SlideShare a Scribd company logo
1 of 68
Download to read offline
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
Power at Your Fingertips
Brought to You by Dematic Mobile Monitor

Access warehouse data whenever and wherever you
want with a few taps of your fingers. Dematic Mobile
Monitor delivers crucial information via your mobile device,
eliminating the need for you to be at your desk, in your
warehouse or even the same country to keep your business
running smoothly.

With information at your fingertips, you have the power to
quickly spot potential issues and re-direct your operations
to avoid any process delays. Gain overall efficiency and       Scan the QR code for a
knowledge that enables smarter decision-making.                video trip that leads you to
                                                               a better, smarter future.
Dematic Mobile Monitor can unleash your warehouse
potential today for a better future now.
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
THE RELIABLE, HARDWORKING
                                                                                 E     B       R    K
                                                                              PALLET JACKS THAT WON’T
                                                                               A E           H
                                                                              LET YOU DOWN.
                                                                               E    U O

                                                                              PROBLEM SOLVED.
                                                                                O         E




            We pushed our heavy duty pallet jacks to the limit—1000+ hours in an extreme
            cold storage application test, emptying 1,300 trailers, moving 50,000 pallets
            and transporting 105,000,000 lbs. of freight—without lubrication or service.
            Just the dependability that you’d expect from a world-class manufacturer
            like Yale. Of course, we don’t recommend you treat your trucks this way.
            Always follow recommended maintenance intervals.
            Find out more at Yale.com.
12YLE5275




            Yale is a Registered Trademark.     is a registered copyright.
            ©Yale Materials Handling Corporation 2012. All Rights Reserved.
VOL. 68, NO. 3




                                                                                                                                                                               ®

                                                                                                PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,
                                                                                                WAREHOUSING AND MANUFACTURING




                                                     Cover illustration by Dan Vasconcellos




COVER STORY
BIG PICTURE

16 Little things make a big difference
Automation is transforming distribution centers. But don’t overlook
the little things that can have a big impact on your performance.
                                                                                                                                                60 seconds with...
                                                                                                                                                Bob Babel, Forte

FEATURES
EQUIPMENT REPORT

32 Carts & Casters: Business in motion                                                          DEPARTMENTS & COLUMNS
As lean sensibilities migrate from the production floor to the                                    3/ Upfront
warehouse, carts, and casters prove a pivotal tool for enhancing the                             7/ This month in Modern
mobility of product, people, and processes.                                                     12/ Lift Truck Tips: Ergonomics
                                                                                                14/ Packaging Corner: Palletizing
READER SURVEY
                                                                                                62/ Focus On: Casters, Carts, Tuggers
24 Industry Outlook:
                                                                                                66/ 60 seconds with...
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                         NEWS
downturn. Yet, even as planned spending drops off, facility activity is the                      9/ Women could be key to filling the
highest since 2007— signaling that “doing more with less” has stuck.
                                                                                                    manufacturing talent gap
SHOW REVIEW                                                                                     10/ STEP Award winners announced
                                                                                                11/ Neeley School of Business announces
26 ProMat 2013: A look at the show
A look back at some of the products and services our                                                MS in SCM degree
editors saw at ProMat 2013.
PRODUCTIVITY SOLUTION

50 Retailer adds modules to WMS to                                                               Modern Materials Handling® (ISSN 0026-8038) is published monthly by
                                                                                                 Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite
monitor and enable growth                                                                        200, Framingham, MA 01701. Annual subscription rates for non-qualified
                                                                                                 subscribers: USA $119, Canada $159, Other International $249. Single
Company that took orders by fax 15 years ago now commands 30%                                    copies are available for $20.00. Send all subscription inquiries to Modern
                                                                                                 Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701
market share.                                                                                    USA. Periodicals postage paid at Framingham, MA and additional mail-
                                                                                                 ing offices. POSTMASTER: Send address changes to: Modern
51 WMS helps bring distribution in-house                                                          Materials Handling, PO Box 1496 Framingham MA 01701-1496.
                                                                                                 Reproduction of this magazine in
amid strong growth                                                                               whole or part without written permis-
                                                                                                 sion of the publisher is prohibited.
After cutting ties with a 3PL, retailer easily handles 50% spikes in daily                       All rights reserved. ©2013 Peerless
                                                                                                 Media, LLC.
order volume.

