two models, the hoists feature load capacities of 275 or 550 pounds and lift heights of 9 and 14 feet respectively. demag Cranes & Components, 440-248-2400, www.demag-us.com.

Maximize vertical space with flexible overhead hoist transport systemThe Sky-Rav overhead hoist transporta-tion system makes effective use of ceil-ing space to enable the construction of highly flexible lines. The systems travel along ceilings, leaving work paths on the ground unobstructed. Traveling at speeds up to 721 feet per minute, the

units offer flexible horizontal movement, including shunting, branching, merging and turning. Through lifter movement, the unit also provides vertical access to production and storage equipment. It may be equipped with a variety of handling

and transfer devices—such as cage and chucking systems or belt conveyors—to support multiple load types without requiring any special fixed equipment (including dedicated lifters) on the ground. Murata Machinery, 800-428-8469, www.muratec-usa.com.

electric chain hoists offered in seven capacitiesOffered in seven capacities from 125 to 1,050 pounds, dual speed, single phase ED Infinity electric chain hoists include a pendant equipped with easy access external speed adjustment knobs for quick customization of high and low hoist speeds. A heavy-duty, metal-hinged cover protects the knobs from damage and prevents the speed settings from shifting during operation. Ideal for work-stations and work cells, assembly lines, pick-and-place operations and fast pro-

duction environments, the unit includes a lightweight die-cast aluminum body, making it easy to install, transport and store. Other features include Weston-style and regenerative load brakes, a friction clutch for over-winding protection, nickel-plated, heat treated load chain and a stan-dard upper limit switch. Harrington Hoists, 800-233-3010, www.harringtonhoists.com.

smart crane can be monitored remotelyCustomizable with a variety of technolo-gies such as sway control, adjustable working limits, protected areas and shock load prevention, the Smarton crane incor-porates a smart motor/gearbox/control unit and remote monitoring and trouble-shooting with the supplier’s data center. The crane’s steel housing is based on box construction for torsion resistance, while its box girders are built with a positive camber that decreases the uphill effect as the trolley moves towards the end car-riage truck. For true vertical lift, the unit’s twin-rope configuration minimizes hori-zontal movement during load lift and low-ering for increased positioning accuracy with less wear on ropes, rope sheaves and rope drums. The crane may be specified with two different hook types—single or ramshorn—both offered with either manual or motorized turning. With a single trolley, the crane lifts capacities from 6.3 to 250 tons; two trolleys can lift up to 500 tons. Konecranes, 877-363-1895, www.konecranesamericas.com.

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single speed or inverter control electric chain hoist linesWith capacities from 1,000 pounds to 10 tons, a line of electric chain hoists is offered. The hoists come in single speed or inverter control models. Standard equip-ment includes mechani-

cal load brake, electric motor brake, overload alert, push button station and chain container. The hoists are stocked in lug, hook, plan or motorized trolley configurations. aCCo Material Handling solutions, 800-967-7333, www.accom-hs.com.

Position loads vertically, horizontally with articulated jib lifterThe Articulated Jib Lifter horizontal and vertical positioning device features an air balancer built into the second arm, making it ideal for reaching into inacces-sible areas where headroom limitations prevent conventional balancer use. A variety of standard models accommodate light to heavy lifting applications. For safety, the lifter comes standard with a threaded interface at the end-of-cable and a safety latch hook at end-of-chain. To accommodate low overhead clearance applications, the secondary arm can be mounted above the primary arm, while both primary and secondary joints pro-vide 360-degree continuous rotation. The lifter does not require an air lubricator, and includes a pistol grip metering valve control for vertical lift. Conco, 800-831-6026, www.concoma-nipulators.com.

explosion-proof hoists for heavy industryA line of compressed air- and hydraulic-powered (optional) equipment for safe lifting, moving and placement of loads is ideal for use in hazard-ous areas and environ-ments with potential

explosion risk. The Profi TI series hoists for surface and underground use oper-ates with four or six bar air pressures to lift capacities from 550 pounds up to 100 tons. The hoists may be outfitted with manual, reel chain and motorized traverse trolleys for overhead monorail operation at lift ratings up to 20 tons. To accommodate tandem or synchronized lifting operations, monorail style hoists lift up to 115 tons each. J d neuhaus, 888-638-4287, www.jdneuhaus.com.

