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1. PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
mmh.com
®
March 2013
THE BIG PICTURE
Dock to dock
Little things that make
a big difference 16
SPECIAL REPORT
Industry Outlook/
Equipment Survey 24
EQUIPMENT REPORT
Carts and casters:
Business in motion 32
ProM
A looat 2013:
at thek back
sh
36 ow
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3. UP FRONT BREAKING NEWS YOU SHOULD KNOW
Automate 2013 reaches a related trade shows.”
It’s clear that the message that
record number of attendees automation is the best way to
become a stronger global competitor
AUTOMATE 2013, held Automation, the primary sponsor is resonating with companies in virtu-
Jan. 21-24 at Chicago’s of the show. “All of our numbers ally every industry, said Burnstein.
McCormick Place, was were up sharply, including Robot sales set a record in 2012, the
attended by a record total exhibitors (+17%), show Automate 2013 show was a success,
10,975 attendees attendees (+62%) and confer- and Bernstein expects these trends
from across the United ence participants (+10%). Our to continue as the manufacturing
States and 55 countries. post-show survey indicates that resurgence in the United States gains
“Automate 2013 Automate is becoming the primary an even stronger foothold. “We
exceeded all of our expecta- trade show in the field for many believe this will lead to an expanded
tions,” said Jeff Burnstein, president people, as about 50% of attendees Automate event when it is next held
of the Association for Advancing do not attend any other automation in 2015,” he added.
RPA launches connected Dematic and Vocollect expand
community initiative; seeks relationship to global level
industry input DEMATIC, A SUPPLIER of systems
The Reusable Packaging Association (RPA) is seek- for the factory, warehouse and dis-
ing input from supply chain professionals to help tribution center, has announced the
mold its new virtual reusable packaging forum, expansion and strengthening of its
called Connected Community. When launched, relationship with Vocollect, a leader
the community will provide a forum for sharing in voice solutions for mobile work-
new ideas and practical real world solutions for ers and a business unit of Intermec,
implementing and maximizing reusable transport packag- through a new global partnership.
ing systems into the supply chain. The goal of the commu- Vocollect solutions integrate with Dematic’s
nity is to virtually and effortlessly connect people looking software platform for seamless, consistent applica-
to either source or sell a reusable packaging product or tion throughout the entire warehouse operations.
service, and propel the adoption of reusable packaging Collaborating in this way at the global level, said
solutions as a preferred solution for transporting products company officials, helps ensure reliable support and
in a B-to-B supply chain. The Connected Community will repeatable results regardless of location while greatly
available on the RPA Web site (reusables.org). improving the ability to make real-time decisions,
“The findings from the survey will shape the founda- leading to increased distribution and fulfillment capa-
tion of the online community so we are seeking input from bility while lowering costs.
a broad base of supply chain professionals,” said Jerry “Leveraging knowledge captured from the ware-
Welcome, RPA president. “Industry input and direction will house or DC is important to the supply chain,” said
be critical to building a successful and useful online com- Robert Nilsson, Dematic vice president and general
munity for the reusable industry.” manager of software and supply chain intelligence.
Virginia governor announces
Commonwealth Center for costs, accelerate new discoveries and deliver transfor-
mative results to the technology, transportation, human
Advanced Logistics Systems and other systems that enable logistics.
Governor Bob McDonnell announced the formation “Virginia’s universities represent a powerful economic
of Virginia’s newest collaboration between industry development engine for the Commonwealth, especially
and Virginia universities: the Commonwealth when they come together in collaborative support of
Center for Advanced Logistics Systems (CCALS). industry objectives,” said Governor McDonnell. “CCALS
Modeled after the successful Commonwealth capitalizes on an emerging logistics hub in central Virginia
Center for Advanced Manufacturing (CCAM), that includes Fort Lee and a transportation infrastructure
CCALS offers businesses and government agencies that connects to the world. Breakthrough research at
with significant logistics operations a new, unique CCALS will raise the region’s profile further, bringing new
and collaborative R&D method that promises to cut businesses, new jobs and new opportunities.”
mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 3
7. ®®
THIS MONTH IN MODERN
EDITORIAL OFFICES
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111 Speen Street, Suite 200 MICHAEL LEVANS
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Michael Levans
Michael Levans
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Bob Trebilcock
Bob Trebilcock
Little things that make
EEXECUTIVEEEDITOR
XECUTIVE DITOR
robert.trebilcock@myfairpoint.net
robert.trebilcock@myfairpoint.net a big difference
Noël P. Bodenburg
Noël P. Bodenburg
EEXECUTIVEMANAGING EEDITOR
XECUTIVE MANAGING DITOR
npbodenburg@peerlessmedia.com
npbodenburg@peerlessmedia.com
W
hile many of us are still buzzing vital pieces of the productivity equation,
Josh Bond
Josh Bond
ASSOCIATE EEDITOR
ASSOCIATE DITOR from one of the busiest ProMat associate editor Josh Bond gives readers
jbond@peerlessmedia.com
jbond@peerlessmedia.com events in recent memory, this a comprehensive snapshot of the state of
Sara Pearson Specter
Sara Pearson Specter month in Modern we pull our focus in a bit carts and casters (page 32) and explains
EEDITORAT LLARGE
DITOR AT ARGE
and concentrate on the little things that are where the perception of carts as a “neces-
sara@saraspecter.com
sara@saraspecter.com
making a big difference inside materials sary evil” to keep product moving inside
Roberto Michel
Roberto Michel handling operations—especially in light of a facility is changing. The heavy, noisy and
EEDITORAT LLARGE
DITOR AT ARGE
robertomichel@cox.net
robertomichel@new.rr.com the increasing adoption of high-speed order unwieldy cart, says Bond, has evolved into
fulfillment systems. a “cart system” designed from the casters
Jeff Berman
Jeff Berman
GROUP NEWS EEDITOR
GROUP NEWS DITOR For example, in executive editor Bob Tre- up to optimize material flow through with as
jberman@peerlessmedia.com
jberman@peerlessmedia.com bilcocks’s Big Picture—the latest in a series much comfort to the user as possible.
Mike Roach of articles that explores the vital role materi- “The concept of putting everything on
Mike Roach
CREATIVE DIRECTOR
CREATIVE DIRECTOR als handling plays in business—he explains wheels is an apt metaphor for the flexibility
mroach@peerlessmedia.com
mroach@peerlessmedia.com that as sophisticated automation is taking demanded by today’s operations,” says
Wendy DelCampo
Wendy DelCampo operations to new heights of efficiency and Bond. “By empowering the workers and
ART DIRECTOR
ART DIRECTOR
wdelcampo@peerlessmedia.com productivity, it’s more important than ever to managers on the front lines to adjust work
wdelcampo@peerlessmedia.com
cure the common bottlenecks often found cells and react to changing conditions on
Daniel Guidera
Daniel Guidera
ILLUSTRATION inside operations. the fly, carts and casters have become es-
ILLUSTRATION
daniel@danielguidera.com
daniel@danielguidera.com Starting on page 16, Trebilcock focuses sential to the mobility of product, people
the microscope on the growing importance and processes.”
Brian Ceraolo
Brian Ceraolo
GROUP PUBLISHER
of powered mobile workstations in receiv- Rounding out this month’s theme, con-
GROUP PUBLISHER
bceraolo@peerlessmedia.com ing and quality control; capturing cube and tributing editor Maida Napolitano revisits
bceraolo@peerlessmedia.com
PEERLESS MEDIA, LLC weight early in the process; centralizing eight fundamental guidelines to help man-
PEERLESS MEDIA, LLC
www.peerlessmedia.com packing and labeling; automating the pack- agers improve inventory management. To
www.peerlessmedia.com
ing process; procuring proper dock equip- do this, she’s gathered six inventory man-
Kenneth Moyes
Kenneth Moyes ment; and streamlining loading and unload- agement experts with a combined 80 years
PPRESIDENTAND CEO
RESIDENT AND CEO
EH PPUBLISHING,INC. .
ing processes. of experience inside the four walls.
EH UBLISHING, INC
“Over the past few months we’ve con- “I picked this panel because I knew they
Brian Ceraolo
Brian Ceraolo
PPUBLISHERAND
UBLISHER AND
centrated on some impressive high-speed would get back to basics and review the
EEXECUTIVEVICE PPRESIDENT
XECUTIVE VICE RESIDENT order fulfillment engines that are driving critical strategies some operations may
PPEERLESSMEDIA, ,LLC
EERLESS MEDIA LLC
the business strategy of some of today’s have neglected as they raced to adopt
MAGAZINE SUBSCRIPTIONS
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On the theme of often overlooked yet of a reality.”
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mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 7
9. Follow
Modern Online
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MANUFACTURING REPORT
Women could be key to filling the
manufacturing talent gap
SURVEY RESULTS HIGHLIGHT PERCEPTIONS OF “The survey results didn’t neces-
MANUFACTURING CAREERS, WHERE WOMEN MAKE UP sarily surprise me,” said Wilkins. “We
JUST 24.8% OF THE WORKFORCE. have research on the general percep-
tion of manufacturing among the
BY JOSH BOND, ASSOCIATE EDITOR American public and we know the
stereotypes are out there. We know
EVEN AS MANUFACTURING enjoys on-one interviews with more than a that people love manufacturing and
a resurgence in the United States, dozen women. According to Jacey think it’s great, but they aren’t going
companies are facing a critical talent Wilkins, director of communications into it, and they’re not going to en-
shortfall. According to a recent sur- for the Manufacturing Institute, the courage their kids to go into it.”
