Modern Materials Handling June 2011 LEGENDARY PERFORMANCE P4T Mmh 11 06

User Manual: LEGENDARY PERFORMANCE P4T

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BIG PICTURE

What is an AGV? 22

EQUIPMENT 101 SERIES: PALLETIZING

Build strong, stable pallet

loads 30

SPECIAL REPORT

Software reader survey 36

+ Exclusive Modern Webcast

Putting data to work in warehouse &

distribution operations

Thursday, June 30 @ 2:00 p.m. ET

mmh.com

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June 2011

febi:

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German auto parts move faster than the speed of

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Dematic announces annual

conference keynote speakers

DEMATIC, A LEADING

systems supplier, recently

announced Dan Patrick and

Marcus Luttrell will serve as

keynote speakers for its 26th

annual Material Handling and

Logistics Conference to be

held Sept. 18-21 in Park City,

Utah.

Patrick is one of America’s

legendary sports journalists

and a revered member of

the national media industry.

Involved in the initial launch

of ESPN, he will discuss his

robust career as a sports

anchor/reporter and comment

on current sports news.

Luttrell, a former Navy

SEAL and author of the book

“Lone Survivor” will share

the story of how he and three

other SEALs journeyed into

the border of Afghanistan

and Pakistan on Operation

Redwing. A motivational

story of survival, his story is

an incredible account of teamwork, fortitude and

modern warfare.

The conference is a three-day educational event,

offering more than 60 classes, interactive workshops,

roundtables, and panel discussions addressing sup-

ply chain thought leadership, strategy, best practices

and emerging technologies.

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 3

Toyota doubles parts warranty

UP FRONT

Breaking news you should know

Dan Patrick

Marcus Luttrell

TOYOTA MATERIAL HANDLING USA, a leading lift truck

supplier, recently announced it has doubled the manufac-

turer’s warranty on new Toyota Genuine Parts purchased

through an authorized Toyota Industrial Equipment

dealer from six months or 1,000 hours to 12 months or

2,000 hours—whichever occurs first from the date of

sale. The warranty also applies on remanufactured Toyota

replacement parts at no extra charge and includes labor.

“This warranty is a testament to our confidence in Toyota

Genuine Parts and our reputation for providing the high-

est level of quality and durability,” said Terry Rains, vice

president of aftermarket sales. “Toyota’s industry-leading,

one-year parts warranty including labor is designed to

deliver to our customers Toyota parts and accessories that

help their lift trucks run at optimal performance.”

LAST MONTH, KIVA SYSTEMS, a developer of mobile-

robotic solutions that automate e-commerce order

fulfillment and warehouse operations, hosted an official

ribbon-cutting ceremony for the company’s new world

headquarters in North Reading, Mass.

The location boasts more than 120,000

square feet of manufacturing, engineer-

ing and demonstration space as well

as 40,000 square feet of office space.

Development of Kiva’s warehouse auto-

mation solution employs hardware and

software engineers, professional services

engineers and systems design consultants

with expertise in fulfillment operations.

The new location also serves as the

primary manufacturing assembly site

for the company’s high-tech hardware,

which includes robotic drive units, mobile

shelves, workstations and chargers.

Kiva Systems opens new

world headquarters

GROSS REVENUE FOR U.S. third-

party logistics (3PL) providers is

expected to be $141.2 billion in 2011,

a 10% increase from 2010, according

to estimates released last month by

Armstrong & Associates. U.S. 3PLs

had gross revenues jump 18.9%

in 2010 to $127.3 billion, slightly

exceeding the 2008 market result.

“The main takeaway here is

that 3PLs are taking advantage of

ongoing economic globalization,”

Armstrong & Associates chairman

Richard Armstrong told Modern.

Net revenue from 1995 through

2010 averaged annual increases of

12.7%—with 2009 the only negative

growth year since the company

began tracking the 3PL industry

in 1995. From 2009 to 2010, the

increase in 3PL net revenue was 4.7

times the rate of U.S. gross domes-

tic product (GDP) growth. One driv-

ing factor of 3PL growth was world

trade volumes, which increased

12.4% for 2010.

Armstrong & Associates report says

3PL industry is growing

Kiva founder & CEO Mick

Mountz with president &

COO Amy Villeneuve

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mmh.com MODERN MATERIALS HANDLING / JU N E 2011 5

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,

WAREHOUSING AND MANUFACTURING

VOL. 66, NO. 6

DEPARTMENTS & COLUMNS

3/ Upfront

7/ This month in Modern

14/ Lift Truck Tips: Fleet management

40/ Supplement: Warehouses & DCs

46/ Special Section: ProMat wrapup

51/ Focus On: Overhead handling

58/ 60 seconds with...

NEWS

9/ ISM reports manufacturing cooling off

11/ MHIA meetings: Are good times ahead

for materials handling?

11/ WERC announces 2011-2012 board

of directors

13/ Doosan establishes new forklift business

13/ U.S. pallet demand to reach 1.3 billion

units in 2015

COVER STORY

SYSTEM REPORT

16 To automate or not to automate

German auto parts manufacturer febi bilstein is reaping big gains from

automation. Here’s what the company learned when it automated

conventional distribution processes.

20 Automation in high gear

Febi’s new distribution center uses unit- and tote-handling automated storage,

conveyor and goods-to-person picking in an ergonomic work environment.

FEATURES

THE BIG PICTURE

22 What is an AGV?

If you think AGVs or automatic guided vehicles, are mature technology,

think again. Since 2005, the industry has seen an unparalleled level of

innovation.

EQUIPMENT 101 SERIES: PALLETIZING

30 Build strong, stable pallet loads

Forming a high-quality unit load is the goal of every type of palletizing

process. Here’s a look at how palletizing equipment puts the product into

a neat palletized load so it arrives at its destination safe and sound.

SPECIAL REPORT/READER SURVEY

36 Materials handling software usage

WMS, SCMP, WCS, LMS and more —Modern’s readers offer insights

into their use of software, from (alphabet) soup to nuts.

SURVEY RESULTS WEBCAST: Thursday, June 30 @ 2:00 p.m. ET

PRODUCTIVITY SOLUTION

35 No batteries, no downtime, no problem

Grocery co-op switches over to fuel-cell powered lift trucks to drive

its fleet’s uptime to 98%.

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.

2011 Peerless

Media, LLC.

PHOTO:

JEFF FUSCO/GETTY IMAGES

60 seconds with... Mark Longacre

German auto parts move faster than the speed of

light with automated equipment at febi bilstein.

MMH1106_TOC.indd 5 6/8/11 10:44 AM

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net

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COLUMNIST

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GROUP NEWS EDITOR

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CONTRIBUTING EDITOR

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CREATIVE DIRECTOR

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ART DIRECTOR

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ILLUSTRATION

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GROUP PUBLISHER

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EDITORIAL ADVISORY BOARD

Ron Giuntini

OEM PRODUCT-SERVICES

INSTITUTE

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ESYNC

TRANSYSTEMS

Susan Rider

RIDER & ASSOCIATES

Ken Ruehrdanz

DEMATIC

Dr. John Usher

UNIVERSITY OF LOUISVILLE

Col. Alan B. Will

2D MARINE LOGISTICS GROUP

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TOYOTA MATERIAL HANDLING USA

Peerless Media, LLC

A DIVISION OF EH PUBLISHING, INC.

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mmh.com MODERN MATERIALS HANDLING / JU N E 2011 7

Member Member of

Official Publication of

Winner

Jesse H. Neal

Certificates of Merit

for Journalistic

Excellence

EDITORIAL OFFICES

111 Speen Street, Suite 200

Framingham, MA 01701-1496

(800) 375-8015

Michael Levans

GROUP EDITORIAL DIRECTOR

mlevans@ehpub.com

Bob Trebilcock

EXECUTIVE EDITOR

robert.trebilcock@myfairpoint.net

Noël P. Bodenburg

EXECUTIVE MANAGING EDITOR

nbodenburg@ehpub.com

Lorie King Rogers

ASSOCIATE EDITOR

lrogers@ehpub.com

Sara Pearson Specter

EDITOR AT LARGE

sara@moxiemarketingllc.com

Roberto Michel

EDITOR AT LARGE

robertomichel@new.rr.com

Jeff Berman

GROUP NEWS EDITOR

jberman@ehpub.com

Josh Bond

CONTRIBUTING EDITOR

turbobond@gmail.com

Mike Roach

CREATIVE DIRECTOR

mroach@ehpub.com

Wendy DelCampo

ART DIRECTOR

wdelcampo@ehpub.com

Daniel Guidera

ILLUSTRATION

daniel@danielguidera.com

Brian Ceraolo

GROUP PUBLISHER

bceraolo@ehpub.com

PEERLESS MEDIA, LLC

A DIVISION OF EH PUBLISHING, INC.

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PRESIDENT AND CEO

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Brian Ceraolo

PUBLISHER AND

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MICHAEL LEVANS

GROUP EDITORIAL

DIRECTOR

THIS MONTH IN MODERN

Today, we’re consistently bombarded

with little bits and pieces of informa-

tion that, by nature, are only capable

of telling a very small part of any story. We

IM, Tweet, and chat, but lost in the noise is

the broader context we seek to make true

business decisions.

In an effort to help materials handling

professionals cut through all this clutter and

gain true insight, Modern’s executive editor

Bob Trebilcok has rolled out a series that

we’re calling The Big Picture. In this body of

work, Trebilcock breaks out of the tradition-

al “how-to” and “case study” mold to offer

an objective, broad-sweeping look at how

materials handling technologies and best

practices are making an impact on overall

business strategy.

Last fall, Trebilcock served up three

terriﬁ c Big Picture stories: one that offered

the market the closest look yet at how and

why robotics are being applied inside the

warehouse and DC; another that several

technology analysts called the best exami-

nation of RFID’s current and possible impact

on the materials handling market; and in

December, he took us inside the automa-

tion market to help managers make smart

decisions and build a stronger ROI case—if,

in fact, automation is the proper ﬁ t for your

operations. (Go to mmh.com to read all of

the Big Picture articles).

However, to take advantage of the

results of this hard work, The Big Picture is

going to force a Modern reader to sit back

and sink into the pages. So, as you’re mak-

ing your way through this month’s issue, I’m

going to suggest you close your laptop and

shut down your smart phone for about 25

minutes.

Starting on page 22, Modern dives into

the evolving world of automated guided

vehicles (AGVs), a market that’s been evolv-

ing faster than most over the past six or

seven years. In fact, both established and

new players to the AGV market are wres-

tling with just how to deﬁ ne their products

as they roll them out.

“We deﬁ ne an AGV as a computer-

controlled mobile robot used to move

materials around a facility,” Mark Longacre,

marketing manager for JBT Corp. and chair

of the AGV product section at the Material

Handling Industry of America, tells Trebil-

cock this month. “The way AGVs look and

what they’re capable of doing may have

changed, but there’s nothing in that deﬁ ni-

tion that didn’t apply 10 years ago.”

Some in the market may take exception

to Longacre’s point; but Trebilcock contends

that no matter what we call them, the new

technology driving today’s vehicles and

the innovative partnerships being forged

between the new guard and the estab-

lished OEMs are putting AGVs on the brink

transforming warehouse and DC operations

in ways not dreamed of when they ﬁ rst hit

the market.

“I think this is an iPad moment for

AGVs, especially carts, mobile robots and

hybrid lift truck/AGVs,” Trebilcock told

me. “Tablets were around for years and no

one cared. Then Apple realized the time

was right for something different. Like-

wise, some of these AGV solutions have

been around for years; but, like the iPad, I

think the focus on reducing overhead and

grappling with labor issues means the time

could be now for them to take a greater

hold.”

Take time for the big picture

MMH1106_Editorial.indd 7 6/8/11 10:42 AM

Goods to Person

When the piece picking function is optimized, it impacts everything. From

processing time, warehouse space, order accuracy to ergonomics and

speed, it’s an industrial engineering opportunity waiting for improvement. In

addition, today’s fulﬁllment operations are impacted by additional complexities:

wide variance in order proﬁles, larger swings in daily volume, and seasonal/

promotional peak periods that stress everything.

An industrial engineering solution that optimizes piece picking is the “goods to

person” method. Goods to person order fulﬁllment is all about efﬁciently staging

and then transferring SKUs to the order selector with speed and accuracy in

a comfortable work environment. This method is smarter, faster, and more

ergonomic than other piece pick systems.

Smarter

The operator stays in one place while items are delivered

to the pick station in precise sequence. Heavy items ﬁrst,

fragile items last, by family group or in whatever sequence

that makes the most sense. It’s also, smarter because it

allows ultra high pick accuracy. Typically, only one SKU

is presented to the operator at a time so there is no

opportunity to pick the wrong item. The pick station design

allows the highest possible worker productivity. With a fast

tote exchange, the operator doesn’t have to wait for the

next item to be picked.

Faster

Product for picking ﬂows into the pick station smoothly

and consistently- that’s made possible by an automated

inventory staging buffer. This is the “engine” that supports

high picking rates. Furthermore, it is compact and typically

uses 30 to 65 percent less ﬂoor space than other systems.

There is no dedicated pick face. So slotting and re-slotting

the warehouse is unnecessary, and so is the complex and

ongoing churn of SKU velocity analysis.

Ergonomic

In addition to sustained productivity, the workstation is

designed for employee comfort. The operator only picks

in the “golden zone”. There is no need to move hands

above the shoulder or extend arms beyond a comfortable

reach. The operator screen adjusts for height and angle

to minimize neck strain. Since loads are automatically

delivered to and removed from the workstation, operators

never need to lift or push cartons and totes. The ergonomic

design and simple, icon-driven operator touch screen

allows the pick station to meet Universal Access guidelines.

Operational Flexibility

Staff can work in parallel, unaffected by each other’s pace.

Pick stations can be opened and closed according to

volume on a particular shift. And, there’s redundancy in this

conﬁguration since items can be processed at any location

as the workstations are completely decoupled. The system

is not affected by changes in order proﬁle. For example,

single item orders and multi item orders are accommodated

with equal efﬁciency. This means that trends, like

more orders with fewer order lines, don’t compromise

productivity.

It’s a high performance solution that creates logistics

results. Goods to person, the most productive way to

provide high rate piece picking in a compact and ergonomic

environment.

For more detailed information about piece picking visit www.dematic.us or call 1-877-725-7500.

Fostering Supply Chain Education

D E M AT I C

UNIVERSITY

Split Case Picking In

Overdrive

SUPPLY CHAIN EDUCATIONAL SERIES DEVELOPED BY DEMATIC

MMH1106_Ads.indd 8 6/2/11 2:23 PM

mmh.com MODERN MATERIALS HANDLING / JU N E 2011 9

Company Brieﬁ ngs | Bob Trebilcock

How to submit a column to

Other Voices www.mmh.com/blogs

Di@blog

best of Modern’s blogs

BY JEFF BERMAN, GROUP NEWS EDITOR

ECONOMY

ISM reports manufacturing

sector cooling off

AFTER FOUR STRAIGHT MONTHS OF RAPID GROWTH IN THE

MANUFACTURING SECTOR TO KICK OFF 2011, THE INSTITUTE

FOR SUPPLY MANAGEMENT (ISM) REPORTED THAT OVERALL

ACTIVITY WAS DOWN SOMEWHAT IN MAY.

AFTER FOUR STRAIGHT MONTHS

of rapid growth in the manufacturing

sector to kick off 2011, the Institute

for Supply Management

(ISM) reported on June 1

that overall activity was

down somewhat in May.

In its May Manufactur-

ing Report on Business,

the ISM reported that the

index it uses to measure

the manufacturing sec-

tor—known as the PMI—

was 53.5% in May, down

6.9% from April, marking

the ﬁ rst time in 2011 that

the PMI did not crack 60.

Any PMI reading 50

or higher represents

economic growth. And

despite the sequen-

tial decline, May is the

24th consecutive month

economic growth has

occurred in the overall

economy and the 22nd

consecutive month economic activity

in the manufacturing sector has oc-

curred, according to the report.

“This month’s

index…[is] the low-

est PMI reported for

the last 12 months,”

said Bradley J. Hol-

comb, chair of the ISM

Manufacturing Business

Survey Committee, in

a statement. “Slower

growth in new orders

and production are the

primary contributors to

this month’s lower PMI

reading. “Manufacturers

continue to experience

signiﬁ cant cost pres-

sures from commodities

ISM manufacturing: PMI Composite Index

(Index, above 50% indicates growth)

65%

60%

55%

50%

45%

40%

35%

30%

2008 2009 2010 2011

Source: ISM and Peerless Media Research Group

May

53.5%

MMH1106_News.indd 9 6/7/11 3:44 PM

10 JU N E 2011 / MODERN MATERIALS HANDLING mmh.com

and other inputs.”