mmh.com                                                                                       MODERN MATERIALS HANDLING / M                         A R C H    2013        5
www.hyundai-ce.com




                                                                                      further!
                Moving you                                                               HYUNDAI FORKLIFT TRUCKS




                FORKLIFT LINE -UP




                  LPG Forklift 1.5 ~ 5.0Ton   Diesel Forklift 1.5 ~ 25Ton   Battery Forklift (Counter Balanced)        Electric Order Picker
                                                                                      1.6 ~ 5.0Ton                     10BOP-7 / 13BOP-7




                   Reach Truck (Pantograph)     Reach Truck (Standing)            Reach Truck (Seated)            Electric Towing / Platform Truck
                        1.5 ~ 2.3Ton                1 ~ 2.5Ton                       1.4 ~ 2.5Ton                         40TA-7 / 15PA-7




HEAD OFFICE(SALES OFFICE) 14th FL., Hyundai Bldg. 75 Yulgok-ro, Jongno-gu, Seoul, Korea
Tel. 82. 2. 746. 4753 / 4609 Fax. 82. 2. 746. 7444 / 7445 E-mail. sisky@hhi.co.kr
®®
                                                                                THIS MONTH IN                                         MODERN
EDITORIAL OFFICES
 EDITORIAL OFFICES
111 Speen Street, Suite 200
 111 Speen Street, Suite 200                                                                               MICHAEL LEVANS
Framingham, MA 01701-2000
 Framingham, MA 01701-2000                                                                                    GROUP EDITORIAL
(800) 375-8015
 (800) 375-8015                                                                                                     DIRECTOR



Michael Levans
 Michael Levans
GROUP EEDITORIALDIRECTOR
 GROUP DITORIAL DIRECTOR
mlevans@peerlessmedia.com
 mlevans@peerlessmedia.com

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
 MAGAZINE SUBSCRIPTIONS                  savviest retailers,” says Trebilcock. “But          more sophisticated order fulfillment equip-
Start, renew or update your FREE
 Start, renew or update your FREE
magazine subscription at
 magazine subscription at                that engine simply won’t hit its numbers if         ment,” says Napolitano. “These steps force
www.mmh.com/subscribe.
 www.mmh.com/subscribe.
Contact customer service at:
 Contact customer service at:
                                         inventory doesn’t get off the receiving dock        managers to step back and see how they
Web: www.mmh.com/subscribe
 Web: www.mmh.com/subscribe
Email: mmhsubs@ehpub.com
                                         or orders can’t get through manual packing          can better integrate their data with their
 Email: mmhsubs@ehpub.com
Phone: 1-800-598-6067
 Phone: 1-800-598-6067                   stations to hit shipping cut-off times.”            systems and make real-time visibility more
Mail: Peerless Media
 Mail: Peerless Media
         P.O. Box 1496
          P.O. Box 1496
                                            On the theme of often overlooked yet             of a reality.”
         Framingham, MA 01701
          Framingham, MA 01701
ENEWSLETTER SUBSCRIPTIONS
 ENEWSLETTER SUBSCRIPTIONS
Sign up or manage your FREE
 Sign up or manage your FREE
eNewsletter subscriptions at
 eNewsletter subscriptions at
www.mmh.com/enewsletters.
 www.mmh.com/enewsletters.
                                                                                                                     Official Publication of
                                          Member                    Member of                      Winner
                                                                                               Jesse H. Neal
                                                                                            Certificates of Merit
                                                                                              for Journalistic
                                                                                                 Excellence



www.peerlessmedia.com
 www.peerlessmedia.com
                                             mmh.com                                MODERN MATERIALS HANDLING / M                              A R C H   2013   7
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
Follow
                                                                                Modern Online
                                                                                          facebook.com/mmhmagazine
                                                                                          Twitter | @modernmhmag
                                                                                          Web | mmh.com




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
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
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
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
The
           ORIGINAL PIONEERS




REVOLUTIONARY
        by Design
 After laying the foundation for high-frequency
 charging, HAWKER continues their tradition
 of motive power innovation with their patented
 high-frequency, IONIC smart charging technology.
 With the greatest efficiency, highest power factor,
 and highest charge effectiveness available in the
 industry, HAWKER ’s IONIC patented charge
 profile reduces your utility consumption and
 demand while prolonging battery life, reducing
 water usage, and increasing productivity.