vey, one of the best ways to address study is part of a three-part initiative That said, some of the recent
the talent gap is to improve percep- to assess and improve the role of survey’s research presented interest-
tions of the industry as a female- women in manufacturing. The three ing contrasts to past research. The
friendly workplace. Nearly 80% of parts include research, recognition surveyed women in manufacturing
survey respondents believe manu- and leadership, where recognized were more likely to recommend
facturers can improve their efforts women become ambassadors in the industry to their sons than their
to recruit women, and 51% believe their communities advocating for the daughters, but according to general
the main driver on women’s under- next generation of female industry public research, more mothers than
representation is the perception of a employees. fathers are likely to recommend
male-favored culture. While manufacturing jobs to
women make up 46% of the children of either sex.
total U.S. labor force, they Women in manufac-
account for just 24.8% of the turing reported compen-
durable goods manufacturing sation and opportunities
workforce. for challenging assign-
These are among the find- ments as the top two at-
ings of a study conducted by tributes that make manu-
global research firm Deloitte facturing an attractive
on behalf of the Manufac- career path. These align
turing Institute, the educa- nicely with the desires of
tion and research affiliate of many young workers, but
the National Association of a disconnect persists.
Manufacturers. The survey “There is a perception
reached more than 620 that these are routinized,
women in manufacturing, mindless assembly line
across all functional roles and jobs, but that is begin-
levels, and included one- ning to change,” Wilkins
mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 9
10. said. “We, as an industry, need to a global war for jobs, and if manufactur- WOMEN IN MANUFACTURING
address this head-on.” ers don’t attract the best and brightest,
As many as 600,000 manufactur- we will not be able to build a diverse STEP Award winners
ing jobs remain unfilled and 70% of workforce,” Wilkins said. “No big prob- announced
manufacturing companies report lems were ever solved by a room full
experiencing a moderate to severe of people with the same background, IN ADVANCE OF March’s Women’s
talent shortage. “The United States is in experience and perspectives.” History Month, the Manufacturing
Institute and its STEP Ahead initiative
partners recognized 122 recipients
of the STEP Awards at a reception in
Washington, D.C., on February 5. The
institute partnered with Deloitte, Uni-
versity of Phoenix, and the Society of
Manufacturing Engineers on the STEP
Ahead initiative (women in Science,
Technology, Engineering and Produc-
tion), which was launched to examine
and promote the role of women in the
manufacturing industry through recog-
nition, research, and education/leader-
ship. It also highlights best practices
for attracting, advancing and retaining
strong female talent. The STEP awards
recognize women at all levels of a
manufacturing organization from the
factory floor to the C-suite.
“These 122 women are the faces
of exciting careers in manufacturing,”
said Jennifer McNelly, president of
the The Manufacturing Institute. “We
chose to honor these women because
they each made significant achieve-
ments in manufacturing through posi-
tive impact on their company and the
industry as a whole.”
“The STEP Ahead initiative was
founded to change perceptions of
the manufacturing industry and create
new opportunities for women in the
sector,” said Latondra Newton, group
vice president at Toyota Motor North
America, and chairwoman of the STEP
STEP Award honorees received standing
ovation.
10 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
11. Ahead initiative. “This initiative is the Chain Management Certificate, to programs at TCU provide supply
call for action to transform the face optimize on-the-job experience. chain professionals with the vision
of today’s manufacturing talent and “The ability to respond to the and skills to directly impact the com-
ensure that women can contribute to complex, worldwide supply and pany’s bottom line.”
the future of this industry.” demand of business is vital to give a For application, curriculum and
company a competitive edge,” Swink tuition information, visit www.neeley.
EDUCATION said. “These two new advanced tcu.edu/MSinSCM. Ⅺ
Neeley School of
Business announces
MS in SCM degree
THE NEELEY SCHOOL OF BUSI-
NESS at TCU (Texas Christian
University) has announced a new ad-
vanced academic degree for work-
ing professionals in the supply chain
field to take their career to the next
level. Neeley’s Master of Science
in Supply Chain Management is a
30-hour, evening-only, college-credit
program beginning in fall 2013.
Applications are currently being ac-
cepted through May 30.
The degree includes a two-week
international experience to visit busi-
nesses and governments to better
understand global opportunities and
challenges. A field project teams
each student with a faculty member
to participate in vital research that
immediately impacts the student’s
company.
“Companies have told us that they
want advanced education options in
supply chain, especially since a degree
in supply chain management didn’t ex-
ist 10 years ago,” said Morgan Swink,
executive director of TCU’s Supply and
Value Chain Center and professor of
supply chain. “Supply chain manage-
ment has evolved out of an affiliation
between purchasing, logistics and
manufacturing into an integrated, mul-
ticultural, cross-functional discipline.
The Master of Science in Supply Chain
Management gives professionals and
their companies a decided advantage
in today’s complex, global business
environment.”
The Neeley School recently an-
nounced a non-credit option for sup-
ply chain professionals, the Supply
mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 11
12. LIFT TRUCK TIPS
Keep lift truck operators
in one place
Standard and optional lift truck features can help
the operator move as little as possible, a sure way
to increase comfort and productivity.