Pneumatic air manipulator handles loads up to 940 poundsFor jobs that require the compli-ance and float of a pneumatic manipu-lator, the Simple Air Manipulator (SAM) device provides operators with high level feel and payload positioning. The device uses pneumatic power for quick response and maneuverability of loads up to 940 pounds. Vertical lifting and positioning is accomplished with compressed air that is operator controlled with a pistol grip metering valve. Optionally, an ergonomic twist grip controller with precision bear-ings minimizes vertical movement resis-tance. Features include end-of-arm rotat-ing axis with up to 18,000 inch pounds of moment loading and 360-degree rotation, pantograph construction for a rectangular working window, and an end-effector mounting surface that deflects less than 2 degrees when fully side load-

ed. Mounting options include overhead, trolley, pedestal or mobile/portable base. Positech, 800-831-6026, www.positech.com.

Hoist attachment handles 55-gallon drumsThe Parrot-Beak model HCB-BC drum handling attachment safely lifts steel, fiber and plastic drums weighing up to 2,000 pounds. Attached to any overhead hoist, crane or boom, it engages drums auto-matically. To ensure safe, reliable pick-ups, the device’s mechani-cal clamping system engages the top lip of the container, while an adjustable counter-balance on the main frame of the unit handles drums from 15 to 27 inches in diameter. During transport, a padded belt cradle protects the drum sidewall. The unit is offered in one- or two-drum configurations, including stainless steel units for food grade and pharmaceutical applications. liftomatic, 800-837-6540, www.liftomatic.com.

Control overhead cranes and hoists with handheld radio remoteThe Flex Pro handheld radio remote control for crane and hoist applications allows operators to maneu-ver loads with precise con-trol and smooth operation. The control uses the crane’s variable frequency drive control for stepless operation and pro-portionally moderate speeds. Features

include plug and play format and modular, seamless integration with the supplier’s line of components for custom-ized control. Magnetek, 262-252-6947, www.magnetekmh.com.

FOCUS ON overhead handling


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Just rollers when you need them. No need to deal with all the problems associated with special orders. Our in-stock line up now includes urethane covered bearing and press fit rollers in addition to our solid, DuraSoft ® no crush and finned rollers. They are available in a variety of styles, mountings and durometers and can be custom modified for your specific application. And they’re available when you need them without the design and mold cost or the lead time.

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Transfer a load between cranes and monorails To allow a load to be transferred between cranes and monorails to any destination within a facility, the patented track interlock-ing system uses a series of cranes, interlocks, spur rails, curves and switches without setting the load down. This saves time and enhances safety. For flexibility, the hoist carriers are not limited to the bays of the crane runway; they interlock crane-to-crane on parallel runways, or crane-to-spur-rail over a transfer point. The system may be equipped with manual pull chain, electric motor or air operation functionality. To ensure proper alignment

prior to engagement, indicator lights are included. All open rail ends feature trolley stops for safety. TC/American Monorail, 763-497-7000, www.tcamerican.com.

Magnetic plate handling system is battery poweredUsing electrically controlled permanent lifting magnets, a line of magnetic plate handling systems requires only low electrical power to turn the permanent magnets on and off. They feature large multiple magnets powered by a 24-volt DC wet cell bat-tery power supply that does not require a power supply cable reel drop. For safety, an indicator lighting system provides the operator with a positive indication that each magnet is attached to the load at full strength. Radio controlled, the device pro-vides single plate handling off a stack and will not pick up burn table support slats. Permadur Industries, 800-392-0146, www.permadur.com.


new line of forklift trucks debutsNow offered in select U.S. markets in 5,000- and 6,000-pound capacities, the Utilev line of diesel and LPG fuel forklift trucks are an alternative to vehicles with advanced functionality. As an uncomplicated solution for light- to medium-duty operating environments, the vehicles are ideal for facilities that use lift trucks intermittently during the day or week. A range of standard features and options may be selected to configure the truck to the needs of the applica-tion. Easy to operate, the trucks feature an ergonomic operator compartment. The vehicles’ simple components can be maintained without PCs, laptops or diagnostic tools. Constructed with robust components, efficient filtration and effec-tive cooling, the trucks are reliable and

backed by a standard limited warranty of 12 months/2,000 hours, and by a net-work of dealers with complete parts and maintenance availability. Utilev, 440-449-9669, www.utilev.com.