Call 1.877.7HAWKER to join
     the high-frequency IONIC revolution.


                P.O. Box 808 | 9404 Ooltewah Industrial Drive | Ooltewah, Tennessee 37363 USA
                PH. (423) 238-5700 | 877-7HAWKER | FAX (423) 238-6060 | www.hawkerpowersource.com
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
EXCELLING AT
MULTI-CHANNEL ORDER
FULFILLMENT BY JASON.
FLEXIBILITY ENSURED
BY VOCOLLECT.




A VOCOLLECT SPONSORED WEBINAR SERIES

  BUSINESS OPTIMIZATION           SMART INNOVATION            OPERATIONAL FLEXIBILITY                  PREMIER EXPERIENCE




 MODERN MATERIALS HANDLING THOUGHT LEADERS WEBINAR
 “TRANSITIONING SUCCESSFULLY TO OMNI-CHANNEL                                FEATURED PRESENTERS:

 DISTRIBUTION” – PRESENTED BY FORTNA                                                        Jason Denmon
                                                                                            Multi-Channel Retail Industry Leader
 Get practical advice on planning and implementing cost-effective,                          Fortna Inc.

 multi-channel order fulfillment into your distribution center design
 and how to optimize your operations.
                                                                                            Michael Levans
                                                                                            Group Editorial Director
 MARCH 28, 2013                                                                             Supply Chain Group, Peerless Media
 2:00 P.M. EST


      ARE YOU READY TO MAKE
      YOUR BUSINESS BETTER?                          Visit www.mmh.com/vocollect to register.

                                                                                  © 2013 Intermec IP Corp. All Rights Reserved.
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
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
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
The fastest-growing companies are making distribution their FORTE.


Supply Chain Consulting
Delivering optimal performance
                                                                                             First-hand experience. Combining
throughout the distribution network                                                          decades of empirical process and
                                                                                             practice knowledge with advanced
                                                                                             business intelligence and analytics
Supply chain managers must constantly look for ways to improve their                         tools, FORTE’s consultants provide
distribution networks to create differentiation and stay ahead of the                        powerful and pragmatic solutions
                                                                                             to workday problems, as well as
competition. At FORTE, our expert consultants engineer and implement
                                                                                             for more strategic issues such
innovative distribution operations that
                                                                                             as network optimization, WMS
are flexible, scalable and, above                                                            evaluation and 3PL strategies.
all, profitable for many of
the world’s fastest-
growing companies.




                                    Keep pace with growth. FORTE helps
                                    companies deploy supply chain strategies
                                    that enable the most aggressive growth                         Strive for perfection. Are
                                    plans and capitalize on opportunities                          there delighted customers
                                    in the marketplace. We’ll recommend                            at the end of your supply
                                    cost-justifiable process improvements                          chain? We’ll help you assess
                                    and software applications that increase                        and redesign distribution
                                    throughput while reducing costs.                               systems that yield near-
                                                                                                   perfect accuracies while
                                                                                                   reducing fulfillment times
                                                                                                   from days to minutes. With
                                                                                                   single-source accountability
                                                                                                   and total objectivity, FORTE
                                                                                                   ensures that your customers
                                                                                                   will experience exceptional
                                                                                                   service levels.

                         Download white paper
                         Evaluating the Effectiveness of
                         Existing Distribution Operations
                         at forte-industries.com/effective




S U P P LY C H A I N C O N S U LT I N G   |   DISTRIBUTION CENTER DESIGN/BUILD   |   WAREHOUSE CONTROL SYSTEM SOFTWARE
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
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:
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
WAMAS®- The ULTIMATE WMS Solution
Warehouse Management Software for Every Application and Budget
Whether your warehouse is entirely manual, fully automated or a combination, WAMAS® by Schaefer
Systems provides you with a warehouse management software package with unlimited possibilities.
Our software is easy to use, provides real time stock management and efficient inventory control. It
allows for synchronization of interdependent processes across your entire distribution system.

With over 500 successful implementations worldwide, Schaefer’s software solutions and continuous
product advancements allow our customers to rest assued that they will have long term sustainable
systems for their warehouse operations.