By Josh Bond, Associate Editor
O
perating a lift truck all day can be physically
demanding. With an eye toward improving oper-
ator comfort, many lift truck manufacturers have
been developing standard and optional ergonomic fea-
tures to reduce an operator’s stress and strain. Fingertip
controls can replace hydraulic levers to minimize upper
body exertion. Seat suspension can alleviate lower back
pain. But to really boost comfort and productivity, the
end-user should work not only to ensure the operator is
comfortable in his seat, but that he stays there as often
as possible.
According to Nebojsa “Beck” Trajkovic, electric
product planning specialist with Toyota Material Handling
U.S.A., ergonomics have such an impact on productiv-
ity that customers can even build a justification for new
equipment based on ergonomics alone.
“Customers understand more than ever how ergonom- nomic solutions. Scales reduce the need for an operator
ics play an important role in not only reducing fatigue, to exit and enter the lift truck to weigh a load, while the
but keeping the operator productive,” Trajkovic says. “If ability to bypass a stationary scale creates more direct
you’re trying to keep the operator as comfortable as pos- routes for load movement. Fork positioners reduce the
sible, their amount of movement is directly related.” likelihood of hand injury, speed up productivity, and,
With each new generation of lift truck, more ergo- again, keep the operator firmly planted in the seat.
nomic features become standard, such as fully sus- For operators in some applications, repeated entry and
pended seats, smaller steering wheels to reduce strain exit is unavoidable. In this case, there are features that
to shoulders, and a lower front cowl, which improves lessen the difficulty of frequent dismounts. In addition to
visibility. Improvements in visibility lead to a reduction more spacious floor space and a lower step height, lift
in movement, since viewing the forks, the load and any trucks can be fitted with a swivel-seat option to reduce
obstructions requires less craning, leaning and stretch- twisting motions. These seats can also lock at an angle to
ing. Minimizing leaning is not just a good practice, says minimize lower back strain for rear-facing operators.
Trajkovic, it’s an activity monitored by the Occupational The justification starts with listening to operators,
Safety and Health Administration (OSHA). Leaning out or providing a channel for feedback. Best of all, says
of a truck is a citable offense, says Trajkovic, and thus a Trajkovic, is that “happy operators will always lead to
clear indicator of a problem. increased productivity.”
But some of the most ergonomically friendly aftermar-
ket options for lift trucks, such as integrated scales and Josh Bond is Modern’s associate editor and can be reached
fork positioners, are not presented expressly as ergo- at jbond@peerlessmedia.com
12 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
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14. PACKAGING CORNER
Automated palletizers
emphasize flexibility, safety
Companies turn to automated palletizing equipment
to accommodate changing packaging requirements.
By Sara Pearson Specter, Editor at Large
S
maller packages. Club store packs with
shelf-ready packaging. Sustainability.
Packaging waste reduction.
All of these trends have pushed manufac-
turers and distributors to invest in automated
palletizing systems, particularly hybrid models
that feature a robotic arm to arrange cases
that are then fed—layer by layer—to a con-
ventional palletizer to secure them to a pallet.
“Companies are trying to do more with
less,” says Ted Yeigh, sales director for Co-
lumbia Machine. “That’s prompting them to
implement more automated solutions. With
hybrid palletizers, companies get the flexibil-
ity of a robot that can quickly adapt to chang-
ing packaging requirements and handle very
delicate products, including tall and tippy
cases, labels-out layer forming and other
challenging package types. They also benefit
from the simplicity of a conventional palletizer
to finish the load-building process.”
In the vein of doing more with less,
notes Yeigh, there’s been a strong uptick
in in-line, floor-level palletizer sales. “With
the full machine on the floor, it’s easier to
walk by and visually verify proper operation.
Floor-level palletizers are also easier to
access for regular maintenance.” tains in the discharge area—operate properly to protect
Of course, with all automated machinery, regular personnel, even in the event of a circuit failure.
service is required to keep it functioning at peak per- “We were seeing an increasing demand from multi-
formance. national corporations to mirror the safety standards set
To protect operators and service technicians, Colum- in place in Europe,” continues Yeigh. “It just made sense
bia started including Category 3 electrical circuits as a to make these safety enhancements a standard feature,
standard feature on all of their palletizers (including hy- rather than a custom-engineered solution.”
brid models) more than three years ago. The redundant,
fail-safe circuitry ensures that all integrated safety equip- Sara Pearson Specter is an editor at large with Modern and
ment—including interlocked door switches and light cur- can be reached at sara@saraspecter.com.
14 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
16. THE BIG PICTURE
Where Business Meets Materials Handling
Little things that make a
By Bob Trebilcock, executive editor
A utomation, technology and software promise new levels
of efficiency and productivity along with the capability
to execute complex order fulfillment strategies.That’s the
good news. The bad news: just as a supply chain is only
as efficient as its weakest link, a sophisticated materials
handling system is only as efficient as the bottlenecks
in a distribution center. A high-speed order fulfillment
be inspected and labeled for shipment is labor intensive
and prone to error.