New orders were down 10.7% at

51.0, and production was off 9.8% at

54. Other notable readings include

employment down 4.5% at 58.2,

which Holcomb said reﬂ ects good

momentum. And inventories and cus-

tomer inventories were down 4.9%

and 1.0%, respectively at 48.7 and

39.5. Prices were down 9.0% at 76.5.

In an interview with Modern,

Holcomb noted that while the rate of

growth fell off in May, overall growth

in the manufacturing sector has been

occurring for nearly two years.

“It is an interesting correction,

although new orders and produc-

tion are off the highs set from

earlier in the year,” said Holcomb.

“While we saw excellent numbers

for the first four months of the year

we are now inevitably seeing…

companies taking the foot off of

the accelerator.”

The silver lining

Even though the May data was down,

Holcomb said there were continuing

signs of cautious optimism occurring

including a solid employment index

that reached a 38-year collective high

through the ﬁ rst four months of the

year.

But the most inﬂ uential factor in

the May numbers was pricing as it

relates to energy and commodities,

he said.

“Pricing was down 9%,” said

Holcomb. “There is some hope that

if additional softening continues,

especially on the energy side, we can

see that translate into growth for the

sector, as long as we see a continued

slowing down in pricing,” he said.

Looking at inventories, Holcomb

observed that at 48.7 in May they

are down for the third time in the last

four months and hovering around

the 50 mark. This, he said, shows

how companies are very carefully and

thoughtfully matching their invento-

ries according to the demand of new

orders they have and are being very

successful at it.

Although staying on top of

inventories is often a difﬁ cult task,

he said companies are not getting

ahead of themselves and are do-

ing a solid job of managing their

inventories effectively. Customer

inventories at 39.5 are considered

too low and this reﬂ ects a good

potential draw from the customer

base, with room for more restock-

ing with customers, and is a positive

indicator in this mix, according to

Holcomb.

MMH1106_News.indd 10 6/7/11 3:44 PM

mmh.com MODERN MATERIALS HANDLING / JU N E 2011 11

THE WAREHOUSING Education and

Research Council (WERC) named its

board of directors for the 2011-2012

year recently at its 34th annual WERC

Conference held in Orlando, Fla.

WERC is the only professional

association focused exclusively on

distribution and warehouse manage-

ment and its role in the supply chain.

Members are experts from all facets

of the distribution industry who come

together to share practical knowledge

and professional expertise to improve

individual and industry performance.

Board members include:

President: Lawrence Dean

Shemesh, president, OPSdesign

Consulting, Marlton, N.J.

Vice president: Lawrence G.

Corrigan II, VP of operations,

Medline Industries, Mundelein, Ill.

Secretary-treasurer: Gregory J.

Javor, senior VP of supply chain

operations global logistics,

Starbucks Coffee Co., Seattle, Wash.

Past-president: Catherine L.

Cooper, executive VP & CIO, OHL,

Brentwood, Tenn.

Director, 2012 annual conference:

Sheila Benny, executive VP, Optricity

Corp., Research Triangle Park, N.C.

Director, 2013 annual conference:

Chad W. Autry, PhD, associate pro-

fessor of Logistics, University of Ten-

nessee at Knoxville, Knoxville, Tenn.

Director of marketing membership:

Andrea Velasquez, VP of business

development, Epstein, Chicago, Ill.

Director of web services:

Sylvia Spore, technology manager,

RightSourceRx, Tempe, Ariz.

Director of industry relations:

Michael B. Wohlwend, VP, SAP

Americas, St. Charles, Ill.

Directors at large:

• Paul M. Avampato, VP, Catalyst,

Kraft Foods, Northﬁ eld, Ill.

• Stephen (Andy) Smith, president

& COO, Kenco Logistic Services,

Chattanooga, Tenn.

• J. Randolph (Randy) Lewis, senior

VP of supply chain and logistics,

Walgreens Co., Deerﬁ eld, Ill.

• Stan Danzig, executive director,

Cushman & Wakeﬁ eld, East Ruther-

ford, N.J.

Chief executive ofﬁ cer:

Michael J. Mikitka, CAE, CMP, CEO,

WERC, Oak Brook, Ill.

WAREHOUSING

WERC announces 2011-2012 board of directors

BY BOB TREBILCOCK, EXECUTIVE EDITOR

UNLIKE PROMAT, which is a show-

case for our industry, much of what

goes on at the MHIA spring meetings

focuses on the mundane, like annual

budgets and marketing campaigns

for product sections.

At the MHIA meetings in Char-

lotte last month, I sat in on three

discussions that were fascinating.

The ﬁ rst was an overview of the

economy and the state of the materi-

als handling industry by Hal Vandiver.

Now an executive consultant to

MHIA, Vandiver has been studying

the industry for years, calls it straight

and gets it right. Vandiver acknowl-

edged potential clouds on the

horizon, but he’s looking for 11% to

12% growth this year, and continued

growth through 2013. Some good

INDUSTRY OUTLOOK

MHIA meetings: Are good times

ahead for materials handling?

MMH1106_News.indd 11 6/7/11 3:44 PM

12 JU N E 2011 / MODERN MATERIALS HANDLING mmh.com

technology that moves the world

Efacec Products

lAS/RS Stacker Cranes

(for pallets or rolls;

single, double and

multiple depth storage)

l AS/RS Miniloads

(for totes and cartons)

l Aisle Switching for

both Stacker Cranes

and Miniloads

l Conveyors and Transfer

Cars (for pallets, totes,

cartons and rolls)

l Rail Guided Vehicles

(RGV)

l Automated Guided

Vehicle (AGV)

l Handling Control

Systems

l Warehouse

Management Systems

2755 Northwoods Parkway l Norcross, GA 30071

Tel: 770.446.8854 l Email: usa.logistics@efacec.com

www.efacecusa.com

things are happening.

The second was the membership

meeting of the group that repre-

sents systems integrators. During the

product meetings, members ﬁ ll out a

sheet that addresses business condi-

tions like their backlog of orders, their

pipeline of inquiries, whether they’re

hiring in manufacturing and engineer-

ing and whether wages are going up.

No one shares actual ﬁ gures. Rather

they use a scale that ranges from –2

(business is bad) to 0 (business is ﬂ at)

to +2 (business is good). Here’s what

I noticed, with one or two exceptions,

every member reported that their

backlog of orders and inquiries was

a +1 or a +2. Most companies were

looking to add hourly and engineer-

ing staff. No one was popping the top

on their Budweisers, but conﬁ rming

Vandiver’s outlook, the view from the

ground ain’t bad.

So, what’s driving that growth?

In a sense, that was part of a round-

table discussion by the group that

represents supply chain software.

Here are some key takeaways:

We’ve gone global: Whether you

chalk it up to a cheap dollar that

makes exports more attractive or

emerging markets embracing technol-

ogy to mitigate rising wages, global

markets are as important to our indus-

try as domestic markets. One domes-

tic provider of automation technology

pointed out that more than half their

business now comes from overseas.

It’s all about China: But not in

the way you think. Wages are go-

ing up in China, and that’s leading

our customers—the manufacturers

who use materials handling solu-

tions—to look elsewhere to locate

their factories. While its still unclear

whether near-shoring is a point

solution for some or a broad trend,

some manufacturers are relocating

to North America. If so, and it’s still

an if, that should be good news for

materials handling automation and

supply chain software as manufactur-

ers and distributors look to mitigate

their labor costs. As one participant

put it: “No one wants to hire, and I

hear that from everyone.”

Rethinking just-in-time: The

earthquakes and tsunami in Japan

are causing some of our customers

to rethink just-in-time strategies.

There’s a sense that we got way

too lean during the recession. The

question is: What role can materials

handling and supply chain software

systems play as manufacturers craft

new strategies?

MMH1106_News.indd 12 6/7/11 3:44 PM

mmh.com MODERN MATERIALS HANDLING / JU N E 2011 13

U.S. DEMAND FOR PALLETS is fore-

cast to rise 6.1% per year to 1.3 billion

units in 2015, valued at $15 billion. The

increase will be driven by a rebound in

manufacturing output. That’s the con-

clusion of “Pallets,” a new study from

The Freedonia Group, a Cleveland-

based industry market research ﬁ rm.

This pace will represent a dramatic

turnaround from the 2005-2010 period,

when demand fell to fewer than 1 bil-

lion pallets in response to a decline in

manufacturing output between 2007

and 2009 and a partial rebound in

2010. Through 2015, demand gains will

be driven by an expected advance in

manufacturing from the low 2010 base.

Some key points of the study are:

• Manufacturing will continue to ac-

count for the largest share of pallet

demand, totaling 75% of the market

in 2015, according to Freedonia.

• Demand will be supported by con-

tinued recognition of the suitability

of pallets as an inexpensive way of

shipping and hauling goods while

avoiding product damage.

• Providers of warehousing services will

purchase new pallets and expand

pallet refurbishing operations to add

to their pallet stocks and more effec-

tively serve existing customers.

• Pallet stock growth will be driven by

the increase in manufacturing activ-

ity as the U.S. economy rebounds

from the 2007-2009 recession.

• Growth in shipping activity will spur

demand for pallets to transport

and store goods.

• Plastic pallets will account for a larger

share of the U.S. pallet stock in 2015.

Plastic pallet demand is projected

to advance at a double-digit pace

through 2015, rising to 34.5 million

units. Demand will be driven by con-

sumer interest in the use of plastic

pallets because of their performance

qualities. Plastic pallets are also seen

as being environmentally friendly, as

they can be recycled.

• Plastic pallets will represent just 2.65%

of the overall pallet market in 2015.

Despite an increase in the market

for plastic pallets, pallets made from

wood—primarily lumber—will continue

to account for nearly 95% of the U.S.

market. Demand will be driven by the

new pallet market, as manufacturers’

shipments rebound and more pallets

are needed to ship and haul products.

However, refurbished wood pallets,

which accounted for 65% of the wood

pallet market in 2010, will continue to

lead the market in 2015.

We’ll handle it.

www.bulkpak.com

We’ll handle it.

www.bulkpak.com

LIFT TRUCKS

Doosan establishes

new forklift business

Doosan has announced the for-

mation of a new afﬁ liate com-

pany, tentatively named Doosan

Industrial Vehicle Co., Ltd. The

move effectively separates the

forklift business from the con-

struction, engines and machine

tools operations.

The existing forklift manage-

ment teams, dealership and sales

networks currently structured

within Doosan Infracore will be

absorbed by the new company

on July 1, 2011.

Managing director of the new

company, Kun H Lee, said the

move would also allow the busi-

ness to react quickly to market

requirements.

“As our business has matured,

we believe that the challenges we

have faced have also changed,”

he said. “And while we feel our

approach is one of the most

ﬂ exible and responsive around,

we believe that by setting up a

company focused solely on mate-

rials handling, we will be able to

respond even more quickly.”

RESEARCH STUDY

U.S. demand for pallets to reach

1.3 billion units in 2015

MMH1106_News.indd 13 6/7/11 3:44 PM

It’s easy to think of fleet manage-

ment as something that should only

concern companies with dozens of

lift trucks at DCs across the country.

But according to Jim Gaskell, director

of Global Insite Products for Crown,

that’s just not true.

“Even if you have one truck, every-

body beneﬁts from ﬂeet management,”

says Gaskell. “The guy with a few trucks

has a small problem, and the guy with a

lot of trucks has a bigger problem.”

At a basic level, ﬂeet manage-

ment involves using data to modify

operational and purchasing practices

with an eye toward ﬂexibility and ef-

ﬁciency. However, there’s a difference

between reading data and acting on

the data, says Gaskell.

“It’s two different skill sets,” he

says. “You either read data or you use

it to change the architecture of an

operation accordingly.”

But for companies without detailed

ﬂeet management practices in place, simply reading the

data can be enough to inspire signiﬁcant changes. Even the

most general utilization analysis can reveal stark differences

between gut feelings and reality.

“I tell my customers, ‘Don’t be shocked if you ﬁnd

you are only using your trucks about 30% to 40% of the

time,’” says Gaskell. “And they say, ‘What do you mean?

We don’t have enough trucks!’ Before they had the

knowledge, they didn’t know they had the problem.”

With data in hand, what decisions come next? Fleet

reductions or expansions? Is it possible to make labor

more efﬁcient? Are three shifts really necessary? Some

simple changes can yield returns in utilization ﬁgures, says

Gaskell, from 40% to 50%, for instance.

“The design of the warehouse or the user’s business

dynamics might create a ceiling that limits the customer

from reaching a work cycle beyond 50%,” he says. “And,

that’s okay as long as you’ve optimized the utilization of

your ﬂeet given these circumstances.”

Some of the most difﬁcult changes have nothing to do

with numbers. “People say, ‘That’s the way we’ve always

done it,’ or ‘Our goal is this or that,’” says Gaskell. “I tell

them to make a list of all these examples of traditional

thinking and then title it ‘Stinking Thinking.’ Then ask

yourself, after reviewing the data, whether you really want

to keep thinking this way.”

No piece of technology can help a company cross

that bridge, says Gaskell, but the ﬁrst step is to create an

environment where constant change is expected.

“That’s when you start the raindrop that starts the

wave that changes the organization,” he adds.

Josh Bond is a contributing editor to Modern and can be

reached at josh.d.bond@gmail.com.

lift truck TIPS

Read the data, then act

Fleet management reveals sometimes startling

realities in companies of all sizes.

14 Ju n e 2011 / Modern Materials Handling mmh.com

lift truck TIPS

By Josh Bond, Contributing Editor

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By Bob Trebilcock, Executive Editor

To automate

or not

to automate

German auto parts manufacturer febi bilstein

is reaping big gains from automation. Here’s

what the company learned when it automated

conventional distribution processes.

modern

system report

To automate or not to automate,

that is the question.

With apologies to William

Shakespeare, the decision to auto-

mate conventional materials han-

dling processes may not be as pro-

found as Hamlet’s soliloquy on life’s big questions,

but for companies like Ferdinand Bilstein, which

goes to market as febi bilstein, that decision was

every bit as important.

“Logistics is a core competency for us,” says

Frank Boecker, logistics director for the German

aftermarket auto parts manufacturer and distributor

based in Ennepetal. “Our order fulfillment systems

must be very fast. It is our competitive advantage.”

To maintain that edge, febi invested nearly

$50 million in a new logistics center with a highly

automated storage and order fulfillment system

(Witron Integrated Logistics, www.witron.com).

The new distribution center in Ennepetal con-

solidated two DCs separated by 35 miles into one

363,000-square-foot campus, which was opened

at the end of October 2008 and has been fully

operational since March 2009.

The new system features high-bay automated

storage and retrieval systems (AS/RS) featuring

21 stacker cranes, 40,000 pallet storage positions,

and 136,000 tote storage positions along with a

goods-to-person order fulfilment system. The sys-

tem manages 24,000 stock keeping units (SKUs)

and more than 100 million parts while processing

1,000 orders per day.

More importantly, the new system has allowed

febi to increase throughput while simultaneously

reducing head count from more than 400 employ-

ees to 350 in operations. Most of that savings was

the result of operating two shifts per day instead of

three shifts per day with the old system.

In all, febi saw a 20% increase in productivity

in the first full year of operation, followed by an

additional 20% increase in productivity in 2010.

“Automation has been an unqualified success for

us,” says Boecker.

At the same time, like Hamlet, febi bilstein

took time to consider the question of whether to

automate or not to automate.

MMH1106_CovStoryFabiAutomation.indd 16 6/8/11 10:17 AM

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 17

A history of market leadership

A family-owned company, Ferdinand

Bilstein has been in business since

1844. Today, the company is one of

the world’s leading manufacturers of

after market car and truck parts, with

subsidiaries in 11 countries and dis-

tribution capabilities in five of those

countries.

A key selling point of febi’s go-to-

market strategy is a high availability of

parts—the company stocks more than

100 million parts at all times—com-

bined with market-leading delivery

times and the ability to dispatch stock

orders within one day. For instance,

from the Ennepetal facility, febi deliv-

ers orders to customers in Germany

within 24 hours, to Europe within

three days and within five days to the

rest of the world. The company can fill

and pack a new order in as little as two

hours.