          (877) 724-2327
          automation.ssi-schaefer.us
          Schaefer Systems International, Inc.
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
Daniel Guidera



mmh.com          MODERN MATERIALS HANDLING / M   A R C H   2013   25
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
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
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)




   Rely On Your Best
   Resource… You
   stepLogic Enables You To Do More!
   Build New Screens                 Develop New Processes
   Create New RF Dialogs             Create Custom Enhancements

   Organizations like yours rely on WMS. Yet you are constantly struggling to
   meet rapidly changing business requirements. At DMLogic, we have decades of
   experience with WMS. That’s why we created stepLogic.
   stepLogic is a new software scripting tool that frees your users from the
   constraints of your existing system. stepLogic expands customization possibilities,
   simplifies and shortens the process and enables YOU to do more.




                                                                                          Scan here
                                                                                          to see
   Hear how our clients are putting stepLogic to use,                                     stepLogic
   contact us at 412.440.4493.                                                            in action



                               Solving Challenges Inside the Four Walls DMLogic designs, installs and supports systems to manage what you do inside
                               your four walls. The DMLogic team of senior consultants excels at process and system design of WMS and MHE systems in
                               virtually every industry, and for companies large and small. For more information, visit: www.dmlogicllc.com
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




     I
     Slip Strip

                                                Sl p Str p                                             Aigner Label Holder Corp.
     Slip Strip                                                                                           218 MacArthur Avenue
                                                                                                         New Windsor, NY 12553
                                                                                                              Tel: 1.800.242.3919
                                                                                                               Fax: 845.562.2638
                                                                                                     info@aignerlabelholder.com

                                       Call for a FREE Catalog or Samples!                  www.aignerlabelholder.com
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5
5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5

More Related Content

What's hot

Business Models Mindtrek
Business Models MindtrekBusiness Models Mindtrek
Business Models MindtrekTommi Pelkonen
 
Ultimate Content Delivery for Smart Connected Vehicles
Ultimate Content Delivery for Smart Connected VehiclesUltimate Content Delivery for Smart Connected Vehicles
Ultimate Content Delivery for Smart Connected VehiclesConnected-Blog
 
Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...
Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...
Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...Antony Mayfield
 
Whitepaper Mobile World Congress 2018 - English version
Whitepaper Mobile World Congress 2018 - English versionWhitepaper Mobile World Congress 2018 - English version
Whitepaper Mobile World Congress 2018 - English versionMobile Marketing Association
 
CEOMeeting BYD: Date with BYD & China
CEOMeeting BYD: Date with BYD & ChinaCEOMeeting BYD: Date with BYD & China
CEOMeeting BYD: Date with BYD & ChinaClub de Innovación
 
The new era of supply chain begins now
The new era of supply chain begins nowThe new era of supply chain begins now
The new era of supply chain begins nowCaroline Boscher
 
Mapping Services V1
Mapping Services V1Mapping Services V1
Mapping Services V1simonshapiro
 
The disruption of industry logics
The disruption of industry logicsThe disruption of industry logics
The disruption of industry logicsEricsson
 

What's hot (13)

Business Models Mindtrek
Business Models MindtrekBusiness Models Mindtrek
Business Models Mindtrek
 
Ultimate Content Delivery for Smart Connected Vehicles
Ultimate Content Delivery for Smart Connected VehiclesUltimate Content Delivery for Smart Connected Vehicles
Ultimate Content Delivery for Smart Connected Vehicles
 
CBI energy conference: Jon Bentley
CBI energy conference: Jon BentleyCBI energy conference: Jon Bentley
CBI energy conference: Jon Bentley
 
SMACology
SMACologySMACology
SMACology
 
Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...
Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...
Strategy paper: Stories, Numbers & Conversations: Nokia's principles for soci...
 
Whitepaper Mobile World Congress 2018 - English version
Whitepaper Mobile World Congress 2018 - English versionWhitepaper Mobile World Congress 2018 - English version
Whitepaper Mobile World Congress 2018 - English version
 
Supply chain sustainability
Supply chain sustainabilitySupply chain sustainability
Supply chain sustainability
 
CEOMeeting BYD: Date with BYD & China
CEOMeeting BYD: Date with BYD & ChinaCEOMeeting BYD: Date with BYD & China
CEOMeeting BYD: Date with BYD & China
 
The new era of supply chain begins now
The new era of supply chain begins nowThe new era of supply chain begins now
The new era of supply chain begins now
 