That’s where powered mobile workstations can play
a role. Mobility allows the associate to take the technol-
ogy to wherever the work needs to be performed. Unlike
traditional carts, however, a powered mobile worksta-
tion includes a mobile power source to run a laptop,
engine won’t hit its numbers if inventory doesn’t get off thin client or industrial tablet; a bar code scanner; a
the receiving dock or orders can’t get through manual thermal printer; an electronic scale or cubing device; or
packing stations to meet shipping cut-off times. some other piece of equipment that might be used for
As a result, these new systems are highlighting the quality control or inspection. “The No. 1 reason people
big difference that little things can have on operations. invest in a powered mobile workstation is to cut down
Here are seven examples to consider for your facility. on or eliminate walking from the dock or picking area
to get labels, purchase orders or other information they
1. Receiving, inspection and quality control
with powered mobile workstations.
Receiving, storing and shipping full pallets is a relatively
need to put on product coming in or going out the door,”
says John O’Kelly, president of Newcastle Systems.
One e-tailer, for example, uses a powered mobile
simple process. On the other hand, breaking down workstation to pick oversized products that ship in their
those pallets into smaller units of measure that must storage packaging, such as 42-inch flat screen televi-
16 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
17. difference in your
operation
Automation is transforming distribution centers.
But don’t overlook the little things that can have
a big impact on your performance.
sions. Order selectors use the bar code scanner on the television. Associates then print and apply the shipping
cart to scan a location label on the rack to confirm that label from the cart before delivering the TVs to the ship-
they are picking a Sony television rather than a Sanyo ping area. “Labeling at the point of picking streamlines
the process and cuts down on errors,” says O’Kelly.
2. Capture cube and weight information now
for packaging later.
Cubing and weighing equipment has long been used
to capture the weight and dimensional information of
incoming pallets and cartons to make the best use of
storage locations.
With the increase in e-commerce, cubing and weigh-
ing systems are now being used to provide precise dimen-
sions and weights of individual items that are unpack-
aged and may also be an unusual shape. That information
allows a distributor to pick, cartonize and ship an order in
Cubing and weighing information helps e-tailers the most economical way possible. “The information col-
optimize packaging requirements and minimize lected upfront is exported to a WMS or some other sys-
shipping costs. tem that can be used to tell the order fulfillment person
mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 17
18. THE BIG PICTURE
Where Business Meets Materials Handling
which carton to use to minimize ship- early stages of a project
ping costs,” says Clark Skeen, president can deliver a design that
of CubiScan.” The information can also integrates with the flow
be used by the warehouse management of product through the
system (WMS) to group picks together building and reduces the
in a way that optimizes packing. Finally, number of touches and
it provides information for the new gen- movements at the pack-
eration of on-demand packaging systems ing station.
highlighted later in this article. Weight “If we understand
information, meanwhile, is used to the step-by-step process
Too often overlooked in the design of a system, the
check weigh orders for quality control at the outset, we can
shipping and receiving docks are the last frontiers
purposes. design in small, incre-
for efficiency.
Skeen says that most new customers mental savings in the
begin by installing cubing and weighing packing process,” Dehnert says, add- urges customers to think of the pick,
equipment on a powered mobile worksta- ing that a well-designed workstation pack, validation and flow of an order
tion so they can weigh and cube items can deliver productivity improvements as one continuous process that begins
already in storage. Once that process is of 20% to 25% for that process. “Those with picking and ends with a product
complete, the equipment is moved to the improvements may not seem like much going into a truck. “The first step used
receiving area to dimension new items at one station, but when you multiply to be to buy a print-and-apply system,”
or confirm that existing items haven’t them by the 15 or 20 workstations that says Hanrahan. “Now, we’re defining
changed in weight, shape or packaging. a typical big box retailer operates most the whole pick-and-pack process. That
of the year, it adds up.” allows us to take touches out and build
3. Integrate workstations with
the materials handling system.
Despite the amount of time, money 4. Lean out the labeling
process.
repeatability into the process before it
gets to the print-and-apply station.”
According to Hanrahan, there are
and planning invested in software, As the volume of parcel shipping rises, several areas to be considered in that
data collection technologies and auto- so does the interest in systems to auto- approach:
mation, manual workstations in the matically insert a returns label, print Centralize packing and labeling: If
packaging and value-added services and insert packing slips, and print and processes can be centralized, then the
areas are often an afterthought, says apply shipping labels. area can be laid out in an ergonomic
Jeff Dehnert, president of Dehnco. The place to start, says Dan Hanrahan, way that minimizes walking and maxi-
“Typically, system designers spend their president of Numina Group, isn’t with mizes the workflows to the packer even
time on software and equipment to the print-and-apply system, but further without automation.
pick with 100% accuracy and move an upstream with the picking process. He Rationalize carton sizes: Instead of
order at very fast speeds,” says Dehnert.
“All of a sudden, all that automation
has to integrate with a manual process
involving an hourly wage employee who
isn’t equipped with the right supplies
or tools to keep up with the through-
put of the system. The manual process
becomes the bottleneck.”
It’s a little like a downhill skier
hitting an unexpected patch of dirt:
Everything comes to a sudden halt.