Over the last decade, febi faced

business challenges similar to many

distribution operations in North

America.

• Business growth: Despite a

global recession, febi’s business was

growing by more than 10% per year in

recent years.

• Complex order fulfilment

requirements: As a global com-

pany, febi was confronted by increas-

ing customer requirements, such as

country-specific legal requirements

that dictate special individual labels

to goods in several markets. “This is

a major prerequisite for breaking into

new markets,” says Boecker, “but with-

out the capabilities of our automated

system, it would have entailed a dis-

proportionately high amount of money,

labor and effort.”

• Smaller and more frequent

deliveries: Febi’s customers no longer

want to stock inventory. Instead, they

rely on febi to deliver smaller but fre-

quent reorders. Compared with 2008,

the company has seen a rise in small

volume orders of almost 20%.

• An aging workforce: Febi was

focused on increasing productivity so

that it could retain jobs in a tough

economy. At the same time, as with

North America, febi was confronted

by an aging workforce that could

benefit from ergonomic solutions.

“We needed productivity improve-

ments but we also knew that ergo-

nomics was one of the solutions that

would allow us to achieve productiv-

ity gains with changing demograph-

ics,” says Boecker.

Finally, febi was running out of

space in its existing conventional DCs.

In 2005, the company was operating

a 131,000-square-foot conventional

distribution center in Ennepetal and

a second facility about 35 miles away.

“We had storage capacity for 20,000

The new system at febi includes

a mini-load AS/RS (shown)

and a unit-load AS/RS. The

units enable goods-to-person

piece- and case-picking order

fulfillment solutions.

MMH1106_CovStoryFabiAutomation.indd 17 6/8/11 10:17 AM

18 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

pallets and we were shipping pal-

lets from one logistics center to the

other location,” says Boecker. “We

determined that we would run out of

logistics capacity in about two years

and our chairman told us we needed

to come up with a solution that would

meet our needs until 2015.”

Automation implementation

At first glance, automation appeared

to provide an answer for each of those

challenges. However, febi did not leap

directly from conventional warehouse

processes into automation. Instead,

the company made the move in two

steps.

The first step was to implement a

semi-automated order picking sys-

tem—what febi refers to as an Order

Picking System or OPS—in the exist-

ing facility in Ennepetal. This featured

38,000 tote storage positions and a

four-aisle, goods-to-person order pick-

ing system.

“We knew that automation was

going to be a big step and a big invest-

ment,” says Boecker. “Before taking

that step, we wanted to understand

what automation would mean to our

processes and how a larger, more auto-

mated system might work, so we began

with the first investment.”

That first system included a goods-

to-person picking solution. The system

delivers totes from a mini-load AS/RS

to an ergonomic workstation in the

sequence that the associate will pick

the items. Today, that system is pri-

marily used to aggregate slow moving

parts.

But this wasn’t just about swap-

ping a manual order picking process

for an automated system. Febi also

realized that an effective change

management strategy was critical

for the system to gain acceptance by

febi’s workforce.

For instance, febi associates helped

design the interfaces and displays on

the screens that direct picking. Their

input was also critical in the design of

the workstations themselves to accom-

modate an aging workforce.

One of the changes was to install

some 30 lift tables that allow the asso-

ciate to adjust the height of their work

space. “They really helped us design

the area, and we have other initiatives

to improve working conditions in the

facility today,” Boecker adds.

When the system went live in 2005,

febi trained key employees on the use

of the system. Those employees, in

turn, trained the rest of the staff.

“What we learned is that we were

much more efficient and productive

with automation, and we could turn

orders much faster,” says Boecker.

modern

system report

Totes are delivered from the mini-load AS/RS to workstations. Febi employees

played a role in the ergonomic design of their work areas.

Orders are prepared for delivery in the packaging area. Febi can assemble an

order in as little as two hours.

MMH1106_CovStoryFabiAutomation.indd 18 6/8/11 10:17 AM

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 19

Going live with

automation

With the first system a suc-

cess, febi began planning for

the new distribution center.

The new facility was

constructed next to the

facility in Ennepetal at the

end of October 2008 and

has been fully operational since March

2009. After three and a half months

of parallel operation, the new DC was

linked up to the existing semi-auto-

mated pallet warehouse and four-aisle

order picking system that was opened

in 2005.

The new system includes a 10-aisle

automated small parts warehouse

with 98,000 tote spaces. In addition,

a seven-aisle, high-bay warehouse

includes some 40,000 pallet storage

positions. The two systems combined

cover the vast spectrum of febi’s portfo-

lio of spare parts.

With the new distribution center,

febi is able to store more than 24,000

different articles with minimal space

required. According to the output plan,

the system can process more than

230,000 picks, which corresponds to

27,000 order lines per day.

The order picking system integrates

an automated small parts warehouse

with a distribution loop and upstream

picking stations. The system stages the

articles for a given order at the picking

workstations in the correct sequence

according to the goods-to-man princi-

ple. They are then picked and packaged

into the shipping carton. The optimal

size of the shipping carton is deter-

mined using a prior volume calculation.

Heavy, voluminous and bulky arti-

cles are stored and picked with the

pallet picking system, which is also

a goods-to-person system. The ware-

house control system directs all neces-

sary pallet movements from the high

bay warehouse and signals the stock

removal quantities to employees with

pick-to-light displays.

The dynamic picking front is gen-

erated for a given order by transfer

cars. The order pallet is staged cen-

trally at the picking front between

the individual warehouse pallets. As

a result, the paths that the employ-

ees have to take, as well as their lift-

ing duties, are minimized and the

work can be performed ergonomically

despite an article range of many dif-

ferent sizes.

The two buildings are connected by

a bridge. That allows the warehouse

management system (WMS) to syn-

chronize orders that are filled across

the two systems. Consequently, the

customer is always supplied with the

ideal package size.

Adding automation has also

allowed febi to redesign its picking

process. In the past, one worker was

in charge of filling an entire order for

a customer, everything from picking

the parts to printing out the labels

and paperwork. Today, the compo-

nents of an order are distributed

among employees.

“One employee is tasked with pick-

ing parts of the boxes for an order, and

another packs the parts and compiles

the paperwork,” says Boecker. “What’s

more, our employees are cross-trained

on each step and rotate jobs so that

they don’t get bored—and make mis-

takes—doing the same job over and

over.” Cross-training also allows Febi

to move staff between departments as

demand shifts.

Finally, the old pallet and tote ware-

houses have been reintroduced into

the total logistics concept to provide

further storage capacity.

“With the capacity of the new facil-

ity we are ideally equipped for the

future even as our business continues

to grow,” says Boecker.

Lessons learned

Febi has been working with the two sys-

tems for more than two years. Over that

time, automation has delivered some

significant improvements. In the first

year that both systems were in opera-

tion, productivity improved by 20%. In

2010, febi experienced another 20%

productivity improvement.

The company is now looking at

whether to add automation to its ware-

house operations in other countries as

well. More importantly, febi believes it

can meet its goal and maintain its mar-

ket-leading logistics position well into

2015. “We now have an entirely future-

proof logistics system that combines

maximum effectiveness, cost efficiency

and flexibility,” says Boeker. “This fur-

ther strengthens our service and cost

leadership ambitions within the indus-

try and provides us with a sustainable

competitive advantage.” M

modern

system report

The febi logistics center

also handles over-sized

items (left) and custom

packs items in a value-

added processing area

(below).

MMH1106_CovStoryFabiAutomation.indd 19 6/8/11 10:17 AM

20 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

high-bay, unit-load automated

storage and retrieval system (AS/

RS) and tote-handling mini-load

storage systems are the primary compo-

nents of febi bilstein’s logistics center

in Ennepetal. The logistics center is

comprised of two buildings completed

in two phases. In Phase 1, febi con-

verted its original conventional ware-

house into an automated logistics cen-

ter. Phase 2, which is connected to the

original building by a bridge, was built

later and is responsible for the majority

of the order fulfillment.

The system uses sophisticated order

fulfillment software to deliver pallets

and totes to order selectors in sequence

with a goods-to-person order fulfillment

scenario. The result is a system that can

handle increased order volume, higher

throughputs and improved customer

service levels without adding labor.

Receiving: Inbound pallets are typ-

ically received (1) in the Phase 1 build-

ing. Pallets are staged in the receiving

area and scanned into the warehouse

management system (WMS) and

checked by the quality assurance

department. The WMS then deter-

mines a storage location.

Putaway: From the receiving area,

slow-moving pallets are stored in a pal-

let rack in the manual area in Phase 1.

The remaining pallets are placed on a

pallet handling conveyor (2). Pallets

that remain in Phase 1 are inducted

into the unit-load AS/RS (3). Pallets

destined for the Phase 2 building

travel by conveyor across a connecting

bridge (4), where they are received and

modern

system report

Automation in high gear

Febi’s new distribution center uses unit- and tote-handling

automated storage, conveyor and goods-to-person picking

in an ergonomic work environment.

By Bob Trebilcock, Executive Editor

Ferdinand Bilstein,

Ennepetal, Germany

SIZE: 130,850 square feet in existing

building/231,425 square feet in new

center for a total of 362,275 square

feet

PRODUCTS: Car and truck parts for the

independent aftermarket

SKUS: 24,000

THROUGHPUT: 1,000 orders per day

SHIFTS: 2 shifts/5 days

EMPLOYEES: 350 to 400 in operations

Manual

bulk

Pallet

conveyor

Pallet

rack

Shipping

Staging area

Phase 1

Phase 2

Receiving

Pallet conveyor

7Depalletizing

10 Unit-load

work area

Value-

added

services

Mini-load

AS/RS

Mini-load

AS/RS

Picking

area 14

Packing 16

Buffer

AS/RS

Unit-load

AS/RS

MMH1106_CovStoryFabiAutomation.indd 20 6/8/11 10:18 AM

inducted into the unit-load AS/RS (5).

Oversized pallets that may not fit in either AS/RS are

stored in pallet rack in a manual bulk area (6). In either case,

once pallets have been putaway into storage, they are avail-

able to promise.

Replenishment: Items that will be piece picked or

placed in an inner pack are stored in one of two tote-han-

dling mini-load AS/RS systems. To replenish the mini-load

systems, pallets are delivered from the unit-load AS/RS (5)

to a depalletizing area (7). There items are depalletized and

placed into totes. Once complete, the totes are inducted into

the mini-load AS/RS system in Phase 1 (8) or Phase 2 (9).

Picking: Orders may include full pallet or mixed pallet

shipments. Either way, pallets are delivered by the AS/RS to

a workstation (10). Full pallets are picked up and transported

directly to a staging location in the shipping area. Otherwise,

an order selector will be directed by the system to pull cases

from the pallet and place them on a shipping pallet. Once

the pallet is complete, it is delivered to a staging location (11)

in the shipping area (12).

Totes required for piece picking are delivered from the

mini-load AS/RS (9) to smaller mini-load systems (13) in the

picking area (14). These are used as buffer storage and to

deliver totes to the picking stations in the right sequence to fill

orders. A display at the workstation tells order selectors which

items to pick and in which totes to place them.

Packing: Once a tote is complete, it may be conveyed

to a value-added service area (15) for kitting, for customer-

required labeling or for any special packaging requirements.

Once any value-added services are complete, the items are

transported to the packing area (16). There, a cubing algo-

rithm will determine the optimal shipping carton for that

order. Once the carton is erected, the packer will place the

item into the shipping container.

Shipping: In the staging area (11), parcels and pal-

lets will be married together if they are part of an order.

Then, they will be loaded onto an outbound truck in the

shipping area (12). 

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Manual

bulk

Pallet

conveyor

Pallet

rack

Shipping

Staging area

Phase 1

Phase 2

Receiving

Pallet conveyor

7Depalletizing

10 Unit-load

work area

Value-

added

services

Mini-load

AS/RS

Mini-load

AS/RS

Picking

area 14

Packing 16

Buffer

AS/RS

Unit-load

AS/RS

System suppliers

Systems integration, WMS and WCS: Witron, www.witron.com

Tote conveyor system: FAS Forderanlagen Systeme GmbH

(division of Witron), www.fas-saarbruecken.de

Pallet conveyor system: Binder,

www.binder-foerdertechnik.de

Mini-load AS/RS cranes: TGW Systems, www.tgw-group.com

Unit-load AS/RS pallet cranes: Dambach Lagersysteme,

www.dambach-lagersysteme.de

Totes: Georg Utz, www.utzgroup.com/en/6

Pallet rack: SSI Schaefer, www.ssi-schaefer.us

MMH1106_CovStoryFabiAutomation.indd 21 6/8/11 10:18 AM

22 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

By Bob Trebilcock, Executive Editor

If you think AGVs, or automatic guided

vehicles, are a mature technology, think

again. Since 2005, the industry has seen

an unparalleled level of innovation.

THE BIG PICTURE

Where Business Meets Materials Handling

Recent ProMat and North

American materials handling

shows have seen the intro-

duction of automatic guided

carts (AGCs), mobile robots and, more

recently, hybrid lift trucks to the AGV

portfolio. What’s more, new players have

entered the market, such as Kiva Systems,

RMT, Seegrid, SI Systems, INRO and

Kollmorgen. Lift truck manufacturers

are also getting into the game, including

Toyota Material Handling USA, Crown,

Mitsubishi Caterpillar Forklift America

(MCFA) and The Raymond Corp.

All these new vehicles may have you wonder-

ing: Just what is an AGV? Look closer, however,

and you find that each of these disparate vehicles

shares something in common: They open up

potential new opportunities for the market if end

users embrace them. That last caveat is a big if.

In some respects, the definition of an AGV

has not changed in years, argues Mark Longacre,

marketing manager for JBT Corp. and chair of the

automatic guided vehicle product section at the

Material Handling Industry of America (See 60

seconds with Mark Longacre, p. 58). “We define

an AGV as a computer-controlled mobile robot

used to move materials around a facility,” Longacre

says. “The way they look and what they can do has

changed, but there’s nothing in that definition that

didn’t apply 10 years ago.”

In fact, Longacre contends that even the inter-

est of lift truck manufacturers in the AGV space

is a blast from the past: In the late 1990s, FMC

Technologies, JBT’s predecessor, teamed up with

Hyster to develop the HyBot, an automated walkie

pallet truck.

Longacre may have a point. Conventional AGV

providers like Murata Machinery USA and Savant

Automation are busier than ever: “There are still

plenty of pallets around, and we’re seeing plenty

of demand for conventional fork-style AGVs that

interface with our automated storage and retrieval

systems (AS/RS),” says Tom Meyers, national sales

manager for Murata’s logistics and automotive

division.

“There are a lot of great new developments out

there from other companies,” adds Garry Koff,

What is an AGV?

MMH1106_BigPicturerAGVs.indd 22 6/7/11 2:59 PM

mmh.com Modern Materials Handling / Ju n e 2011 23

president of Savant Automation. “But

in my world, most end users can’t jus-

tify them. They can justify an AGV that

is user friendly, non-intimidating and

easy to maintain.”

Still, these new developments are

hard to ignore. It is a story told through

the product introductions at the materi-

als handling shows, going back to 2005.

ProMat 2005:

Automatic guided carts

At the 2005 ProMat, Jervis B. Webb

introduced a new type of vehicle to the

broad market: the automatic guided

cart or AGC. Webb had been toying

with the design since 2002, according

to Brian Stewart, president and co-

CEO of the Daifuku Webb Holding

Co., which now owns Webb. An AGC

was basically an AGV stripped down

to its core: A simple, light-duty plat-

form designed to follow magnetic tape

and deliver relatively light loads of

around 1,200 pounds from point A to

point B. Where an AGV used a roller

bed or forks to carry a load, a cart was

designed to move a frame that held the

product it was moving.

Carts didn’t make much of a splash

at the show. Conventional AGV mak-

ers dismissed them as a novelty. But

Webb believed there was a market.

“We believed we had come up with a

low-cost solution that reduced custom-

ers’ costs for getting into AGVs,” says

Stewart.

Webb initially promoted them to

the auto industry as an alternative to

tuggers to deliver parts to the line.

Over time, AGCs have evolved into

flexible, moving production lines.

“With the right kind of frame, the

cart can move an assembly from one

workstation to another without bolting

conveyor to the floor,” says Stewart. “If

your production needs change, it’s very

easy to move the tape and create a new

layout for the line.”