Mapping Services V1
Mapping Services V1Mapping Services V1
Mapping Services V1
 
Value Partners Power Up
Value Partners Power UpValue Partners Power Up
Value Partners Power Up
 
The disruption of industry logics
The disruption of industry logicsThe disruption of industry logics
The disruption of industry logics
 
purpose driven alliances
purpose driven alliancespurpose driven alliances
purpose driven alliances
 

Viewers also liked

IT guide for Vocollect Voice Systems
IT guide for Vocollect Voice SystemsIT guide for Vocollect Voice Systems
IT guide for Vocollect Voice SystemsBoreal Technologies
 
Apresentação Sbet
Apresentação SbetApresentação Sbet
Apresentação Sbetcarolsorelli
 
Linux & Open Source : Lezione Tre Pratica
Linux & Open Source : Lezione Tre PraticaLinux & Open Source : Lezione Tre Pratica
Linux & Open Source : Lezione Tre PraticaDario Mazza
 
Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...
Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...
Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...Sonali Srivastava
 
'An Evolution Into Specification By Example' by Adam Knight
'An Evolution Into Specification By Example' by Adam Knight'An Evolution Into Specification By Example' by Adam Knight
'An Evolution Into Specification By Example' by Adam KnightTEST Huddle
 
Asset Owners Disclosure Project - 2012 Global Climate Index
Asset Owners Disclosure Project - 2012 Global Climate IndexAsset Owners Disclosure Project - 2012 Global Climate Index
Asset Owners Disclosure Project - 2012 Global Climate IndexThe Climate Institute
 
Catálogo Ferramentas Mateus
Catálogo Ferramentas MateusCatálogo Ferramentas Mateus
Catálogo Ferramentas MateusFerramentasMateus
 
конкурс енергія і середовище 2015
конкурс енергія і середовище 2015конкурс енергія і середовище 2015
конкурс енергія і середовище 2015antoniktamara
 
E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...
E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...
E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...e-teaching.org
 
Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...
Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...
Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...Marco Peres
 

Viewers also liked (19)

IT guide for Vocollect Voice Systems
IT guide for Vocollect Voice SystemsIT guide for Vocollect Voice Systems
IT guide for Vocollect Voice Systems
 
Hb.01.rgt.dut
Hb.01.rgt.dutHb.01.rgt.dut
Hb.01.rgt.dut
 
General presentation of the project GeoEducation In Action - LLP (06March2014...
General presentation of the project GeoEducation In Action - LLP (06March2014...General presentation of the project GeoEducation In Action - LLP (06March2014...
General presentation of the project GeoEducation In Action - LLP (06March2014...
 
сам. вести 28
сам. вести 28сам. вести 28
сам. вести 28
 
EXPERT TOPIC - TROUT
EXPERT TOPIC - TROUTEXPERT TOPIC - TROUT
EXPERT TOPIC - TROUT
 
Apresentação Sbet
Apresentação SbetApresentação Sbet
Apresentação Sbet
 
Linux & Open Source : Lezione Tre Pratica
Linux & Open Source : Lezione Tre PraticaLinux & Open Source : Lezione Tre Pratica
Linux & Open Source : Lezione Tre Pratica
 
Communications Ternopil
Communications TernopilCommunications Ternopil
Communications Ternopil
 
Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...
Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...
Paper Presentation "Opportunities & Challenges For New Outlook In Global Work...
 
'An Evolution Into Specification By Example' by Adam Knight
'An Evolution Into Specification By Example' by Adam Knight'An Evolution Into Specification By Example' by Adam Knight
'An Evolution Into Specification By Example' by Adam Knight
 
Programma Cheese 2013 a Bra
Programma Cheese 2013 a BraProgramma Cheese 2013 a Bra
Programma Cheese 2013 a Bra
 
Asset Owners Disclosure Project - 2012 Global Climate Index
Asset Owners Disclosure Project - 2012 Global Climate IndexAsset Owners Disclosure Project - 2012 Global Climate Index
Asset Owners Disclosure Project - 2012 Global Climate Index
 
Catálogo Ferramentas Mateus
Catálogo Ferramentas MateusCatálogo Ferramentas Mateus
Catálogo Ferramentas Mateus
 
конкурс енергія і середовище 2015
конкурс енергія і середовище 2015конкурс енергія і середовище 2015
конкурс енергія і середовище 2015
 
VetCloud
VetCloudVetCloud
VetCloud
 
E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...
E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...
E-Prüfungs-Szenarien: Im Klausurraum, mit Prüfungslaptop und am eigenen Lapto...
 