Dehnert argues that considering the
requirements of the workstation in the
On-demand box making systems use
the information collected by cubing
and weighing systems to determine
and create the best size box for each
individual order.
18 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
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20. MODERN system report
13 or 14 different carton sizes, see if Loading and unloading
you can fill most of your orders with cartons is more efficient
just six different sizes. and ergonomic with
Assess your void: Make sure void fill a powered platform.
and packing documentation is located Or the process can be
within easy reach. “If you’re packing automated with robotics.
more than 500 cartons a day, you may be
a candidate for an automated system for 30% less cardboard on
inserting packing slips,” Hanrahan says. average in each box,”
Create an assembly line in packing: says Tom Coyne CEO of
Instead of one packer performing all System Logistics.
the steps in the process, consider put- The new on-demand
ting cartons on gravity flow conveyor and box making systems are
perform a different step at each station. designed for high-volume environ- Liebel, business engineer for Sealed Air.
By leaning out the processes before ments. System Logistics machines are “People have automated how they pick
the print-and-apply station, product will capable of making 3,000 boxes per line and sort their products. The pack station
flow more efficiently. in an eight-hour shift; a system from has always been a neglected area.”
Sealed Air is capable of making 5,500
5. Optimize and automate the
packaging process.
The conventional way to package indi-
boxes on a single line per shift. Both
System Logistics and Sealed Air provide
fully automated solutions that integrate
6. Don’t overlook the dock.
Walt Swietlik, director of field
support for Rite-Hite Products, tells a
vidual and less-than-carton quantities of with a materials handling system. story about a customer that outfitted all
items is to keep an inventory of different Along with a new approach to pack- of its lift trucks with attachments that
sized boxes and void fill to accommodate aging, these systems are also sold in a could load two 48-inch pallets side by
the many different sized orders that may variety of ways. side into a trailer at one time. The idea
be shipped. The result is that customers Packsize, for instance, does not was to drastically speed up the load-
are often shipping too much packaging charge upfront for its machinery. ing process. The only problem: No one
for an order and paying for more of the Rather, it provides the corrugated that realized that two side-by-side pallets
cube of a trailer or shipping container works with its machinery. wouldn’t fit through the dock doors.
than they really need. Similarly, Sealed Air does not charge “The loading dock is the last frontier for
“People squeeze every second of the upfront for its equipment either, other efficiency,“ says Swietlik. “A lot of con-
cycle time from the processes inside than an installation fee. Nor
their buildings,” says Hanko Kiessner, does it charge for the mate-
CEO of Packsize International. “But rials used in the machine.
when the product leaves the building, Instead, it charges a transac-
they lose more in excess shipping costs tion fee for each box made by
than they saved inside the building.” the machine.
Instead, a new generation of machin- System Logistics, on the
ery has come to market that makes the other hand, offers a conven-
right size shipping container for each tional sales model, where the
order—and does it on-demand. These customer buys the machine
systems combine information about the and works with any corru-
items being picked from the WMS with gated supplier.
the dimensional and weight informa- “The growth of e-com-
tion collected by weighing and cubing merce is driving the need for
systems to determine the best size box these solutions,” says Don
that fits each order. The machines then
make the box at the time the order is With powered mobile
being picked. carts, associates can take
In the most efficient operations, technology, such as mobile
the order is picked directly to the on computers, scanners and
demand box rather than into a tote to printers to where the work
be packaged later. “You’re using about needs to be done.
20 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
21. Solutions That Move
Your Business Forward
Successful businesses come to MHI – and its 800 member companies -
for professional resources and reliable information as they make
material handling and supply chain capital investment decisions. That’s
because they know MHI is the premier trade association and information
resource for this diverse industry. In fact, MHI’s solutions set the
industry standard for excellence.
MHI provides:
MHI Solutions magazine
Connect with MHI, where you can find solutions that make the supply
chain work. For more information, visit MHI.org.
Find us on: Scan to learn
more about MHI:
22. THE BIG PICTURE
Where Business Meets Materials Handling
sultants have looked at the efficiencies
they can gain inside the box. But the
main artery in and out of a facility is the
dock doors and they are an afterthought
to the design of most facilities.”
Too often, he adds, docks are too high
for today’s trailers. Dock doors aren’t wide
enough for today’s loads. And, dock plates
are often the wrong size and capacity for
what the client wants to run over them.
“In those instances, the dock becomes
like a clogged artery,” Swietlik says.
“When a truck comes in, it has to be
loaded or unloaded by hand and produc-
tivity goes down the tube.”
The solution, he adds, is relatively
simple. Before leasing a building or A smartly designed workstation that is integrated with the materials handling
implementing new processes, have a dis- system makes the most of manual packing operations.
cussion with someone who specializes in
dock equipment to make sure the right extendable conveyor that reaches into the shift.” The reason is that the associ-
equipment is in place to work with the the trailer. In the second example, an ate can slide the cases into position rather
distribution and shipping procedures. associate often has to reach over his than lift them.