Today, carts are a significant reason

for the rise in the number of

AGV units being produced every

year. “A smart cart is now in the

$15,000 range,” says Stewart.

“And, with production volumes

rising, we’re getting to the point

where we will be able to go into

mass production mode, like a lift

truck, and bring the price down

to a point where you can’t ignore

them in distribution environ-

ments.” That includes carts that

can move loads of up to 5,000

pounds, Stewart adds. “Our goal

is to have a world-class mass pro-

duction line within the next seven to 10

years,” he says.

NA 2006: Automatic truck loading

Webb was back with another innova-

tion in 2006. Set up at its booth was

a mini-warehouse, including a pallet

pick up station, pallet rack for putaway

and picking, and an enclosed space

the width of a trailer with a dock plate.

During the demonstration, the AGV

automatically picked up a palletized

load from the staging area and then

loaded it into the pallet rack or onto the

back of the trailer.

Two years of research and develop-

ment with Anheuser-Busch led up to

that moment. “There were conveyorized

systems for automatically loading trail-

ers, but the conveyor was bolted down

and you needed to own your own fleet

of customized trailers,” Stewart says.

“Anheuser-Busch challenged us to come

up with a vehicle that could replace

fixed hard automation. We thought we

MMH1106_BigPicturerAGVs.indd 23 6/7/11 2:59 PM

could do it, and they had some creative

people who worked with us.”

Webb was not alone. At that same

time, Egemin and Transbotics were

also touting automatic trailer loading

technology, or ATL as it’s now known,

and JBT had vehicles in development.

Five years later, ATLs are still a niche

vehicle, but customers are adopting

them. JBT, for instance, has installed

ATLs at three plants for one major soft

drink bottler with plans to roll out five

more plants.

What’s more, the capabilities have

evolved beyond simply loading pallets

one at a time. Egemin, for instance, can

also unload trailers, work with pallets or

slipsheets, and adapt to multiple sized

pallets and loads on the same truck. In

addition, one of Egemin’s customers is

using an ATL to load pallets 20 deep in

a pushback rack system. “That’s a direct

result of ATL technology,” says Mark

Stevens, vice president of business

development for Egemin.

But what automatic truck loading

has really done is expand the business

case for AGVs.

“Truck loading is an enabler,”

Stevens says. “Not the end game.”

ProMat 2007: Mobile robots

In 2007, RMT Robotics, Kiva Systems

and Seegrid introduced mobile robots

to the industry. They were to AGVs

what go karts are to Formula 1 race

cars: small vehicles designed to move

small loads. But what really distin-

guished them is that they had unique

guidance systems that didn’t require

fixed paths, such as magnetic tape on

the floor or reflectors and lasers, to find

their way around the facility. Instead,

they could learn to find their way to

almost any spot in a facility.

Like ATLs before them, they were

the buzz of the show, even if no one

quite knew what to do with them.

Initially, at least, all three vendors

resisted the term AGV, although each

makes a vehicle that fits Longacre’s

definition. Part of the reason is that

they didn’t want to be identified with

the baggage that went along with early

AGV systems. “Back in the 1970s, AGVs

were touted as a technology that would

revolutionize the way materials handling

was done,” says Bill Torrens, director of

sales and marketing for RMT Robotics.

“Many of those early vehicles never lived

up to the hype and some early adopters

had negative experiences.”

While each has taken a different path

to the market, all three used their small

size and navigation capabilities to their

advantage. Kiva, for instance, doesn’t

think of itself as a vehicle company at

all, says Mitch Rosenberg, vice president

of marketing and product management.

Instead, “We are a warehouse control

software company,” he says. “We’ve

created a software platform for goods-

to-person picking that happens to have

these devices that are part of a broader

24 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

Lift truck manufacturers like Raymond and Toyota have plans to introduce

hybrid lift trucks/AGVs aimed at the distribution market.

Mobile robots, like this one from Kiva, are taking AGVs into new applications,

like goods-to-person order fulfillment.

the big picture

AGVs

MMH1106_BigPicturerAGVs.indd 24 6/7/11 2:59 PM

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 25

order fulfillment solution.”

RMT, like Kiva, saw an opportu-

nity for a low-cost, flexible vehicle that

could do more than move a heavy pal-

let from point A to point B. “We saw

the benefit of AGVs in promoting the

lean direction of manufacturing,” says

Torrens. “We developed a vehicle with

a navigation system that lets the vehicle

go anywhere it needs to go based on

what it sees in real time. That lets us

deliver what’s needed at the line, when

it’s needed and in the quantity that’s

needed in an expedited fashion.”

And while Seegrid began by carv-

ing a niche for itself by enabling case-

picking solutions, the company is now

licensing its vision-based navigation

system to lift truck manufacturers,

including Raymond and Linde, which

will use the technology to transform lift

trucks into automatic guided vehicles.

As an executive from

Seegrid explained, “Supply

chain professionals want

the ability to integrate

unmanned distribution

activities with their ware-

house management system

(WMS). A vision-based

guidance system gives

you the flexibility to easily

send the robot wherever

you want it to go so that it

can be interwoven with the

WMS just like a lift truck

operator. That’s where you

add value.”

ProMat 2009:

New players

Think Toyota Material

Handling USA and you

probably think world’s larg-

est lift truck manufacturer.

Think SI Systems, and you

probably think manufactur-

ing systems, including tow

line vehicles.

But if you attended

ProMat 2009, you saw

something different at both

companies’ booths: auto-

matic guided carts.

The technology was not new.

However, the entrance of two new play-

ers not previously identified with AGVs

or carts said something about how the

market was evolving. And while dif-

ferent catalysts sparked the interest of

these two companies in automatic vehi-

cles, at the end of the day, both com-

panies entered the field because the

needs of their customers were evolving.

SI Systems, for instance, realized that

in some assembly applications, a fleet of

AGCs was more economical than a tow-

line assembly system. “When you have

a vehicle-intense system, few decision

points and a lot of work in process, a tow

line system makes a lot of sense,” says

executive account manager Craig Sleep.

“But in smaller assembly systems, we

were losing business to carts.” What’s

more, they began to see other compa-

Automatic trailer loading AGVs, or ATLs, can now

load and unload trailers and interface with deep-

lane pushback rack systems.

www.interlakemecalux.com

WAREHOUSE

MANAGEMENT

SOFTWARE

MMH1106_BigPicturerAGVs.indd 25 6/7/11 3:00 PM

26 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

nies installing carts for line-side delivery

in plants where SI Systems was install-

ing a towline. “We had never gotten into

line-side delivery before, but we saw an

opportunity to offer a more complete

solution.” There were even opportuni-

ties to combine the two technologies, for

instance, using a cart to pick up a fixture

at the end of the towline and deliver it to

a kitting area.

Toyota, meanwhile, had exhibited

its first AGV at ProMat in 2007. The

Toyota Tug-Cart Mouse AGV was

already being used throughout Toyota

manufacturing plants to take subas-

semblies from one part of the plant

to the main assembly line. By 2009,

Toyota had expanded the product line

to include the L-Cart, a system that

allows an end user to use a variety of

components to create a cart that fits its

needs, almost like an erector kit. Toyota

devoted more floor space and offered

AGV demonstrations at its booth in

2009, sending a message that it was as

serious about AGVs as it is about lift

trucks.

In Toyota’s view, AGVs are a comple-

ment to its lift truck business, not com-

petition. “We do not believe it’s enough

to just be a lift truck salesperson,” says

Martin Boyd, vice president of market-

ing and product planning. “We want to

help you apply the Toyota Production

System philosophy to your plant and

see where you might benefit from auto-

mation. AGVs allow us to get our foot

in the door to start that conversation.”

In 2009, Toyota also began working

with AutoGuide Systems, which devel-

oped a plug-and-play kit that converts a

Toyota Class III tugger vehicle into an

AGV. At the end of the lease, the kit can

be removed and installed on the next

leased tugger. “We now have plans in

motion to apply that technology to more

models in our product line,” says

Boyd.

“To say that we’re optimistic

about this is an understatement,”

Boyd adds. “We see big things on the

horizon for lift trucks and AGVs.”

ProMat 2011:

Turning lift trucks into AGVs

Toyota may have started the

conversation about turning lift

trucks into AGVs, but the dis-

cussion continues.

That was made clear at ProMat

2011, where the talk of the show

was the new vehicles introduced

by Dematic and Egemin. Both

vehicles are aimed squarely at the

distribution center.

Built in conjunction with

Crown, Dematic took a solutions-

based approach to case pick-

the big picture

AGVs

Carts have also attracted new providers into the market, like Toyota Material

Handling and SI Systems. Both are now offering carts as an extension of their

traditional product portfolios.

First introduced at ProMat 2005, automatic guided carts have proved

themselves in lineside delivery of parts and as an alternative to fixed

path assembly lines for many manufacturers.

MMH1106_BigPicturerAGVs.indd 26 6/7/11 3:00 PM

Modern Materials Logistics Management Supply Chain Management

• Automation

• Conveyors & Sorters

• Inventory & Picking

• Loading Dock

Equipment

• Mobile & Wireless

• Shipping Pallets

• Storage Systems

• Containers & Totes

• Energy & Sustainability

• Lift Truck & Fork Lift

• Handling & Warehouse

Ergonomics

• Packaging

• Software & Technology

www.mmh.com/criticaltopics

Critical Industry News

at Your Fingertips!

Critical Topic areas help

you develop strategies and

expand your knowledge.

Each topic provides you

with the news, information,

and resources you need —

each day.

CRITICAL TOPICS

Modern Materials Logistics Management Supply Chain Management

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28 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

ing similar to what Kiva

is doing with piece pick-

ing. The solution com-

bines a pallet truck with

voice recognition technol-

ogy and order fulfillment

software to automate the

case-picking process: A

voice-directed order selec-

tor picks cases to a pallet

on the pallet truck; once

the pallet is full, the pal-

let truck is automatically

directed to the next step in

the process, which could

be another pick zone or

a drop-off location in the

shipping area.

Egemin, meanwhile, teamed up with

MCFA to create a hybrid pallet-handling

AGV. Turn the key one direction and it

can be operated like a traditional lift

truck. Turn the key in the other direction,

and it operates as a fully automated, con-

ventional AGV with trailer loading and

unloading capabilities.

While they were designed for differ-

ent purposes, the two vehicles share a

common vision: The AGV OEMs are

providing the navigation technology and

automation software while the lift truck

OEMs are bringing to bear the quality,

reliability and economies of scale that

come from mass production along with a

nationwide dealer network that can ser-

vice the mechanical systems of the lift

truck.

“Flexibility is a selling point,” says

Egemin’s Stevens. “But the value is

the lower total cost of ownership that

comes from a mass produced lift truck,

using off-the-shelf parts that can be

serviced by a local network of dealers.

Dematic sees this as an entrée into the

distribution market. “We are all trying to

move AGVs from manufacturing into dis-

tribution,” says Scott Hinke, vice president

of product sales. “That’s where we believe

there is a good return for our customers.”

While Dematic is beginning with case

picking, it has plans to roll out other auto-

mated lift trucks as part of its “Automate

the Conventional” approach to warehous-

ing. “We can focus on the controls, the

smarts and the order fulfillment solu-

tions while the lift truck manufacturer

can lower the manufacturing and service

cost,” says Hinke. “We think the cus-

tomer will see this as less of a risk.”

If the market now consists of two

classes of vehicles—conventional AGVs

as well as carts and mobile robots repre-

sented by Seegrid, Kiva and RMT—some

in the industry, like Claude Imbleau,

chief financial officer for Transbotics, see

the potential for a third class of hybrid

vehicles. “There will always be a market

for specialized vehicles that will be made

by AGV manufacturers like Transbotics,”

Imbleau says. “However, if we can pro-

vide the software and the lift truck manu-

facturers can deliver the quality that we

need, it makes sense to have them make

every day vehicles, like a fork vehicle.”

In fact, it seems as if nearly everyone

in the AGV and lift truck industry has

simultaneously had a similar idea.

Kollmorgen, a provider of navigation

and automation software to AGV manu-

facturers now offers the technology to

end users who can have the solution

installed on their lift trucks at the factory

or retrofit an existing fleet of lift trucks.

INRO, a New Zealand-based

startup, is taking a similar approach,

with software and technology to auto-

mate conventional lift trucks.

In May, Raymond signed a sales

agreement with Seegrid to develop

an automated lift truck powered by

Seegrid’s navigation software in North

America. At CeMat, Linde was pro-

moting similar vehicles for Europe.

JBT’s Longacre is right when he

points out that the two industries did

this dance 10 years ago to no avail. At

the same time, a number of computer

manufacturers, including Microsoft,

tried to introduce tablets a decade

ago without success. Today, thanks to

a confluence of events, including the

iPad, tablets are the hottest piece of

technology on the market.

Whether this is the AGV market’s

iPad moment and these new vehicles

will be embraced by the market is yet

to be seen. But it’s clear that the evo-

lution of the AGV market will not stop

any time soon. M

THE BIG PICTURE

AGVs

Companies

interviewed for this

article

Crown, www.crown.com

Daifuku Webb Holding Co., www.

daifukuwebb.com

Dematic, www.dematic.com

Egemin Automation, www.

egeminautomation.com/en

JBT Corporation, www.jbtc-agv.com

Kiva Systems, www.kivasystems.com

Kollmorgen, www.pick-n-go.com

Mitsubishi Caterpillar Forklift

America, www.mcfa.com

Murata Machinery USA, www.

muratec-usa.com

RMT Robotics, www.adamrobot.com

The Raymond Corp., www.

raymondcorp.com

Savant Automation, www.

agvsystems.com

Seegrid, www.seegrid.com

SI Systems, www.sihs.com

Toyota Material Handling USA,

www.toyotaforklift.com

Transbotics, www.transbotics.com

New navigation systems, like image-based navigation

from Seegrid, are enabling flexible AGVs that

can easily find their way to any spot in a plant or

distribution center.

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30 Ju n e 2011 / Modern Materials Handling mmh.com

modern

Equipment 101: Palletizing

A primer for warehouse/DC managers

Build strong,

stable

MMH1106_EquipReportPalletizers.indd 30 6/7/11 3:17 PM

mmh.com MODERN MATERIALS HANDLING / JU N E 2011 31

pallet loads

By Lorie King Rogers, Associate Editor

Forming a high-quality unit load is the goal of every type

of palletizing process. Here’s a look at how palletizing

equipment puts product into a neat palletized load so it

arrives at its destination safely and in good condition.

Strong, stable, secure. These are important qualities in a

palletized load. While palletizing is the science of placing

and securing units or containers on pallets, it can be some-

what of a materials handling art form.

“If product is going to move, it has to be in an easy to

handle unit load,” says Fred Hayes, director of techni-

cal services for the Packaging Machinery Manufacturers

Institute (PMMI, www.pmmi.org). “If it’s not on a pallet,

it’s not going to go very far,” Hayes adds.

Of course, product is moving all the time and often has

to go very far before reaching its destination. But getting it

there is only half the battle; the other half is getting it to

the final consumer in an appealing, salable condition. Enter

palletizing equipment.

From basic assist equipment that works in manual

operations to sophisticated robotic technology, here’s a

look at a few palletizing solutions.

MANUAL PALLETIZING

Manual palletizing can be done by people and without any

mechanical assistance at all. However, there are simple

solutions that can aid in the process.

Backboard: Since product placement on a pallet is

important to the load’s structure, a backboard can be used to

guide the loading process. Typically about 4 feet long and 6

feet high, a backboard is made of steel and welded together

in a 90 degree angle, explains Dan Johnson, product line

manager for palletizing for Brenton, a division of Pro Mach.

It’s a simple alignment aid that means workers spend less

time lining up the product as they build the load, he adds.

Lift assist and positioning: Manual palletizing can also be

facilitated with assist devices like powered lift tables or work posi-

tioners that are specifically designed for palletizing functions.

Using calibrated springs or pneumatic devices, pallet

positioners automatically adjust the height of the pallet load.

Pallet positioners can be topped with turntables so that oper-

ators can stay in one place and rotate the load rather than

waste time and steps walking around to build the pallet.

In some palletizing stations, when a pallet layer is com-

plete, the operator lowers the work surface as required to

maintain a comfortable working height.

Because positioners can hold up to 4,500 pounds, lift

trucks are required for depositing and retrieving pallets.

SEMI-AUTOMATIC PALLETIZERS

There are physical and ergonomic challenges when you are

palletizing manually. In addition, it’s difficult to attract and

retain enough labor to keep an operation moving smoothly.