Protect and store flammable liquids in all-steel safety cabinetsStore flammable liquids safely while pro-tecting employees and valuable property with all-steel safety cabinets. Offered

with a choice of manual or self-closing doors, the cabinets feature fully welded, 18-gauge double wall construction with a 1.5-inch insulating air space. All compo-nents are manufactured from cold rolled steel. For easy fingertip operation, a flush-mounted paddle handle is included, while a fail-safe closing mechanism uti-lizes a three-point stainless steel bullet latch. The cabinet comes with a double key set and can be padlocked. All models meet NFPA Code 30 and OSHA standards. lyon Workspace Products, 800-323-0082, www.lyonworkspace.com.

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tion. With a 23.6 x 15.75 inch footprint, the totes are offered in two heights: 7.8 and 11.8 inches. Straight walls provide high cubic capacity, while the units’ rein-forced bottom prevents deflection. Both internal and external surfaces are smooth for easy cleaning, and the totes resist moisture, pests, mold and fungus. They

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Autoclavable up to 250ºF and resistant to extreme cold, Clear View Ultra stack and hang bins are manu-factured from heavy-duty, high-density tri-clear poly-propylene. Molded with front, back and side grips for easy handling, the bins organize inventory with multiple large label slots. A built-in rear hanger allows the bins to be hung from louvered panels or rails. For increased bin capacity and a quick view of contents, optional clear window inserts can be added. Twenty different sizes are offered from 5 x 4.125 x 3 to 18 x

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Nest and stack containers save space by stacking when full and nesting when empty. Offered in a variety of materials to accommodate a range of needs, the formu-lations include resistance to chemicals, electrostatic dis-charge and degreasers, autoclavability, flame retardance, and food handling. To facilitate movement, matched dol-lies with 3-inch diameter swivel casters may be specified. Dimensions range from 25.25 x 18 x 6 inches to 42.5 x 20 x 14.25 inches and include optional lids to protect contents from dirt and damage. Molded Fiber Glass Tray Co., 800-458-6050, www.mfgtray.com.

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Rugged, durable line of 3-wheel tow tractors

The CTX 40/70 elec-tric three-wheel tow tractors have been released. Offered in two models, the tractors are equipped with an all-AC powered, 48-volt drive system and regenerative braking. For smooth control and easy entry and exit from the vehicle, ergonom-ics have been optimized—including a fully adjustable full suspension seat, and automotive-style pedal, column and dash instrumentation. Rugged durability is enhanced with an all-steel frame. Clark Material Handling, 866-252-5275, www.clarkmhc.com.

Bin dividers create organization, enhance storage To create additional compartments inside a line of storage bins, a line of new length dividers has debuted. The heavy duty 40224 and 40234 dividers (for AkroBin models 30224 and 30234) support 5S Lean and other productivity initiatives. Molded of high-impact polypropylene, the bins and dividers are impervious

to weak acids and alkilis. The sturdy, one-piece construction is water, rust and corrosion-proof, allowing them to be used

in multiple settings. The bins can be used alone or with steel shelving, wire shelving, hanging systems and pick racks to create a complete storage and organization system. Akro-Mils, 800-253-2467, www.akro-mils.com.

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even works in applications with vary-ing ceiling heights for maximum storage density. The system enhances picking processes, including each picking and small case box picking, by delivering highly accurate storage.

“Because of its flexibility, the shuttle can work in facilities with low and high walls. With more facilities becoming landlocked, particularly in the metro areas, the system helps companies get

more storage out of the space that they currently have,” Clark said. “And it increases density in areas where pick-ers don’t have to travel into; instead the product comes out to them.”

Additionally, as TGW expands glob-ally to support its customers around the world, the company has opened three new offices in China, Switzerland and Brazil. “We recognize the importance of having a local office staffed by people who understand the unique needs of that particular region,” he said.

New features in Sapient’s Viper VLM increase storage density by 50%

“The automatic tray height scan-ning system automatically determines each tray’s exact storage height require-ment—down to a 1-inch increment—every time a tray is retrieved,” Romaine said. “That scan interfaces with the VLM’s control system to determine the

best storage position in the unit, based on optimal space and retrieval time.”

The new trays feature thinner side walls for more storage space; flat bottoms for use without tray liners; and unobstructed open storage areas with no dividers or support cross members. Trays come in 2-, 3- and 4-meter widths, making more parts avail-able for picking on each tray to increase productivity while reducing labor costs.