“The dock is part of an overall system,” head or stand on a step stool to get to At the same time, robots are now
Swietlik says. “If you’re maximizing the the cartons at the top of the stack. Both being deployed to automatically load and
cube on a pallet and you want to maxi- approaches are hard work and neither unload cartons from trailers and shipping
mize the cube in a trailer, that cube bet-is very ergonomic. containers. The technology is already
ter roll through the doors efficiently.” Semi-automated and automated being used by a leading CPG manufac-
solutions for loading and unloading car- turer, according to Joe O’Connor, direc-
7. Automation doesn’t stop
at the dock door.
tons can now extend the reach of auto-
mated materials handling systems right
Loading or unloading floor-loaded con- into the trailer.
tor of marketing for Wynright. “One robot
can work two containers,” O’Connor
says. And while the solution still requires
tainers and trailers is typically done in The first approach involves attaching a an associate on the dock to oversee the
one of two ways. Cartons are manu- powered platform to a flexible roller con- robots, typically one associate can moni-
ally loaded onto a pallet that is then veyor or extendable belt conveyor. The tor three robots. Ⅺ
removed by a pallet jack or lift truck. platform’s controls allow an associate to
Or the cartons are loaded onto an position it at an ergonomic height and
slide a carton from the con- Companies mentioned
veyor into position in the in this article
stack. “One liquor distribu- CUBISCAN: www.cubiscan.com
tor in Ontario was loading DEHNCO: www.dehnco.com
ENGINEERED LIFTING SYSTEMS:
575 cases an hour with two www.destuffit.com
people in the trailer using NEWCASTLE SYSTEMS:
just a flexible roller con- www.newcastlesys.com
veyor,” says Richard Kat, NUMINA GROUP: www.numinagroup.
vice president of sales and com
PACKSIZE INTERNATIONAL: www.pack-
marketing for Engineered size.com
Lifting Systems. “By add- RITE-HITE PRODUCTS: www.ritehite.com
ing the powered platform SEALED AIR: www.sealedairautoma-
to the conveyor, one opera- tion.com
Automated on-demand box making systems are tor can now load 650 cases SYSTEM LOGISTICS: www.systemlogis-
tics.com
designed to integrate with materials handling per hour and the operators WYNRIGHT: www.wynright.com
systems handling from 3,000 to 5,500 boxes per aren’t as tired at the end of
line per shift.
22 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
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24. MODERN special report
2013 Warehouse/DC Equipment and Technology Survey:
Moving more,
spending less
Our annual outlook survey finds the industry steadying for a new, slower
pace of growth following the release of pent-up demand after the
downturn. Yet, even as planned spending drops off, facility activity is
the highest since 2007—signaling that “doing more with less” has stuck.
By Josh Bond, Associate Editor
Respondent
J ust as an effective materials handling
system cannot be shaped around one
data point, interpreting the results of an
industry survey is about more than just
the bottom line.
For instance, take a look at the
average materials handling budget as
reported by Peerless Research Group
In the meantime, most businesses will
tend to sit tight.
“In the past couple of years, we saw
the effect of delayed spending,” says
Hill. “Now, many have caught up; and
unless growth is phenomenally good,
there won’t be as much pressure to
spend. We’re looking at modest growth
demographics (PRG) in the 2013 State of Warehouse/ that perhaps many feel they are able to
In January, Peerless Research DC Equipment and Technology Survey. handle.”
Group e-mailed survey ques- At nearly 26% less than last year, the In fact, respondents expressed a
tionnaires to readers of Modern average anticipated spending among great deal of optimism that they could
Materials Handling and Logistics the survey’s 597 respondents is just handle it. When asked about their
Management, yielding 597 qualified
$334,510. In fact, about half of those anticipated activity levels over the next
respondents from manufacturing
(39%), warehousing (21%), corpo- respondents plan to spend less than two years, almost 95% said that they
rate (25%) and aligned logistics $50,000. expected activity to increase or stay
professionals (15%). Revenues of But if we look at activity levels, facil- the same. To be fair, more than 50% of
responding companies range from ity capacity numbers have jumped up respondents suggested their warehous-
large (26% have annual revenues of
by as much at 10% in one year—fol- ing activity would stay the same.
$500 million or more) to small (47%
are below $50 million). Qualified lowing six consecutive years of decline. According to George Prest, CEO
respondents are those managers According to John Hill, director at St. of Material Handling Industry (MHI),
and personnel involved in the pur- Onge, capacity figures between 60% growth is projected to improve into
chase decision process of materials and 70%, although a big improvement, 2014. Following industry growth rates
handling solutions.
are still below a certain threshold. of 14% in 2011 and 10% in 2012, 2013
When they rise above 70%, he says, it’s could hover around 6% before breaking
often necessary to spend on materials double digits again in 2014.
handling equipment just to keep up. “We’re on the declining side of the
24 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
26. MODERN special report
in 2012. This year, only about 30% said
Level of spending that had been the case, and just 26%
In total, over the next 12 months, approximately how much do you expect expect spending to increase in 2013. In
to spend on materials handling equipment and information systems solutions? 2012, 45% said they expected spending
to stay the same in the coming year, but
4%
$2.5 million or more
8%
now almost 60% expect their spending
to remain unchanged in 2013.