Semi-automatic or automatic palletizing, with machines or

robots, can eliminate the risk of ergonomic injuries to work-

ers and reduce operator error.

Semi-automatic palletizing equipment, which is popu-

lar in niche markets where products are heavy and diffi-

cult to palletize manually, can handle up to 20 bags or cases

per minute. This equipment is well suited for low-speed

operations that can’t justify the cost of full automation but

require a solution to help prevent worker injury.

In one style of a semi-automatic palletizer, a conveyor deliv-

ers product to an operator who arranges it into a layer on a plate.

Then, with the press of a button, the plate surface retracts,

allowing the layer of items to drop onto the pallet just below. The

plate can be made of smooth metal, slippery polyethylene, roll-

ers or even an air table for especially heavy products.

In another example, an operator receives product on a

conveyor at an ergonomic workstation. A mixed-case pallet

is built on a lift that the operator lowers as required to main-

tain a comfortable working height, explains Ken Ruehrdanz,

warehousing and distribution market manager for Dematic.

AUTOMATIC PALLETIZERS

Fully automatic palletizing machines are the most ergonomic,

fastest and most efficient type of palletizing equipment. They

MMH1106_EquipReportPalletizers.indd 31 6/7/11 3:17 PM

32 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

are also the most expensive, with costs

depending on the speed of the machine

and the sophistication of the accumu-

lators, conveyors, pallet dispensers and

other ancillary machinery needed to per-

form the total palletizing process.

Two types of automatic palletizers

are available: conventional and robotic.

Conventional

Conventional palletizers are a good

choice for many operations, says Jason

Bennett, director of sales and market-

ing for vonGAL. That is because they

cost less than a robotic machine and

have a broader range of speeds, any-

where from 10 to 200 cases per minute.

There are several conventional pal-

letizers on the market, including high-

and low-level varieties, with the basic

difference being where product is fed

into the machine.

Low level: Low-level machines

receive product from the floor level

and are usually put right in packaging

area where product comes downstream

from the case packing equipment and

is ready to be palletized.

High level: High-level palletizers

receive product that is already avail-

able at ceiling level or use incline or

spiral conveyor to elevate product to

the right height. The machine forms a

layer of products on a plate, it positions

the plate above the pallet, and then

it retracts the plate, letting the layer

modern

Equipment 101: Palletizing

A primer for warehouse/DC managers

Palletizing equipment manufacturers

Company Web site

Semi-

automatic

Conventional

High-speed Mid-range

Robotic

Gantry

Articlulated

arm Hybrid

ABB abb.com x x

A-B-C Packaging Machine Corp. abcpackaging.com x x x

Bastian Solutions bastiansolutions.com x x

Beumer beumer.com x x

Brenton Engineering brentonengineering.com x x

C&D Skilled Robotics cdrobot.com x x

Columbia palletizing.com x x

Dematic dematic.com x x x

FANUC Robotics fanucrobotics.com x x

FleetwoodGoldcoWyard fgwa.com x x x

Fuji Robotics fujirobotics.com x

Intelligrated intelligrated.com x x

KUKA kukanao.com x x

Lambert Material Handling lambertpalletizers.com x x x

Möllers North America mollersna.com x x x

Motoman motoman.com x

Newcastle Co. newcastleco.com x x

Okura okura-sing.com.sg x x x

Ouellette Machinery Systems omsinc.net x x x

Powell Systems powellsystems.com x x

Schneider Packaging Equipment Co. schneiderequip.com x

T-TEK t-tek.com x x x

Thiele Technologies thieletech.com x x x

Top Tier toptier.com x x x x

Uni-Pak Corp. unipak.com x x

vonGAL vongal.com x x

Westfalia Technologies westfaliausa.com x x

Whallon Machinery whallon.com x x x

This table represents a sampling of leading palletizing equipment manufacturers.

MMH1106_EquipReportPalletizers.indd 32 6/7/11 3:17 PM

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34 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

modern

system report

descend onto the pallet. “It’s like the

old tablecloth trick where you pull the

cloth out and leave the dishes behind,”

says Pat O’Connor, product manager

for palletizing systems at Intelligrated.

The machines repeat the cycle,

sometimes changing the product place-

ment pattern, until the load is com-

plete. The varied patterned layers make

a stronger unit load.

“Almost all conventional pallet-

izers on market will come with a pat-

tern utility or offer it as an option,”

says O’Connor. “You can create new

patterns right at the operator interface,

which makes a conventional palletizer

very flexible.”

Robotic

Robotic palletizing has been coming

on strong in low- to medium-speed

operations.

While the initial investment in

equipment is higher, robotic pallet-

izing solutions can save you money by

reducing your labor costs and inventory

expenses, and increasing

availability and throughput.

Robotic systems can also

offer several advantages over

conventional machines. Pick-

and-place robotic palletizers

often have a smaller foot-

print, and they can simulta-

neously build multiple pallets

from multiple product lines.

Robotic speeds are mea-

sured according to how

many cycles per minute they

perform.

“The only way to accom-

modate the higher through-

put rates is to pick multiple

cases at a time,” says John

Schwan, director of sales

and marketing for QComp

Technologies.

Articulated arm: Most

robotic palletizing systems

use a jointed, or articulated,

arm to pick products from

an infeed conveyor and

place them on a pallet. The arms are

typically a four- or six-axis configura-

tion, with each axis providing a point of

movement. With this type, the machine

stays still and the products move.

Gantry: With gantry style robotic pal-

letizers, the opposite happens—prod-

ucts stay still while an overhead bridge

crane moves back and forth, picks up

product and places it in the designated

location. Spanning about 150 feet, a

multi-gantry system can pick 300 con-

current SKUs at more than 250,000

cases per day.

Robotic gantry systems eliminate

100% of the labor involved with build-

ing a mixed SKU pallet. “For safety rea-

sons, you can’t have people in a robotic

cell because of the unexpected motion

of the robot,” explains Brian Keiger,

technology sales leader of supply chain

logistics at KUKA. “The motions are

logical to robot, but not to the opera-

tor. The area is surrounded by an 8-foot

fence with conveyor getting pallets

in and full loads out without operator

involvement.”

End effectors: Robot end-of-arm

tools, or end effectors, that manipulate

product can include heavy-duty claws

for high-speed bag palletizing, vacuum

grippers for light and medium weight

cases, and clamp grippers for handling

heavy cases.

In one example, an end-of-arm tool

on the robot consists of fingers which

support the product as well as a clamp

mechanism which holds the product

during the robot move. The fingers of

the tool are inserted under the car-

ton products and lifted then the clamp

mechanism is activated to hold the prod-

ucts. When the layer is positioned over

the placement location the fingers are

pulled out from under the cartons and

they drop slightly onto the stack. The

clamp acts as a support while the fingers

are stripped out from under the cartons.

In another end-of-arm tooling exam-

ple, a head comes down and covers the

entire area of the product, rollers inside

the head engage the product at the bot-

tom and use friction rollers to lift it up

and move it. M

Typically located in the packaging area of an

operation, floor level palletizers range in speed

from 10 to 200 cases per minute. This one is

palletizing cases at the rate of 10 cases per minute.

“ Almost all conventional palletizers on market

will come with a pattern utility or offer it as an

option, you can create new patterns right at the

operator interface, which makes a conventional

palletizer very flexible.”

— Pat O’Connor, product manager for

palletizing systems at Intelligrated

MMH1106_EquipReportPalletizers.indd 34 6/7/11 3:17 PM

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 35

modern

productivity solution

At Central Grocers in Joliet, Ill., it’s all about

power. Central Grocers, a member-owned coop-

erative wholesale food distributor, was spending too

much time in its 970,000-square-foot DC on bat-

tery maintenance issues. So, the distributor, which

supplies 200 independent retail grocery stores in

Chicagoland and Northwest Indiana, joined a year-

long trial of fuel cell-powered lift trucks.

“Manually changing batteries was quite an

ordeal,” says John Coari, Central Grocers’ vice

president of distribution, “and we were only getting

about three to four years out of each battery.”

Looking to decrease the time spent on non-

valued added tasks and increase uptime, Central

Grocers incorporated a fuel cell-powered fleet

consisting of 234 vehicles. Throughout the year,

the company used and tested 51 reach trucks, 38

stand-up counterbalanced units, five sit-down

counterbalanced units and 140 center control pal-

let trucks (Yale Materials Handling Group, YES

Equipment and Services, www.yeslifts.com). When

the year was over, the results showed that the fuel

cell-powered lift trucks had an impressive uptime

rate of 98%.

In addition to the uptime benefits that fuel

cell-powered trucks provide, there’s no decrease in

power as a battery runs low. The fuel cell-powered

units run at full capacity until they need to be refu-

eled. And, with five hydrogen pumping stations

located throughout the facility, there’s plenty of

opportunity to refuel.

Refueling takes between 2 and 3 minutes. Not

only is it quick, it’s clean and safe. Distilled water,

which is the byproduct of the hydrogen fuel cell, is

stored in fuel cell and emptied during the refuel-

ing process. Because there’s no exhaust, fuel cell-

powered vehicles are an environmentally friendly

solution.

The results of the study were so good that Central

Grocers will continue to operate a fuel cell-powered

fleet, and Coari says the company has just purchased

eight more fuel-cell powered lift trucks. M

NO BATTERIES, NO

DOWNTIME, NO PROBLEM

By Lorie King Rogers, Associate Editor

Grocery co-op

switches over to

fuel-cell powered

lift trucks to drive

its ﬂeet’s uptime

to 98%.

MMH1106_ProductivitySolutions.indd 35 6/7/11 3:48 PM

36 JU N E 2011 / MODERN MATERIALS HANDLING mmh.com

WMS, SCMP, WCS, LMS and more—Modern’s readers offer

insights into their use of software, from (alphabet) soup to nuts.

READER SURVEY:

Materials handling

software usage

By Sara Pearson Specter, Editor at Large

MODERN

special report

Data, data everywhere! For companies in manufactur-

ing, warehousing and distribution, there’s no shortage

of information available about products and processes

throughout a facility. Indeed, it’s widely accepted that

the information about the movement of goods is every

bit as important as the actual movement of those

goods. The tricky part is harnessing that information

to its fullest competitive advantage.

That’s where software comes into play. Software

implementations seek to address key challenges, includ-

ing automation integration, labor optimization, billing,

fleet management, accuracy improvement, inventory

control and loss prevention, material synchronization,

order prioritization and supply chain visibility.

Supply chain management and planning (SCMP),

warehouse management systems (WMS), labor man-

agement software (LMS), warehouse control systems

(WCS), asset tracking software, yard management

software (YMS) and slotting optimization software

all help users make sense of information collected by

automatic data capture (ADC) technologies like bar

code scanning, voice recognition and RFID.

In January, Modern readers were surveyed regard-

ing their deployment of ADC technologies. As a com-

panion to that study, we surveyed e-mail subscrib-

ers of Modern in May about their use of materials

handling software. We received responses from 175

Modern Materials Handling Webcast

Results of Modern’s 2011 Software Usage Survey

Putting data to work in warehouse and

distribution operations

Thursday, June 30, 2011 @ 2:00 p.m. ET

MMH1106_SpecialReportSoftwareSurvey.indd 36 6/7/11 4:34 PM

mmh.com MODERN MATERIALS HANDLING / JU N E 2011 37

How has the current economic climate changed

your company’s approach to adopting materials

handling management software?

Source: Peerless Media Research Group

We are moving forward with new

software investment this year 30%

Plan to hold off on our

software investments this year 20%

We are scrutinizing software investments

and will move forward cautiously 37%

We plan to upgrade existing software

instead of buying new software packages 16%

We plan to outsource more

software implementations 4%

Other 8%

qualified readers—defined as someone

personally involved in the use, evalu-

ation or purchase of such software.

Survey respondents represented 23 dif-

ferent industries, including industrial

machinery, computers and electronics,

chemicals and pharmaceuticals, and

wholesale trade.

Nearly half (49%) of respondents

described their companies as being cau-

tious to embrace change when it comes

to adoption of technology for materi-

als handling procedures, with another

22% classifying their organizations as

either innovators or early adopters. In

light of the current economic climate,

37% are scrutinizing their current soft-

ware investments and intend to spend

with caution, while 30% are definitely

investing in new software before the

end of this year. Instead of buying new,

16% will upgrade existing systems while

20% are postponing their investment.

In the next 12 months, 54% indicate

they’ll spend less than $100,000 on

software (including license, integration

and training) and 39% plan to spend up

to $1 million.

Here’s what we learned across each

of the major software categories.

Warehouse management software

A warehouse management system

(WMS) controls the movement and

storage of materials within a facility and

processes the related transactions, such

as shipping, receiving, putaway and pick-

ing. Because it is so ubiquitous, our sur-

vey indicates that WMS is the most-used

software in a facility, with 60% of respon-

dents currently using a WMS; 36% plan

to evaluate, purchase or upgrade that

software in the next two years.

On average, a WMS has been in use for

6.5 years, with upgrades typically occur-

ring every 2.5 years. As for value, readers

say it takes an average of 12.3 months to

get a return on their WMS investment.

Companies are planning to buy a

WMS in the next two years for a variety

of reasons:

• 45% want to upgrade their existing

package.

• 36% are seeking better labor

management tools.

• 32% are looking for better inventory

deployment.

• 30% want real-time control.

Supply chain management and

planning

Supply chain management and planning

(SCMP) software integrates supply chain

transactions by managing relationships

with both customers and suppliers while

controlling related business processes.

Functions managed include customer

requirements, purchase orders, inven-

tory, goods receipt, warehouse operations

and supplier sourcing.

Just 34% of our survey respondents

have SCMP software in place and 16%

anticipate evaluating, purchasing or

upgrading that software in the next 24

months. These users, on average, have

had their SCMP system in place for

7.2 years and typically upgrade every

2.5 years. It takes a little more than 12

months to realize a return on invest-

ment in an SCMP system.

SCMP software is used for a variety

of initiatives:

• Procurement, with 53% currently

using SCMP and 26% planning

to purchase or upgrade for that

purpose.

• Inventory visibility, with 46% cur-

rently using SCMP and 33% plan-

ning to purchase or upgrade to bet-

ter track their assets.

• Order management, with 46% cur-

rently using SCMP and 35% plan-

ning to purchase or upgrade to gain

better control of orders.

MMH1106_SpecialReportSoftwareSurvey.indd 37 6/7/11 4:34 PM

38 Ju n e 2011 / Modern Materials Handling mmh.com

• Demand planning, with 37% cur-

rently using SCMP and 24% plan-

ning to purchase or upgrade as a

means to better predict trends.

• Other top initiatives include:

Collaboration with vendors/suppli-

ers (35% currently use/33% antici-

pated use) and manufacturing (30%

currently use/19% anticipated use).

Warehouse control systems

A warehouse control system (WCS)

handles real-time data management,

while coordinating and directing the

activity of a facility’s multiple materials

handling sub-systems (plus their moni-

toring, control and diagnostics). WCS

is currently in 28% of respondents’

facilities, with 19% planning to evalu-

ate, purchase or upgrade such a system

in the next two years. On average, WCS

has been in use in our readers’ facilities

for 5.8 years, with upgrades occurring

every two years. Most found it took 13

months to get the return on their WCS

investment.

Of respondents’ whose companies

are planning to evaluate, upgrade or

purchase a WCS, 68% will do so within

the next year and 65% will be buying

a brand new system. Notably, 59%

indicate that their WCS purchase is

an integral part of a larger automation

initiative, while only 38% will imple-

ment a WCS as a stand-alone project.

Most (62%) will be buying from a WCS

software provider, as opposed to a sys-

tems integrator (14%) or an equipment

manufacturer (10%).

Other software

A little more than a quarter of respon-

dents (26%) indicate they use asset

tracking software to manage the assets

used to move, store, secure, protect

and control inventory both within their

enterprise and throughout the supply

chain. The software is relatively new in

having it in operation for 10 years or less.

Asset tracking software had the fastest

rate of return on investment, according

to our readers—just 10 months.

Labor management software (LMS) is

currently used by 23% of respondents to

optimize workforce productivity through

comparative reporting of direct and indi-

rect labor use against both historic data

and engineered standards. Most systems

have been in place an average of six years,

with upgrades occurring every 2.3 years.

Users report a 10.8 month average return

on investment time.