Mid-range industrial label printers Featuring fast throughput and metal construction, the PM43 and PM43c industrial mid-range rugged label printers are ideal for harsh environments including transportation, manufacturing and distribution centers. The printers offer reliable and intuitive communication options with a full color touchscreen, a choice of 10 languages or easy-to-use universal icons, and a multi-lingual intuitive Web-based user interface. To reduce IT support needs they include integrated device management, allowing the printers to be monitored from anywhere from handheld computers, laptops, smart phones or tablet computers using Wi-Fi or Ethernet connection. They print small bar codes, text and images with pinpoint accuracy and no-touch configuration with an optional embedded RFID chip. Intermec, 800-347-2636, www.intermec.com.


Specialty foam protective packaging includes recycled contentOffered as a sustainable packaging alter-native, three recycled content specialty foam products have debuted: Ethafoam

MRC (maxi-mum recycled content), Ethafoam HRC (high recycled content) and Stratocell RC

(recycled content). The foams are ideal for packaging/shipping products such as electronics, automotive parts, hardware and other items that need additional pro-tection during transport. The Ethafoam MRC polyethylene foam is made of 100% pre-consumer recycled resin content. The Ethafoam HRC polyethylene foam

includes minimum 65% recycled resin content. Stratocell RC is comprised of a minimum of 60% recycled resin content. All three products are offered in black. Sealed Air, 877-722-7631, www.etha-foam.com, www.sealedair.com.

Cabinet for lean manufacturingFor better workspace organization and management, the 5S cabinet offers clear acrylic doors for instant visibility and at-a-glance accounting of tools and parts at point of use to support lean manufacturing philosophies. The durable cabinet case fea-tures metal pegboard inserts. Alternately, solid hinged doors with additional peg-board storage may be specified.523-9462, www.stanleyvidmar.com, Booth 2532.

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Maximize storage space with ProHANGER™ … the perfect solution for storing and organizing long parts and supplies.

U.S. Patent Pending

Software directs, analyzes paperless picking activityExecutives, managers and supervisors can easily view pick rate productivity, accuracy and throughput with the version 6.0 release of LP dash-board. The software displays real-time, updated key performance indicators with drill-down granularity for facility, area, zone and employee-level views. Featuring a rich graphi-cal interface with drag-and-drop widgets for custom template views of performance data, the system offers an automatic slide-show style display of multiple, user-configured templates. Lightning Pick Technologies, 262-250-2143, www.lightningpick.com, Booth 1543.

Cleveland

Vertical storage systemFeaturing a stabilized shelf system with high storage density at an afford-able price, the motorized vertical pan carousel offers storage and retrieval of inventory with push-button control. The system delivers inventory to the opera-tor, yielding retrieval time savings up to 90%. Included standard are lifetime sealed bearings, shielded motors, secu-rity keypad, one-touch forward/reverse, wire mesh guarding and obstruction detectors.com, Booth 3018.

Treatment prevents mold growth on palletsE-fusion mold and mildew resistant coating and treat-ment system for wood pallets inhibits the growth of mold, preventing product recalls and refused ship-ments. The treatment bonds with wood during an elec-trostatic application process, making it ideal for pallets used in food and beverage handling, consumer prod-ucts, pharmaceuticals and paper products. 866-581-6653, www.xmold.net, Booth 625.

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PRODUCT Showcase

Temperature control cold chain packagingSuper-insulated temperature control and protective mailers and packaging lin-ers are made with components that are completely biodegradable. ThermoPod mailer envelopes and ThermoKeeper insulated box liners are offered as envi-ronmentally friendly alternatives to foam coolers and other non-biodegradable shipping containers. Constructed of waterproof poly film on the outside, perforated poly film on the inside, and recycled cotton and wool textile padding,

the mailer includes an EPA-approved anti-microbial additive to prevent cross-contamination. The double sealed mail-ers come in three sizes: 9 x 11, 12 x 14, and 14 x 18 inches. Box liners include the same padding and antimicrobial additive, formed into a soft flat panel, custom-sized and laminated. The liners fold together and are compressed to ship flat prior to use. MP Global Products, 888-379-9695, www.thermopod.net.


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Forklift equipment

forklift EQUIP.company Location: GULF COAST , Annual Sales: $1.5 mil , Profitable Mix: Sales/Service/Refurbishment , Owner: Retirement Contact: Doug Ashby, [email protected] , 832-239-9262

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Product showcase

green sheet foam protects, visually communicates environmental benefitsOffered as a means to visually com-municate the environmental profile of protective packaging, Microfoam Green is a low-density polypropylene (PP) sheet foam. The material is photodegradable, disintegrating between 44 and 77 hours. Manufactured with 40% less resin than polyethylene foam in the same thickness, the material is lighter in weight than small air cushioning at equal square footage for both source and shipping cost reduc-tion. It comes in 0.0625-inch thickness and roll widths of 24, 36 and 72 inches. To

reduce the chance of abrasion, its high coefficient of friction enables it to cling to the item it is protect-ing. Pregis, 877-692-6163, www.pregis.com.