6%
$1 million-$2.49 million According to Jim Moran, chairman
7%
7% of the Industrial Truck Association and
$500,000-$999,999 Ⅵ 2013
6% member of the board of directors at
Ⅵ 2012 Crown Equipment, the industry might
8%
$250,000-$499,999
9% want to get used to a slow and steady
$100,000-$249,999
14% approach.
16% “Everyone is being very conservative,
14% but that’s predictable given the news
$50,000-$99,999
15%
you hear today and the level of uncer-
$25,000-$49,999 19% tainty,” says Moran. “The tendency is
16%
to feel negative, and it’s hard to shake
29%
Less than $25,000 that. The reality is that it’s not that bad,
23%
but it’s so much different than any-
thing we’ve seen in the past. I think the
industry is moving gradually forward in
$451,000 $451,700 Spending level a positive way, but it’s a pace we have to
will drop get used to, because I think it’s going to
$334,510
significantly be around for a while.”
from last year.
2011 2012 2013 The return of labor
The 14% of respondents who reported
Median anticipated spending 2011 2012 2013 that they would hold off on investments
$77,000 $85,500 $58,620 in the coming year will avoid primarily
big-ticket items like automation, stor-
Source: Peerless Research Group (PRG) age, and technology and software. The
19% who plan to proceed with invest-
growth curve,” says Prest, “but we can results. Aschenbrand also pointed to ments are looking at the same technolo-
expect to see things trending upward the political and economic climate gies, including conveyors and sortation,
from here. Specific industry segments at the time of the survey, which was information technology like warehouse
will pick back up at different times, but fielded in January as President Obama management systems (WMS) and
the overall outlook is good.” was poised to begin his second term. enterprise resource planning (ERP)
A level of uncertainty was reflected systems, as well as automatic guided
Demographics and reduced in the 50% of respondents who said vehicles and robotics.
spending that they will take a “wait-and-see” Hill says that the outlook for robot-
This year’s respondent base of 597 is approach in 2013, up from 46% last ics suppliers is good as solutions for
about twice last year’s base of 314 sur- year. Those with pre-approved capital picking and packing gain momentum.
vey responses. However, according to expenditure budgets for materials han- But he was quick to point out that
Judd Aschenbrand, director of research dling solutions dropped from 60% in manpower remains an effective solu-
for PRG, the demographic breakdown 2011 and 48% in 2012 to 38% this year, tion, particularly for retailers facing the
of the group remains statistically simi- averaging just $390,000. Both figures e-commerce boom. He pointed to the
lar to last year. are the lowest in seven years. 43% of respondents who plan to spend
One notable change is in the level The uncertainty also made an impact on labor and staffing in 2013, up from
of participation in the southern and on optimism as compared with January 40% in 2012 and 37% in 2011.
southeastern part of the country, where 2012, when 40% of respondents to last However, MHI’s Prest suggests that
20% of respondents are located—as year’s survey said they expected their hiring practices have evolved in recent
compared to just 10% in last year’s materials handling spending to increase years. As companies expand their labor
26 MA R C H 2 0 1 3 / MODERN MATERIALS HANDLING mmh.com
28. MODERN special report
Budget levels
Do you have a pre-approved annual capital
expenditures budget for materials handling
solutions? (2009 information not available) If yes, what is the amount?
Less than 11%
60% $25,000 10%
57%
27%
$25,000-
$99,000 19%
48%
46%
42% $100,000- 21% Ⅵ 2013
38% $249,000 20%
Ⅵ 2012
$250,000- 21%
$999,999 22%
20%
$1,000,000+
29%
Mean:
2007—$600,120 2011—$694,500
2008—$655,000 2012—$470,250
2007 2008 2010 2011 2012 2013 2010—$515,000 2013—$390,000
Source: Peerless Research Group (PRG)
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29. MODERN special report
The economy and materials handling tivity of each. “It’s a
operations trends different kind of hir-
How does your company’s spending on How do you expect your company’s ing,” he says. “People
materials handling solutions in 2012 spending on materials handling solutions are being more cau-
compare with 2011? in 2013 to compare with 2012? tious about the types of
And by what percentage? And by what percentage? employees they bring
into their companies.”
As respondents work
to grow their work-
30% Increased 27% Increasing force and productivity,
14% Decreasing it is not surprising that
49% Stayed safety tops the survey’s
about the
same
list of most important
60% Will stay issues, placing above
21% Decreased about the company growth,
same
throughput, and last
year’s top issue: cost
Source: Peerless Research Group (PRG) containment. Moran
suggests the reason pro-
ductivity metrics have
forces, they will tend to recruit and bodies at the problem,” businesses will fallen in importance is due to the spend-
train with an eye toward long-term use employees to leverage investments ing on technology in recent years, which
retention. No longer content to “throw in technology, maximizing the produc- has helped many companies to be more
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