The majority of those who plan

to implement a LMS expect to do so

within the next 6 to 12 months (57%),

modern

special report

Approximately how much will your company spend

on supply chain software for your operation including

license, integration and training in the next 12 months?

Source: Peerless Media Research Group

$2 million + 3%

$1-1.9 million 4%

$500,000 - $999,999 11%

$100,000 - $499,999 28%

Less than $100,000 54%

Average $ plan to spend: $397,000

Median $ plan to spend: $94,000

Which of the following software is in use in your

facility and what are your plans to evaluate, purchase

or upgrade in the next 24 months?

Source: Peerless Media Research Group

Supply chain management

and planning (SCMP) software 34%

16%

Warehouse management

systems (WMS) 60%

36%

Transportation management

software (TMS) 22%

16%

Asset tracking 26%

20%

Labor management software (LMS) 23%

15%

Slotting software 10%

Warehouse control systems (WCS)28%

19%

Yard management systems (YMS) 7%

None of these 14%

28%

In use

Plan to evaluate/

upgrade/purchase

MMH1106_SpecialReportSoftwareSurvey.indd 38 6/7/11 4:34 PM

mmh.com Modern Materials Handling / Ju n e 2011 39

followed by another 39% who antici-

pate doing the same within the next 24

months. Engineered labor standards—

established performance rates and

productivity goals based on the unique

characteristics and metrics of each

work assignment—are currently in use

by 27% of respondents with another

31% indicating an intent to implement

the same. However, only 38% have

adopted an employee payment program

tied to productivity improvements.

The last two areas we examined,

slotting optimization software and yard

management systems (YMS), had far

fewer respondents—corresponding to

their much lower rate of adoption.

Just 10% of respondents report the

use of slotting optimization software

to determine the best inventory stor-

age medium, picking methodology

and rotation frequency. Those who

answered indicated that 36% reslot

quarterly, 45% reslot every six months,

and 18% reslot once a year.

Only 7% of respondents indicate

that they currently use a YMS to

streamline scheduling of inbound and

outbound shipments through their

yard and docks. Of those, 45% had

only had their YMS in place for five

years or less. M

What are the key reasons your company is planning

to consider or buy warehouse management systems

(WMS) during the next 2 years?

Source: Peerless Media Research Group

* Mentions include: changes in warehouse design, replenishment management/e-commerce implementation

implementing an ERP system, add features and functionality/current system not very robust, lot tracking and

event billing purposes

Slotting

Inventory deployment

Labor management

Real-time control

Yard management

Upgrade of existing package

Other*

45%

30%

14%

32%

36%

20%

When your company purchases software, who do you

typically use to integrate the software installation?

Source: Peerless Media Research Group

Software

supplier

45%

In-house

person

74%

Systems

integrator

26%

Business

management

consulting firm

12%

Other

1%1%

Not sure

4%4%

www.interlakemecalux.com

AUTOMATED

WAREHOUSE

SYSTEMS

MMH1106_SpecialReportSoftwareSurvey.indd 39 6/7/11 4:34 PM

       out from lift

truck maintenance bays around the world: “Get me the

truck and I’ll x it.” But as companies try to do more

with less, lift trucks are too often compelled to stay on

the warehouse oor as long as possible, where they can

keep the product and the organization moving forward.

The historic tension between the needs of the truck and the

demands of the business frequently result in maintenance patterns

that lead to avoidable damage, over- or under-utilization, and wasted

parts, time and money.

“It’s a sword that’s not only double-edged, it’s serrated,” says Jim

Shephard, founder and president of Shephard’s Industrial Training

Systems, which specializes in the development and implementa-

tion of operator training programs and has trained more than 1.5

million operators. “It’s something that every company with lift

trucks wrestles with.”

However, Shephard argues, with careful planning, operational dis-

cipline, and perhaps the help of a dealer or other service provider,

most businesses can establish a lift truck maintenance program that

will increase productivity while optimizing eet expenses.

But many companies have yet to take the rst step.

“With many of the clients I’ve worked with over the past few years,

I’ve seen no plan at all,” says Shephard. “They’re basically running

reactive maintenance shops.”

Planned maintenance (PM), the routine oil and lter changes, might

be as far as a company’s maintenance planning goes, says Shephard.

Sometimes even PMs are a challenge. “Maintenance people are saying:

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‘The truck’s due for PM, now how do I

beg, borrow or steal it?’” says Shephard.

“They usually only get the truck after a

breakdown. Even then, they’re forced

to get it back onto the oor before the

full service is done,” he adds. “Before

long, that eet starts to show the atten-

tion you’ve put into it.”

According to Shephard, an effec-

tive maintenance program starts with

the lift truck operator, the person most

immediately aware of the needs of any

given truck.

“They are the rst line of defense,”

says Shephard. “No one else in that

operation is going to be as important as

the operator. They are the key.”

But although operators today are

better trained than ever, says Shephard,

skilled operators on bad equipment will

revert from good habits to bad ones.

Then equipment dollars are wasted,

training dollars are wasted, and compa-

nies end up with avoidable costs.

“You push one domino over, it will

knock the rest over,” says Shephard.

“The funny thing is that most compa-

nies put so much emphasis on produc-

ing a quality product, from design to

manufacture to packaging, then they go

and handle their materials with shoddy

equipment. It doesn’t make sense to

focus so much on the front end just to

get shrinkage on the back end.”

Shephard says maintenance is no

longer a last resort for trucks pushed

to the breaking point. Taking the long

view allows businesses to control day-

to-day expenses and operations while

monitoring the performance and value

of each piece of equipment. In this way,

the life span of each truck is neither

shortened nor needlessly extended.

“Before you cross that line, main-

tenance costs are an investment in

your assets,” says Shephard. “After you

cross that line, you’re just throwing

money away.”

KEEPING IT IN-HOUSE

According to Shephard, lift trucks are

not only important at the loading bay. “A

lift truck in a building will affect every

person in that building,” he says. “You

get shrinkage and the plant manager

hears about it. You get late shipments

and customer service hears about it.

You get avoidable costs and accounts

payable hears about it.”

Given the ripple effect a lift truck

can have on an operation, it might

seem surprising that their good health

is so rarely a priority. But there are sig-

nicant challenges to in-house mainte-

nance programs, according to Jim Gas-

kell, director of Global Insite Products

for Crown.

Below about 50 trucks to 70 trucks,

maintenance workers might spend only

some of their time actually servicing

trucks, with the rest of their day spent

on other facility needs. Beyond that

threshold, the eet will sustain dedi-

cated maintenance personnel. Manag-

ers might begin to make room for a ded-

icated maintenance bay, which might

naturally begin its life as an offshoot of

a battery room.

Then the maintenance bay might

begin stocking parts or consigning

a parts supply from a dealer. This is

where the problems begin. “Companies

must have the discipline to track hours

of labor and parts costs so they can

have an accurate sense of their main-

tenance costs,” says Gaskell. “That’s the

piece they’re most often missing.”

It can be hard to isolate labor hours

spent on trucks if maintenance work-

ers are also performing other facility

repairs. And parts management can

quickly become a cost quagmire. An

ideal practice might include a time card

for maintenance workers where they

could document X hours spent putting

X parts on X truck.

“One customer had tool carts in a

shop lled with $50,000 in parts in a

small area,” says Terry Flanagan, man-

ager of eet sales for Yale Materials

Handling Corp. “Someone was in the

habit of taking parts out of the packag-

ing before shelving them, and although

the mechanic knew where the parts

were, no one else did.”

“Do you know how many techs are

allowed to get their own parts at a deal-

ership?” asked Gaskell. “Zero. When a

Typical lift truck costs

Fuel &

Insurance

Disposition

Purchase

Costs

Maintenance

Operator Cost

Years

Dollars

End of

Economic Life

Total Costs

Maintenance Costs

Acquisition Costs

Source: Yale Materials Handling Corporation

In-house maintenance programs

should include careful documentation

of labor hours and parts costs.

Warehousing & DC: Fleet Maintenance

A speciAl supplement to modern mAteriAls hAndling

MMH1106_WDCLiftTruckSupp.indd 42 6/8/11 10:37 AM

DehncoQuarterDigial.indd 1 5/21/10 11:14:21 AM

S44 Ju n e 2011 / Modern MaterialS Handling mmh.com

user’s in-house technicians are allowed

to get their own parts, that’s how cus-

tomers end up with tens of thousands

of dollars in parts they don’t need and

hundreds of thousands of dollars in

parts they can’t track.”

In order to get things under control,

a company must rst perform a thor-

ough asset survey, documenting costs

and utilization. This simple rst step

can immediately reveal big problems,

like whether a company is using the

right trucks for the right job, whether

trucks are over- or under-utilized, or

whether there are other recurring prob-

lems with batteries, parts, operators,

etc. With this basic data in hand, a

company can begin to know whether to

repair, replace or retire each truck.

For many companies, data captured

manually can be helpful enough to

begin making decisions and improve-

ments. But technology can also help

collect detailed information to help

make long-term investments, develop

programs, and improve day-to-day

operations.

TECHNOLOGY’S ROLE

Gaskell shared a story about a manager

who saw an unused lift truck parked

in an odd corner of the warehouse.

He red it up, saw nothing immedi-

ately wrong, and drove the lift over to

the loading bay only to nd out it had

an oil leak, leaving an oil slick on the

loading bay.

Truck-mounted technology can now

allow managers to quickly assess which

trucks are down and why, saving time

that might have been wasted investigat-

ing on the warehouse oor. And while

the eet maintenance person might

only be concerned with the status of

the trucks, the same technology can

enable operator tracking as well, pro-

viding further assurances that the right

operator is using the right truck in the

right way.

“If you nd you’re using one truck at

3,000 hours per year and another truck

at 1,000 hours per year, you’ve got a

problem,” says Flanagan.

But while data can illustrate utiliza-

tion and efciency with more clarity, it

must be coupled with action.

“Today’s managers do not want more

data,” says Gaskell. “Instead they want

information that is delivered in a simple

format, that is easy to understand and

that can be quickly acted upon. This

way management can change opera-

tions before it’s too late.”

Data collection

might lead managers

on the path to make

better use of their

existing equipment, or

reveal that they have

been a bit too suc-

cessful at right-sizing

their eet.

“A eet that just

barely meets utiliza-

tion will not make it

into the shop,” says

Shephard. “They’ll

need them on the oor.

They’re hamstrung

to solve their mainte-

nance problems.”

Often, the pic-

ture that emerges is

a need for improve-

ments on an over-

whelming scale. If the

changes needed and

the resources available don’t add up,

a company might consider a mainte-

nance agreement with a dealer or other

service provider.

MAINTENANCE AGREEMENTS

Companies are increasingly relying on

contracted maintenance services in an

effort to control costs and make them

more predictable. Unlike many deal-

ers, in-house facilities often lack the

ongoing training to keep mechanics up

to date with rapidly changing lift truck

technology, says Shephard. A company

might also lack the perspective to know

when a facility’s maintenance costs are

in a good place when compared to other

sites or the industry average.

“Thirty years ago, each facility had

it’s own security department, main-

tenance department, they did every-

thing,” says Michael McKean, eet

management sales and marketing

manager for Toyota Material Handling.

“Companies have since focused on core

business and have outsourced all they

can. It’s driven the maintenance busi-

ness back to where it should be, which

is at the dealership.”

In recent years, more and more com-

panies are pursuing this option, says

Shephard. There are plenty of choices

for outsourced maintenance agree-

ments, but dealers are frequently best

prepared to offer a full range of services

and reporting tools. One reason is sim-

ple, says Shephard: No one knows the

trucks like the people who made them.

At one end of the maintenance

agreement spectrum, the company

need only grease the truck every so

often and perform pre-shift inspec-

tions, with a dealer handling all other

maintenance needs. The dealer might

run a full-time, on-site maintenance

bay, or make visits as needed. Some-

where in the middle of the spectrum, a

dealer might handle major repairs only,

and leave PMs and other routine main-

tenance to the company staff.

The key to eet maintenance, says

McKean, is the agreement between the

As lift truck technology rapidly changes,

ongoing training for technicians is essential.

“In the end, a company might find that unnecessary fleet

maintenance staff can be redirected to other areas of facility

maintenance, resulting in optimized resources instead of layoffs.”

– Michael McKean, eet management sales and

marketing manager, Toyota Material Handling

Warehousing & DC: Fleet Maintenance

A speciAl supplement to modern mAteriAls hAndling

MMH1106_WDCLiftTruckSupp.indd 44 6/8/11 10:37 AM

company and the maintenance service

provider. “It’s checks and balances,” he

says. “It can not only lock in business

for the dealer, but it also results in pre-

dictable costs for the company.”

Any good maintenance agreement

requires good communication, he says,

with a clear understanding of what the

customer needs and what the dealer

can offer. A good outsourced mainte-

nance proposal, according to Flana-

gan, should aim for at least 15% reduc-

tion in maintenance costs.

Following an asset survey, says Fla-

nagan, a dealer might confer with man-

agers to identify an appropriate core

 eet as well as a standby  eet. “So, if

the truck is down, you aren’t down,”

he adds. They might also identify a

swing  eet suitable for use in two or

more applications, says Flanagan. This

avoids the likelihood of a dedicated

 eet being over- or under-worked.

By becoming involved in all aspects

of  eet maintenance, a dealer agree-

ment can also allow a company to

bridge the natural gap between  eet

managers and staff managers. “Out-

sourcing in-house maintenance

requires time to understand what is

best for the company,” says McKean.

“In the end, a company might  nd that

unnecessary  eet maintenance staff

can be redirected to other areas of

facility maintenance, resulting in opti-

mized resources instead of layoffs.”

And instead of parts languishing

in a maintenance bay or disappearing

onto the warehouse  oor, the dealer

can assume responsibility for tracking

each and every item.

“They don’t get paid unless they

keep good records, whereas an in-

house program might not have such an

incentive,” says Gaskell.

According to Gaskell, the most

important thing to consider when

selecting a service provider is uptime,

not the cost of each repair.

“If I had 100% uptime, I’d gladly

pay twice as much for the service,”

says Gaskell. “That said, you also

need robust reporting to benchmark

company costs against industry

averages.”

Flanagan agrees. For companies

with sites across multiple states or

countries, how do you know what’s

world class? How do you benchmark

costs internally from site to site? You

might have a site that has a lower

cost per hour than the others, so you

decide to benchmark to that site. But

what if that cost is still above industry

average?

With a targeted goal and the sup-

port to reach it, companies can replace

waste and reactive maintenance with

con dence and ef cient resource

management.

“That’s long-term thinking,” says

McKean. “If you don’t have that men-

tality, that’s where a competitor will

come in and get that contract.” 

Josh Bond is the lift truck columnist for

the Supply Chain Group

mmh.com MODERN MATERIALS HANDLING / JU N E 2011 S45

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MMH1106_WDCLiftTruckSupp.indd 45 6/8/11 10:37 AM

46 Ju n e 2011 / Modern Materials Handling mmh.com

Capitol Conveyors Inc.

Big Ass Fans

Yellow Jacket® by the Big Ass Fan Company® is the new

portable (or mountable) fan that takes abuse and stays in

use. After 5 years in development, Yellow Jacket’s smashingly

durable design, quiet and efficient operation, large coverage

area, multiple mounting options, superior maneuverability

and adjustable speed settings make it worthy of the

Big Ass Fans name.

Yellow Jacket won’t crumble after a forklift love tap. How do

we know? Watch one of our engineers attempt to challenge

Yellow Jacket’s durability at www.bigassfans.com/yellowjacket.

Share your ideas for destruction here: www.canyoudestroyit.com.

Learn more:

877-244-3267

www.bigassfans.com/yellowjacket

info@bigassfans.com

Capitol Conveyors Inc., a full-service conveyor

manufacturing company, offers engineering, equip-

ment, installation, and commissioning for all your

conveyor needs. The CCI Motorized DriveRoll

Tower and Conveyor offers many benefits, includ-

ing its plug-n-convey design, zero-pressure zone-

controlled accumulation, reduced noise, low power

consumption, operation without compressed air,

and minimal cost for spare parts. The Tower comes

with uphill, downhill and reversible modes, ships

fully assembled, and can be pre-wired including the

power supplies.

The unit is controlled by 24-volt DC motorized

drive rollers with high torque drive rollers for uphill

and brake drive rollers for downhill. Customized

design is available. Each Tower is shipped from the

factory as a self-standing unit and can easily be

integrated with multiple types of equipment.