SMARTHEART + POLICE / creative watches
SMARTHEART + POLICE / creative watchesSMARTHEART + POLICE / creative watches
SMARTHEART + POLICE / creative watches
 
2 Informix Introduction
2 Informix Introduction2 Informix Introduction
2 Informix Introduction
 
Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...
Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...
Evolución y perspectivas de las Ciudades Inteligentes en América Latina: Caso...
 

Similar to 5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5

A Modern DCS is Essential for Digital Transformation
A Modern DCS is Essential for Digital TransformationA Modern DCS is Essential for Digital Transformation
A Modern DCS is Essential for Digital Transformationsoftconsystem
 
REFASHIOND - State of Supply Chain 2022 FULL.pdf
REFASHIOND - State of Supply Chain 2022 FULL.pdfREFASHIOND - State of Supply Chain 2022 FULL.pdf
REFASHIOND - State of Supply Chain 2022 FULL.pdfREFASHIOND
 
Digital Transformation Iniciative
Digital Transformation IniciativeDigital Transformation Iniciative
Digital Transformation IniciativeMiguel Mello
 
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul JadhavAgile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul JadhavAgileNetwork
 
The smac-code-embracing-new-technologies-for-future-business (1)
The smac-code-embracing-new-technologies-for-future-business (1)The smac-code-embracing-new-technologies-for-future-business (1)
The smac-code-embracing-new-technologies-for-future-business (1)Sumit Roy
 
Microsoft Telecommunications Newsletter | May 2021
Microsoft Telecommunications Newsletter | May 2021Microsoft Telecommunications Newsletter | May 2021
Microsoft Telecommunications Newsletter | May 2021Rick Lievano
 
Platform Business Models: Implications for Value Creation
Platform Business Models: Implications for Value CreationPlatform Business Models: Implications for Value Creation
Platform Business Models: Implications for Value CreationRobin Teigland
 
Cognizanti11-IoT_high-res-print_TL
Cognizanti11-IoT_high-res-print_TLCognizanti11-IoT_high-res-print_TL
Cognizanti11-IoT_high-res-print_TLAdithya Sastry
 
Automotive Technology Vision 2019
Automotive Technology Vision 2019Automotive Technology Vision 2019
Automotive Technology Vision 2019accenture
 
Comarch Technology Review magazine
Comarch Technology Review magazineComarch Technology Review magazine
Comarch Technology Review magazineComarch
 
Autotechinsider March 2010 Newsletter V1
Autotechinsider March 2010 Newsletter V1Autotechinsider March 2010 Newsletter V1
Autotechinsider March 2010 Newsletter V1coachdave
 
Dont Get SMACked
Dont Get SMACkedDont Get SMACked
Dont Get SMACkedCognizant
 
The smac revolution
The smac revolutionThe smac revolution
The smac revolutionSumit Roy
 
Realising Digital’s Full Potential in the Value Chain
Realising Digital’s Full Potential in the Value ChainRealising Digital’s Full Potential in the Value Chain
Realising Digital’s Full Potential in the Value ChainCognizant
 
Three market trends drive collaborative value networks to the next level
Three market trends drive collaborative value networks to the next levelThree market trends drive collaborative value networks to the next level
Three market trends drive collaborative value networks to the next levelARC Advisory Group
 
Connected car solutions: one of the major business drivers for the automotive...
Connected car solutions: one of the major business drivers for the automotive...Connected car solutions: one of the major business drivers for the automotive...
Connected car solutions: one of the major business drivers for the automotive...Pierre Audoin Consultants
 
Cisco_Services_dynamics_magazine_issue_5-2012
Cisco_Services_dynamics_magazine_issue_5-2012Cisco_Services_dynamics_magazine_issue_5-2012
Cisco_Services_dynamics_magazine_issue_5-2012Vimal Suba
 

Similar to 5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5 (20)

A Modern DCS is Essential for Digital Transformation
A Modern DCS is Essential for Digital TransformationA Modern DCS is Essential for Digital Transformation
A Modern DCS is Essential for Digital Transformation
 