SAVE TIMEWITH CREFORM AGVs.

Get lean by eliminating labor-intensive manned tuggers, forklifts or carts. Creform can help you automate your in-plant warehouse and production floor material handling. Our bolt-on AGV drives automate pipe & joint built carts and heavy-duty welded frame carts or just a few BST undercarriage AGV tuggers can mobilize an entire fleet of carts. From simple back-and-forth operations to plant-wide systems, Creform can do it all.

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Modern: Last fall, you and your colleagues published a study on the “Evolution of Logistics Sustainability” How is this area evolving?aimi: One of the early indications in our research was that when it comes to sustain-able logistics, there is a divide between people who own and operate physical transportation assets, such as transportation firms that move freight and shippers that don’t own their assets. Shippers were doing things that may have been sustainable, but really were just good business practices, like optimizing routes and redesign-ing their packaging to ship less air.

They were trying to do more with less, which is a good idea anyway. We also saw shippers doing some evaluation of mode shifting, or balancing service level requirements against the cost of the service. An example of that might be shifting from air freight, which is fast but expen-sive, to truck, intermodal, pure rail or vessel. And, we saw some shift to slow steaming where the ship slowed down to save fuel, but took longer to make a delivery.

Modern: How are things changing for transportation firms that own assets?aimi: On that side of the business, we’re seeing a lot more work that was physical in nature. We see interest in the EPA’s SmartWay program (epa.gov/smartway), and that will help owners become greener transportation logistics providers.

Companies are focusing on better performance from a sustainability and emissions standpoint. So, for instance, we’re seeing more alternative power units to control the temperature in the sleeper unit instead of running the diesel motor.

There’s a whole laundry list of things a firm can do to make a vehicle more efficient. We’re also seeing that

some major consumer product goods (CPG) companies are including the SmartWay program as part of their selection criteria. All things being equal, they would rather source from a green transportation provider.

Modern: Is the interest in sustainable logistics being driven by the consumer or by the board room? aimi: It may be a little of both and it often depends on the type of industry you’re discussing. One of the things we have found is that companies that are more con-nected to the consumer, like a CPG company, are inter-ested in their sustainability profile because there was some indication that consumer buying habits were being changed by the reputation of the company they were buying a product or service from.

That was less the case when you were talking about an industrial company supplying components or raw materials to another manufacturer, like an industrial supplier of parts. M

modern 60 Seconds with...

Greg Aimititle: Research director, Gartner

location: Boston, Mass.

experience: 18 years in supply chain and logistics

priMary Focus: Research related to strategies and best practices in logistics for Gartner’s supply chain division.

Since 1970, Steel King Industries has been designing and manufacturing high-quality, competitively priced material handling solutions.

• AS/RS Storage Systems

• Rack Supported Buildings

• Multi-level Pick Modules

• Flow and Pushback Racking Systems

• Pallet Racks

• Drive-In / Drive-Thru Racks

• Cantilever Racks

• Portable and Custom Shipping Racks

• Mezzanine and Work Platforms

• Industrial Containers

• Industrial Guard Rails

For more information, call (800) 826-0203

Supporting your product over 40 years.

www.steelking.com

System / Pick Modules

Work Platforms

Pallet Racks / Drive-in

Cantilever Rack

Steel Guard®

not thatTHIS

• Maximizes cube space in truck, one cart equals two pallets. Saves on labor and fuel costs.

• Eliminates the use of mechanized equipment (pallet jacks, forklifts, etc).

• Carts are safer and more ergonomic.

• Reduces chronic injuries associated with bending and lifting off pallets.

• Carts are not fl ammable - wood and plastic pallets can be toxic, or fl ammable.

• Carts are sustainable since they are made from steel.

• More environmentally friendly, no additional wrapping materials needed.

• Carts are more secure, protects load from product damage and reduces product theft.

Ask us about our Pallet BusterTM and our automated cart loading machinery!

Choose

OUR PALLET BUSTER CART PROVIDES SIGNIFICANT ADVANTAGES OVER PALLETS.TM

Material Handling

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Transcript of Material Handling