Capitol Conveyors, Inc.

28121 Scippo Creek Road, Circleville, OH 43113

Phone: 877-532-9070, Fax: 740-474-8068

www.CapitolConveyorsInc.com

MMH1106ProMatWrapUpADS.indd 46 6/8/11 10:56 AM

mmh.com Modern Materials Handling / Ju n e 2011 47

Dematic

Hyster

Smarter, Faster, Ergonomic

Order Fulfillment

RapidPick is the new high capacity goods-to-person order

fulfillment system from Dematic. Delivering split case

items to an operator, RapidPick allows pick rates of up to

1,000 line items per operator per hour. RapidPick consists

of a highly engineered operator workstation that quickly

rotates SKUs into and out of the station, enabling the

operator to efficiently pick items—offering a smarter,

faster, ergonomic order fulfillment solution. Smarter

because the operator stays in one place while items are

delivered to the pick station in precise sequence. Faster

because product for picking flows into the RapidPick

station smoothly and consistently, allowing your staff

to be highly utilized. Ergonomic because the workstation

is designed for sustained productivity and employee

comfort: no bending or reaching.

Experience the Dematic Difference.

Visit www.dematic.us or e-mail USInfo@dematic.com

for more information.

Hyster

Visit www.Hyster.com

for more information.

Introducing the completely redesigned Hyster®

B60ZHD and B80ZHD 6,000-pound and 8,000-

pound end riders. These trucks have been engi-

neered to take on the most demanding, heavy-

duty applications in a multitude of operating

conditions. To prove what they are made of, we

pushed these machines to the max, and the link-

age survived 1,000+ hours without lubrication.

The complete linkage system lifted a total of

310,000,000 pounds before requiring service of

any kind and our bushing wear was more than

three times better than that of the competition.

We deliver durability, productivity, operator com-

fort and ease of maintenance that exceeds the

industry’s highest standards.

MMH1106ProMatWrapUpADS.indd 47 6/8/11 10:56 AM

48 Ju n e 2011 / Modern Materials Handling mmh.com

Intelligrated

ID Label Inc.

Man-up or Man-down…

Hands down ID Label has the best warehouse labeling

and installation solutions.

 •PlasticSigns

 •Magnetic

 •1Dor2DBarcodes

 •ColorCodingfortieridentification

 •NationalInstallationServices

Intelligrated Real Time Solutions®

Trak3 xD™ and Trak3 xL™ Pick-to-Light

RealTimeSolutionsTrak3xDandTrak3xListhefirst

extendeddisplaypick-to-lightsystemtoofferdynamic

dual-shelfpickfaceandreplenishmentslottingcapability.

Idealfordenseflowrackpickingandputapplicationsor

generalmerchandiseoperationsthatrequiredynamic

slottingofawidevarietyofproductsizes,Trak3xD

andxLsystemsprovidemaximumSKUdensityand

replenishmentaccuracy.

Intelligrated

7901 Innovation Way

Mason, Ohio 45040

1-866-936-7300

www.intelligrated.com

ID Label Inc.

Salesmmh@idlabelinc.com

Toll-free: 800-541-8506 x100

425 Park Avenue

Lake Villa, IL 60046

Positive Feedback…Every Time

MMH1106ProMatWrapUpADS.indd 48 6/8/11 10:56 AM

mmh.com Modern Materials Handling / Ju n e 2011 49

Interlake Mecalux

Kenwood U.S.A.

Selective Pallet Rack • Drive-In/Drive Through

• Wide Span • Structural Rack • Boltless

Shelving • Push Back • Cantilever • Selecta-

Flo • SpinBlock • Movirack • Clasimat •

Clasimat Basic • Radio Shuttle • Unit Load

AS/RS • Mini Load AS/RS • MT0 • Easy WMS

we manufacture WAREHOUSE SOLUTIONS

www.interlakemecalux.com

Promat_WrapUp_052511.indd 1 5/26/2011 1:14:06 PM

We manufacture WAREHOUSE SOLUTIONS

Selective Pallet Rack • Drive-In/Drive Through • Wide Span •

Structural Rack • Boltless Shelving • Push Back • Cantilever

• Selecta-Flo • SpinBlock • Movirack • Clasimat • Clasimat

Basic • Radio Shuttle • Unit-Load AS/RS • Mini-Load AS/RS •

MT0 • Easy WMS

Selective Pallet Rack • Drive-In/Drive Through

• Wide Span • Structural Rack • Boltless

Shelving • Push Back • Cantilever • Selecta-

Flo • SpinBlock • Movirack • Clasimat •

Clasimat Basic • Radio Shuttle • Unit Load

AS/RS • Mini Load AS/RS • MT0 • Easy WMS

we manufacture WAREHOUSE SOLUTIONS

www.interlakemecalux.com

Promat_WrapUp_052511.indd 1 5/26/2011 1:14:06 PM

Interlake Mecalux

www.interlakemecalux.com

Reliable and affordable voice and data communications in the concrete

and steel of manufacturing and distribution facilities can be a challenge.

Kenwood two-way radios meet or exceed military standards for durability

and offer a wide range of choices, from simple, on-site communications

to complex systems requiring wide area coverage. The latest advantages

of digital communications come with the Kenwood NEXEDGE® line of

radios and custom systems, which can be integrated into IP networks,

used to link multiple sites and offer advanced data capabilities. For site

specific communications, affordable and tough ProTalk® radios are the

high-performance choice. All Kenwood radios feature renowned Kenwood

audio, voice and data features based on ever advancing R&D standards,

and are built to offer high performance communications in any setting.

Kenwood U.S.A. Corporation

Communication Sector

www.kenwoodusa.com

1-800-950-5005

MMH1106ProMatWrapUpADS.indd 49 6/8/11 10:56 AM

Efacec is a global corpora-

tion with 4,500 employees

around the world. Our Material

Handling Business Unit offers

automated warehouse solu-

tions including AS/RS, AGVs,

turnkey conveyor systems,

and also warehouse manage-

ment software (WMS). AS/RS

systems have been supplied to

handle products such as plastic

totes, cartons, pallets and even

13,000-pound rolls of paper.

With over 25 years of experience in material handling,

EFACEC has the capability to design and manufacture

products and systems to match our customer’s needs.

System Logistics ORBIS Corporation

Efacec Battery Watering Technologies

Battery Watering Technologies offers

a quick and safe method for filling

industrial and golf car batteries with

water. Maintaining batteries with a sin-

gle-point watering system eliminates

the risk of battery acid and vapors

harming workers or spilling over to

damage floors and equipment. There is

a growing awareness that extending the life of bat-

teries makes not only good business sense, but envi-

ronmental sense as well.

When batteries are maintained and properly

watered, they should last five years or longer. We’re

providing a better quality product that takes what

had been a 10-20 minute chore per industrial battery

to something that can be done in 20-30 seconds. Our

five-year warranty sets the standard for quality and

performance with our innovative product line.

Battery Watering

Technologies

6645 Holder Road

Clemmons, NC 27012

336-714-0448 or

877-522-5431

www.batterywatering.com

The leader in battery watering technology

Efacec USA, Inc.

2755 Northwoods Parkway

Norcross, GA 30071

770-446-8854

E-mail: usa.logistics@efacec.com

Website: www.efacecusa.com

ORBIS Corporation

1055 Corporate Center Drive

Oconomowoc, WI 53066

Toll Free: 800-999-8683

www.orbiscorporation.com

MODULA®. The Space

Saving Automated

Storage System

The MODULA® vertical

lift module is the solu-

tion to manage your pick-

ing and rapid retrieval

of parts, components,

semi-finished and finished

products while optimizing

space utilization. When

equipped with dual-level

tray delivery, available with both internal and exter-

nal picking bays, units can provide high picking

speeds by eliminating operator wait time. Contact us

today to learn more on how to increase productivity

and reduce costs. MODULA®. Your easy, efficient and

ergonomic solution.

System Logistics

888-233-6796

sales@systemlogistics.com

www.systemlogistics.com

At ProMat 2011, ORBIS

Corporation, North America’s

leading manufacturer of sus-

tainable reusable packaging

and an expert in supply chain

optimization, unveiled its new-

est reusable bulk containers,

the HDMC4845 BulkPak, avail-

able in two heights: 27 and 34 inches. The HDMC4845

BulkPak is designed to safely and securely utilize less

usable shipping space for containers, so companies are

able to increase the amount of product they can ship.

The containers have been engineered to allow greater uti-

lization of available space and to stack in a way that frees

up additional space in a standard 53-foot shipping trailer.

In addition to helping companies reduce their overall

environmental impact with reusable packaging, ORBIS

tracks and measures its own resource utilization to con-

tinuously conserve natural resources and reduce waste.

50 Ju n e 2011 / Modern Materials Handling mmh.com

MMH1106ProMatWrapUpADS.indd 50 6/8/11 10:56 AM

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 51

Overhead power and free conveyors

A new line of 4-inch overhead Friendly Dog Magic power and

free conveyors features a simpler design than comparable, stan-

dard models to reduce engineering and installation time. The

units use standard air pusher assemblies at switches and chain

transfers for accurate transfers that are easily incorporated into

any layout. Jervis B. Webb, a subsidiary of Daifuku, 248-553-

1000, www.jervisbwebb.com.

FOCUS ON

Overhead handling

mmh.com MODERN MATERIALS HANDLING / APRIL 2010 47

programmable optical sensors for safe operation near

pedestrians and in confined spaces. The AGVs follow a

self-adhesive magnetic tape for simple setup with no floor

modifications. Toyota Material Handling, 800-226-0009,

www.toyotaforklift.com.

Robotic pallet truck handles 8,000 pounds

The vision-guided GP8 robotic pallet truck frees skilled

employees by performing non-value-added work by auto-

mating pallet transport. After

an operator positions the

vehicle’s 96-inch long forks

under the pallet, the industrial

mobile robot transports pal-

lets to an assigned location,

automatically positions them,

and returns to the original

starting point—or other pre-

assigned location—for more

work. The vehicle handles up

to 8,000 pounds and stores

25 miles of learned routes.

AGVs

Your Complete Lifting

Solution

Visit www.positech.com

Taurus

Shown with Optional Pedestal Mount

SAM

Shown with Optional Pedestal Mount

Transfer Arm

ReactionArm

Shown with Optional Pedestal Mount

LodeArm

Shown with Optional Trolley Mount

vehicle travels at a maximum speed

of 3.5 miles per hour. Seegrid, 877-

733-4753, www.seegrid.com.

Roller forks handle

palletless loads

Using a patented roller fork mecha-

nism, the pallet-free automatic

guided vehicle eliminates the need

for pallets within a facility. The vehicle

handles loads on slip sheets and

offers stacking and push back rack

capability. It may also be used for pal-

let handling. The automated system

reduces labor costs, product damage

and operational costs. HK Systems,

262-860-6715, www.hksystems.com.

MMH100401ProdFocus_ID 47 4/8/2010 11:35:13 AM

Hoist offers infinitely

variable speed control

The DCS-Pro electric chain hoist allows

operators to handle and precisely

position critically sensitive loads with

ease. Features include an infinitely

variable speed control with soft starting

speeds of 3.15 inches/minute, a 1:200 control

ratio for gentle positioning and high-speed travel,

and automatic switchover to low speed prior to

reaching the upper/lower stop. To prevent load

sway, the hoist has integrated acceleration and

braking ramps. Offered standard for enhanced

safety and reliability, the hoists have operating

limit switches, a brake-coupling system to securely

hold loads, and speed-monitored slipping

clutch. Powered by a 24-volt control, the hoist’s

connections are simple to install. The gearbox,

brake and slipping clutch are maintenance free for

up to 10 years. Demag Cranes & Components,

440-248-2400, www.demagcranes.us.

MMH1106_FocusOn_Products.indd 51 6/8/11 10:08 AM

52 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

1-800-843-3625

www.advancelifts.com

RIDER LIFTS FOR MEZZANINES &

AUTOMATED MATERIAL LIFTS FOR MEZZANINES

񡑀INCREASE MEZZANINE UTILITY

񡑀SAFER LOADING & UNLOADING

񡑀FASTER LOADING & UNLOADING

񡑀COST EFFECTIVE

38 Oc t O b e r 2010 / MODERN MATERIALS HANDLING mmh.com

FOCUS ON

PALLETIZERS

LM MMH Template.indd 1 10/6/10 4:00 PM

54 Ju l y 2010 / MODERN MATERIALS HANDLING mmh.com

Lifts feature

galvanized

construction

For safe transfer

of loads from

truck bed to dock

without ramps

or inclines, Dura-

Dock loading-dock

lifts are offered.

The units come in

5,000- and 6,000-

pound capacities and feature galvanized,

corrosion-resistant base and legs. Rising

from grade level to a maximum height of

59 inches, the lift may be mounted in a

concrete pit. Platform sizes range from 6

x 8 feet to 8 x 12 feet. Features include a

weatherproof pushbutton control with 20

feet of coiled cord, a diamond-tread, steel

platform with beveled toe-guards, and

removable steel handrails. Southworth

Products, 207-878-0700, www.

southworthproducts.com.

Control dock environment

with sliding softwalls

Creating better environmental control,

flexible sliding softwalls slide open or

closed with minimal effort to create sepa-

rate zones in loading dock staging areas.

The curtain walls also improve cleanli-

ness, increase security and contain odors,

fumes, dust or noise. Made of heavy-duty

industrial vinyl, the units are custom fab-

ricated for each application, and can be

reconfigured as facility layout or environ-

mental control needs change. Mountable

to the existing ceiling structure, a heavy-

duty track and trolley system supports

the walls. Zoneworks, 800-553-4834,

www.zoneworks.com.

Centralized dock power

source lowers building costs

To cut the complexities and costs of

new loading dock installations, the

CentraPower unit reduces the number

of hydraulic pumps, disconnects and

associated power feeds by a factor of

10 to 1. Locating

the hydraulic power

source in a conve-

nient location inside

the building yields

cleaner access, sim-

plified maintenance

and lower costs. The

system features a

full backup pump

and motor system to

ensure continuous up-time. Systems

Inc., 800-643-5424, www.docksys-

temsinc.com.

Cabinet for lean manufacturing

For 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. Stanley Vidmar, 800-

523-9462, www.stanleyvidmar.com, Booth 2532.

44 MARCH 2010 / MODERN MATERIALS HANDLING mmh.com

zAbuse Resistant Belts work where others fail.

zSuper Strong Joints are virtually unbreakable.

zHigh Tension Belts move heavier loads.

zSuper Red Belts double conveyor capacity.

Dura-Belt

800-770-2358 614-777-0295

Fax: 614-777-9448 www.durabelt.com

Better than

Lifetime

Warranty

Longer Lasting Belts

New Split Line-shaft Spools

High precision. Reasonable price.

Easy to install. Zero downtime.

Can be locked to shaft. Eliminates

need for keyed spools and shafts.

MAKE ROOM

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 activity

Executives, 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.

NA 2010

Cleveland

Vertical storage system

Featuring 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. Vidir Machine, 800-210-0141, www.vidir.

com, Booth 3018.

Treatment prevents mold growth on pallets

E-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. X-Mold,

866-581-6653, www.xmold.net, Booth 625.

MMH100301ShowProds_ID.indd 44 3/10/2010 3:49:09 PM

FOCUS ON

Dock Equipment

Voice+Laser driverless vehicles have

industrial grade laser guidance and

incorporate voice-directed picking,

leaving operators with their hands

free to maximize case picking pro-

ductivity. At the start of an order,

the truck delivers a new pallet to the

picker. Then, it automatically moves

with the voice-equipped picker as

they verbally confirm picks, and

transports the completed pallet to

shipping while the next truck brings

a new pallet to the picker. During

peak periods, pickers with manual

pallet trucks can work in conjunction

with the system to handle additional

throughput. As requirements change,

routing plans can be updated and

additional vehicles can be added or

transferred between sites. Dematic,

877-725-7500, www.dematic.us.