REFASHIOND - State of Supply Chain 2022 FULL.pdf
REFASHIOND - State of Supply Chain 2022 FULL.pdfREFASHIOND - State of Supply Chain 2022 FULL.pdf
REFASHIOND - State of Supply Chain 2022 FULL.pdf
 
Redington Value Journal - March 2018
Redington Value Journal - March 2018Redington Value Journal - March 2018
Redington Value Journal - March 2018
 
Digital Transformation Iniciative
Digital Transformation IniciativeDigital Transformation Iniciative
Digital Transformation Iniciative
 
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul JadhavAgile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
Agile Network India | Industry 4.0 - Digital Agility Vade Mecum | Atul Jadhav
 
The smac-code-embracing-new-technologies-for-future-business (1)
The smac-code-embracing-new-technologies-for-future-business (1)The smac-code-embracing-new-technologies-for-future-business (1)
The smac-code-embracing-new-technologies-for-future-business (1)
 
Microsoft Telecommunications Newsletter | May 2021
Microsoft Telecommunications Newsletter | May 2021Microsoft Telecommunications Newsletter | May 2021
Microsoft Telecommunications Newsletter | May 2021
 
Platform Business Models: Implications for Value Creation
Platform Business Models: Implications for Value CreationPlatform Business Models: Implications for Value Creation
Platform Business Models: Implications for Value Creation
 
Cognizanti11-IoT_high-res-print_TL
Cognizanti11-IoT_high-res-print_TLCognizanti11-IoT_high-res-print_TL
Cognizanti11-IoT_high-res-print_TL
 
Automotive Technology Vision 2019
Automotive Technology Vision 2019Automotive Technology Vision 2019
Automotive Technology Vision 2019
 
Comarch Technology Review magazine
Comarch Technology Review magazineComarch Technology Review magazine
Comarch Technology Review magazine
 
CXO Trends
CXO Trends CXO Trends
CXO Trends
 
Autotechinsider March 2010 Newsletter V1
Autotechinsider March 2010 Newsletter V1Autotechinsider March 2010 Newsletter V1
Autotechinsider March 2010 Newsletter V1
 
Dont Get SMACked
Dont Get SMACkedDont Get SMACked
Dont Get SMACked
 
The smac revolution
The smac revolutionThe smac revolution
The smac revolution
 
Realising Digital’s Full Potential in the Value Chain
Realising Digital’s Full Potential in the Value ChainRealising Digital’s Full Potential in the Value Chain
Realising Digital’s Full Potential in the Value Chain
 
Three market trends drive collaborative value networks to the next level
Three market trends drive collaborative value networks to the next levelThree market trends drive collaborative value networks to the next level
Three market trends drive collaborative value networks to the next level
 
Connected car solutions: one of the major business drivers for the automotive...
Connected car solutions: one of the major business drivers for the automotive...Connected car solutions: one of the major business drivers for the automotive...
Connected car solutions: one of the major business drivers for the automotive...
 
Cisco_Services_dynamics_magazine_issue_5-2012
Cisco_Services_dynamics_magazine_issue_5-2012Cisco_Services_dynamics_magazine_issue_5-2012
Cisco_Services_dynamics_magazine_issue_5-2012
 
Insights Success The 10 Most Innovative Automotive Tech Solution Provider Com...
Insights Success The 10 Most Innovative Automotive Tech Solution Provider Com...Insights Success The 10 Most Innovative Automotive Tech Solution Provider Com...
Insights Success The 10 Most Innovative Automotive Tech Solution Provider Com...
 