Low-cost AGVs handle up to

4,000 pounds

Capable of maneuvering and tow-

ing loads throughout a production

space, a series of low-cost automatic

guided vehicle systems can be con-

trolled with traffic control naviga-

tion software. The vehicles come in

capacities ranging from 500 pounds

to 4,000 pounds, making them

ideal for handling smaller loads and

increased volumes without additional

staff. Features include multiple path

programming, a retractable towing

pin, remote communication, and

Driverless trucks with voice directed picking

46 APRIL 2010 / MODERN MATERIALS HANDLING mmh.com

AGVs

MMH100401ProdFocus_ID 46 4/8/2010 11:34:55 AM

MMH_1007_Products.indd 54 7/6/10 1:56 PM

Floor-level palletizer with extended accumulation table

Combining the economy and accessibility of a floor-level palletizer with speeds associ-

ated with high-level machines, the 72AE palletizer incorporates an extended accumula-

tion table that allows continuous layer forming during transfer and stacking. This feature

increases the volume to more than 35 units per minute. It also includes energy-efficient

electric motors, quiet operation and pre-programmable layer patterns and pallet con-

figurations for easy startup and control. The unit can palletize cases, trays, bags or totes.

Automatic changeover is directed by the operator touch-screen panel. For flexibility,

intelligent control accepts new or modified pallet, layer and product configurations from

authorized personnel, with all operating parameters independently adjustable. A-B-C

Packaging Machine, 800-237-5975, www.abcpackaging.com.

Energy-efficient workstation

The electric workstation lift for palletizing offers

quiet, energy-efficient operation. The area

beneath is large and open for easy straddle

stacker access to the platform. For easy main-

tenance, standard 115-volt power units are rear

mounted for access when the lift is in the down

position. The lifts are offered as an alternative to

pneumatic and hydraulic powered solutions for

applications where air is not easily available and

hydraulic fluids cannot be tolerated. Advance

Lifts, 800-843-3625, www.advancelifts.com.

Robot works in tight spaces,

delivers 20 cycles per minute

Delivering speeds up to 20 cycles per minute,

the EC-171 high-speed robotic palletizer is

equipped with a built-in collision detection

system. Incorporating a large working enve-

lope with small rotation radius and energy

efficiency, the robot works in tight space con-

strictions at a high rate of throughput. A 10.5-

inch color touch-screen is included for human

interface control (no laptop required). The

system offers onboard diagnostics, advanced

programming platform, and up to 400 different pre-programmed recipes.

American-Newlong, 317-787-9421, www.american-newlong.com.

MMH1010_FocusOn_Prod.indd 38 10/12/10 1:59 PM

Lightweight gantry crane

ideal for localized lifting

Made from lightweight, extruded alu-

minum for easy lifting, a new, portable

gantry crane can be used for localized

lifting anywhere in a facility. Cost-effective

FOCUS ON

Overhead handling

for use in areas where lifting equipment

is needed infrequently—including over

machines, for maintenance or to pull

product—the crane easily collapses down

when not in use for compact storage. The

unit lifts capacities from 250 pounds to 2

tons. Adjustable with

standard spans up to

20 feet, the crane’s

height under the

boom is adjustable

from 7 to 12 feet.

Gorbel, 800-821-

0086, www.gorbel.

com.

Hoist can be configured for

multiple uses

Offering longer lifts and greater horse-

power, the Terminator T60 hoist reaches

higher speeds. It lifts up to 50 tons and

is powered by a 60-horsepower motor.

The hoist can be combined in top running

double girder, monorail or base mount

styles and works in conjunction with the

supplier’s line of end trucks and custom

controls. Ace World Companies, 800-

431-4223, www.aceworldcompanies.

com.

MMH1106_FocusOn_Products.indd 52 6/8/11 10:08 AM

Mobile straddle crane

Intended for indoor or outdoor use, the

mobile, telescopic mast straddle crane

carries loads up to 50,000 pounds—

including gen-packs and 20-foot shipping

containers—through a 12 x 12 foot over-

head door opening. The crane straddles

a flat bed or

a semi truck

and lifts the

load up to

120 inches.

Hydraulically

operated,

the crane

features four

synchronized

telescopic

masts for

level, uni-

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 53

For More Information, Call:

877-532-9070

Need a Single Source

Solutions Provider for

Your Conveyor Needs?

Talk to one of

our Sales Engineers

and request a FREE quote

for your next project!

Many conveyor manufacturers typically

only make certain types of conveyors.

At Capitol Conveyors, Inc. we know

one size doesn’t ﬁt all, that’s why we’re

a full service, custom manufacturer

of many different types of conveyors,

including specials.

We also offer complete solutions that

include systems engineering, equipment,

installation and commissioning – all

with fast, ﬂexible and efﬁcient

response times.

• Motorized DriveRoller

• Lineshaft

• Belt Conveyors

• Belt Driven Live Roller

• Chain Driven Live Roller

• Gravity

• Towers

• In Motion Weighing

• Automated Print & Apply

Line of electric chain hoists

lifts up to 10 tons

Offered in capacities from a half ton to

10 tons, a line of electric chain hoists can

be specified with either single-speed

or inverter control. The hoists include a

dual braking system featuring a disc type

motor brake that works with a mechanical

load brake. Other features include upper

and lower limit switches, overload alert,

push-button control and chain container.

ACCO Material Handling Solutions, 800-

967-7333, www.accolifting.com.

form lifting and positioning. The hydraulic

cylinders, their plumbing and control

valves are completely enclosed and pro-

tected for long life. Uniform level lifting is

synchronized by precision-built hydraulic

flow dividers that zero in automatically

each time the unit is fully lowered. The

crane is electrically powered by a 440-

volt, three-phase motor with a propane,

gasoline or diesel engine offered as

options. Air Technical Industries, 440-

951-5191, www.airtechnical.com.

MMH1106_FocusOn_Products.indd 53 6/8/11 10:08 AM

54 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

Direct electric overhead

traveling cranes with

remote control

For safe, efficient control of electric

overhead traveling cranes, the LRC-M1

remote control directs up to four motions

with two ergonomic, multi-axis joystick

controllers. The trolley/hoist selector,

two aux push buttons and toggles are

mounted on an impact-resistant housing.

To minimize spares and transfer keys to

other controllers—for increased safety,

flexibility and streamlined workflow—the

system uses a proprietary RFID configura-

tion. Other remote-controlled cranes can

be standardized to the same system for

operational efficiency. Cattron Group,

724-962-3571, www.cattrongroup.com.

• Easy installation

• Modular design

• Superior load positioning

• 5-year warranties

WITH GORBEL WORK STATION

CRANES, YOU CAN HAVE IT ALL.

GORBEL, INC.

585.924.6262

info@gorbel.com

❑

✔

Better

Safer

More Productive

800.821.0086 •www.gorbel.com

Motorized lifter

automatically

transforms to handle

coils or pallets

For lifting of eye-horizontal coils and

palletized vertical coils, a motor-

ized coil/pallet lifter includes fork

assemblies and lifting saddles. The

forks and lifting pads are motorized

to permit on-the-fly changeover or

for use with a cab-operated crane.

When lifting coils on pallets, motor-

ized coil restrictors lower to prevent

shifting. Sensors detect the type of

load to be lifted to prevent open-

ing of the legs, while other sensors

and indicator lights aid with load

alignment. The lifter’s capacity for

palletized coils is 33,000 pounds

and increases to 100,000 pounds

for eye-horizontal coils. Bushman

AvonTec, 800-338-7810, www.

bushmanavontec.com.

FOCUS ON

Overhead handling

Controller for magnet

crane operations

Providing precise operation of industrial

lifting magnet cranes, the MagnePulse

digital magnet control is a microproces-

sor-based, solid-state, DC-to-DC package.

The system allows an operator to enable

up to four unique magnets to match

individual load requirements. This func-

tionality reduces lifting current require-

ments while saving energy, lengthening

magnet life and increasing average lift

capacity. Ideal for retrofit applications,

the crane uses existing operator controls

and connections and is packaged with a

customized control panel to match unique

specifications. Magnetek, 800-288-8178,

www.magnetekmh.com.

MMH1106_FocusOn_Products.indd 54 6/8/11 10:08 AM

mmh.com

For more than 65 years, RIDG-U-RAK

has been the innovative leader in

storage rack design and production.

Whether you need replacement

beams or a storage system covering

30 acres of warehouse space,

RIDG-U-RAK is the name to trust.

the name to trust!

...

Toll Free: 866-479-7225

www.ridgurak.com

Selective Pallet Rack • Drive-In • Push Back • Flow

• Pick Modules • Cantilever • Stacker Cranes •

Roll-Out Shelving • Seismic Base Isolation

NEW!

Full Line

Selection

Guide

Trust RIDG-U-RAK with your

next project

• One of the largest rack

manufacturers

• Capacity in excess of 60,000 tons

per year

• Project management and

installation services

• Full array of storage

system solutions

• Unparalleled innovation,

design and application

experience

Lift four drums at one time

The Parrot-Beak L4CB crane-hoist mounted unit provides an automatic, mechanical way

to handle conventional rimmed steel, plastic and fiber drums. Capable of lifting up to

2,000 pounds per drum (for 8,000 pounds total capacity), the drum handler offers work-

er safety, drum protection, unitized handling and pallet change-out capabilities. The

device can lift a group of four drums made of different materials at one time, provided

the drum heights are within 1 inch of each other. Fork and carriage-mount models are

also offered. Liftomatic Material Handling, 800-837-6540, www.liftomatic.com.

Overhead transport device delivers

items between facility levels

Comprised of vehicles that travel overhead at speeds up to

722 feet per minute, the Sky RAV overhead hoist transport

product line includes five models, including thin, lightweight

and medium-load handlers. The hoists may be used for

transport between processes, automatic restocking to a

picking shelf, or sorting. The vehicles travel vertically at 45

degree angles to accommodate multi-level facilities, while

keeping goods in a horizontal position. For further custom-

ization, the unit can be equipped with a roller conveyor

or a gripper to accommodate various load sizes. Murata

Machinery, 704-394-6900, www.muratec-usa.com.

MMH1106_FocusOn_Products.indd 55 6/8/11 10:08 AM

56 JU N E 2011 / MODERN MATERIALS HANDLING mmh.com

Pneumatic-powered air

manipulator lifts 940 pounds

Using pneumatic

power to provide

responsiveness and

enhanced maneuver-

ability in handling

loads up to 940

pounds, the Simple Air

Manipulator’s lift cylin-

der uses compressed

air for vertical lifting

and positioning. Its

end-of-arm rotating

axis has up to 18,000

inch-pounds of end-of-

arm moment loading

and 360-degree rota-

tion, while pantograph

operation allows for a rectangular working window. When fully

side-loaded, the end-effector mounting surface deflects less than

2 degrees. Features include an operator-controlled pistol grip

metering valve for vertical lift (ergonomic twist grip controller

800.290.5460 x136

mmh

@theYGSgroup.com

The YGS Group is the authorized provider of custom

reprint products from Modern Materials Handling

magazine.

Place your press directly in the

hands of your customers and

prospects with custom reprints

from Modern Materials Handling

magazine.

Event Collateral

Media Kits

Direct Mail

Online Marketing

Recruiting Packages

Presentations

Develop greater

brand awareness and

showcase your featured

editorial from this

industry-respected

publication.

The Apparel Group:

Dressed for distribution

success Page 18

SPECIAL REPORT

Top 20 SCM

providers 26

EQUIPMENT REPORT

Green unitizing

practices 30

INFORMATION MANAGEMENT

Five trends in WMS 34

Kirk Longo, vice president

of supply chain, The

Apparel Group

mmh.com

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

July 2010

Special corporate

profile issue

FOCUS ON

Overhead handling

optional), precision bearings that minimize movement resistance

for enhanced ergonomics, and floor or ceiling mount capability

that doesn’t require arm disassembly. Positech, 800-

831-6026, www.positech.com.

Magnetic plate handling

systems include on-board

battery power supply

Using patented, electrically controlled permanent

lifting magnets, a series of magnetic plate handling

systems are independently powered by a 24-volt DC

wet cell battery, eliminating the need for a power

supply cable reel to be located on the hoist/crane.

For operator safety, the system includes indicator

lights to show that each magnet has attached to the

load at 100% strength. Radio controllable, the system

will not drop a suspended load, even in the event

of a control operation error. The magnet controls can be inte-

grated with supporting crane radio controls and do not require

a battery backup. Permadur Industries, 800-392-0146, www.

permadur.com.

MMH1106_FocusOn_Products.indd 56 6/8/11 10:08 AM

mmh.com MODERN MATERIALS HANDLING / Ju n e 2011 57

Portable aluminum gantry crane

Porta-Gantry portable, aluminum gantry style cranes feature durable construction in

a lightweight, modular assembly to handle up to 5-ton loads. The device provides

quick and easy setup and breakdown for movement between workstations. The crane

requires only four bolts for

assembly, then collapses

and packs flat for shipping

and storage. For versatility,

the crane includes locking

caster wheels and manual

height and width adjustments.

Thern, 507-454-2996, www.

thern.com.

www.interlakemecalux.com

WAREHOUSE

STORAGE

SOLUTIONS

classiﬁed/recruitment

To advertise, or for

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please contact:

Jennifer Drevline,

847-223-5225, ext. 11,

jenniferd@caseyreps.com

Monitoring Device

LABEL HOLDERS

Small Investment

BIG RETURN!

800.242.3919

www.aignerindex.com

info@aignerindex.com

Label Holders

MMH1106_FocusOn_Products.indd 57 6/8/11 10:08 AM

modern 60 Seconds

with...

Mark Longacre

JBT Corp.

TITLE: Chair, AGVS industry group,

MHIA; Marketing Manager, JBT Corp.

LOCATION: Chalfont, Pa.

EXPERIENCE: Eleven years in the

materials handling industry. Chair of

the AGVS industry group, 2+ years.

PRIMARY FOCUS: As chair of the

AGVS industry group, encouraging

new members, marketing the industry

group and increasing awareness of

AGVs in manufacturing and ware-

house applications.

Modern: There have been a lot of

changes in your industry. From your

perspective, what is an automatic

guided vehicle today?

Longacre: We define an AGV as a

computer-controlled mobile robot

used to move materials around a

facility. Inherent in the definition is

that it’s unmanned. The way they look,

what they can do, and how easy they

are to use has changed, but the base

definition has not changed as long

as I have been in the industry. What

is different about today’s AGVs is

that they are more scalable and more

flexible than vehicles of the past.

Modern: What’s driving the

demand for AGVs?

Longacre: There is an entirely new

set of markets and applications

opening up for AGVs. The first

adopters were the automotive

industry and heavy manufacturing.

Today, we’re seeing strong adoption

in other industries, such as food

and beverage. More importantly,

manufacturers that have already

optimized their manufacturing

processes are now looking at

distribution applications for AGVs.

Modern: Why distribution?

Longacre: It’s the same justification

as for manufacturing: a reduction

of labor costs, reduction in damage

and increased productivity. In

distribution, AGVs can support

goods-to-person distribution

processes. They can support

replenishment processes. They can

deliver empty pallets to a pick zone

or take away empty or full pallets.

There are a number of potential

applications and we’ve only

scratched the surface.

Modern: What do you make of the lift

truck suppliers developing AGVs?

Longacre: In some respects, this is

history repeating itself. There were a

number of lift truck OEMs who entered

and then exited the business 10 or 15

years ago. At the same time, we may

see the emergence of a new market.

We may see a segment of end users

that need very customized vehicle.

That’s the traditional AGV. And we may

see a segment of the market that can

use a much more standard product like

what the lift truck manufacturers will

offer. It’s a very dynamic and exciting

time for the industry. M

Jeff Fusco/Getty Images

58 Ju n e 2011 / MODERN MATERIALS HANDLING mmh.com

MMH1106_60Seconds.indd 58 6/7/11 2:55 PM

800.290.5460 x136 I

mmh

@theYGSgroup.com

The YGS Group is the authorized provider of custom

reprint products from Modern Materials Handling magazine.

Place your press directly in the

hands of your customers and

prospects with custom reprints from

Modern Materials Handling magazine.Event Collateral

Media Kits

Direct Mail

Online Marketing

Recruiting Packages

Presentations

Develop greater

brand awareness and

showcase your featured

editorial from this

industry-respected

publication.

The Apparel Group:

Dressed for distribution

success Page 18

SPECIAL REPORT

Top 20 SCM

providers 26

EQUIPMENT REPORT

Green unitizing

practices 30

INFORMATION MANAGEMENT

Five trends in WMS 34

Kirk Longo, vice president

of supply chain, The

Apparel Group

mmh.com

PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING

July 2010

Special corporate

profile issue

MMH0511_ads.indd 41 5/9/11 9:41 AM

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Modern Materials Handling June 2011 LEGENDARY PERFORMANCE P4T Mmh 11 06

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