5b5803e05d3c28d112fad1ac4c268ce7106db2d4.5

  • 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
  • 2. Power at Your Fingertips Brought to You by Dematic Mobile Monitor Access warehouse data whenever and wherever you want with a few taps of your fingers. Dematic Mobile Monitor delivers crucial information via your mobile device, eliminating the need for you to be at your desk, in your warehouse or even the same country to keep your business running smoothly. With information at your fingertips, you have the power to quickly spot potential issues and re-direct your operations to avoid any process delays. Gain overall efficiency and Scan the QR code for a knowledge that enables smarter decision-making. video trip that leads you to a better, smarter future. Dematic Mobile Monitor can unleash your warehouse potential today for a better future now.
  • 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
  • 4. THE RELIABLE, HARDWORKING E B R K PALLET JACKS THAT WON’T A E H LET YOU DOWN. E U O PROBLEM SOLVED. O E We pushed our heavy duty pallet jacks to the limit—1000+ hours in an extreme cold storage application test, emptying 1,300 trailers, moving 50,000 pallets and transporting 105,000,000 lbs. of freight—without lubrication or service. Just the dependability that you’d expect from a world-class manufacturer like Yale. Of course, we don’t recommend you treat your trucks this way. Always follow recommended maintenance intervals. Find out more at Yale.com. 12YLE5275 Yale is a Registered Trademark. is a registered copyright. ©Yale Materials Handling Corporation 2012. All Rights Reserved.
  • 5. VOL. 68, NO. 3 ® PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING Cover illustration by Dan Vasconcellos COVER STORY BIG PICTURE 16 Little things make a big difference Automation is transforming distribution centers. But don’t overlook the little things that can have a big impact on your performance. 60 seconds with... Bob Babel, Forte FEATURES EQUIPMENT REPORT 32 Carts & Casters: Business in motion DEPARTMENTS & COLUMNS As lean sensibilities migrate from the production floor to the 3/ Upfront warehouse, carts, and casters prove a pivotal tool for enhancing the 7/ This month in Modern mobility of product, people, and processes. 12/ Lift Truck Tips: Ergonomics 14/ Packaging Corner: Palletizing READER SURVEY 62/ Focus On: Casters, Carts, Tuggers 24 Industry Outlook: 66/ 60 seconds with... 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 NEWS downturn. Yet, even as planned spending drops off, facility activity is the 9/ Women could be key to filling the highest since 2007— signaling that “doing more with less” has stuck. manufacturing talent gap SHOW REVIEW 10/ STEP Award winners announced 11/ Neeley School of Business announces 26 ProMat 2013: A look at the show A look back at some of the products and services our MS in SCM degree editors saw at ProMat 2013. PRODUCTIVITY SOLUTION 50 Retailer adds modules to WMS to Modern Materials Handling® (ISSN 0026-8038) is published monthly by Peerless Media, LLC, a Division of EH Publishing, Inc., 111 Speen St, Suite monitor and enable growth 200, Framingham, MA 01701. Annual subscription rates for non-qualified subscribers: USA $119, Canada $159, Other International $249. Single Company that took orders by fax 15 years ago now commands 30% copies are available for $20.00. Send all subscription inquiries to Modern Materials Handling, 111 Speen Street, Suite 200, Framingham, MA 01701 market share. USA. Periodicals postage paid at Framingham, MA and additional mail- ing offices. POSTMASTER: Send address changes to: Modern 51 WMS helps bring distribution in-house Materials Handling, PO Box 1496 Framingham MA 01701-1496. Reproduction of this magazine in amid strong growth whole or part without written permis- sion of the publisher is prohibited. After cutting ties with a 3PL, retailer easily handles 50% spikes in daily All rights reserved. ©2013 Peerless Media, LLC. order volume. mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 5
  • 6. www.hyundai-ce.com further! Moving you HYUNDAI FORKLIFT TRUCKS FORKLIFT LINE -UP LPG Forklift 1.5 ~ 5.0Ton Diesel Forklift 1.5 ~ 25Ton Battery Forklift (Counter Balanced) Electric Order Picker 1.6 ~ 5.0Ton 10BOP-7 / 13BOP-7 Reach Truck (Pantograph) Reach Truck (Standing) Reach Truck (Seated) Electric Towing / Platform Truck 1.5 ~ 2.3Ton 1 ~ 2.5Ton 1.4 ~ 2.5Ton 40TA-7 / 15PA-7 HEAD OFFICE(SALES OFFICE) 14th FL., Hyundai Bldg. 75 Yulgok-ro, Jongno-gu, Seoul, Korea Tel. 82. 2. 746. 4753 / 4609 Fax. 82. 2. 746. 7444 / 7445 E-mail. sisky@hhi.co.kr
  • 7. ®® THIS MONTH IN MODERN EDITORIAL OFFICES EDITORIAL OFFICES 111 Speen Street, Suite 200 111 Speen Street, Suite 200 MICHAEL LEVANS Framingham, MA 01701-2000 Framingham, MA 01701-2000 GROUP EDITORIAL (800) 375-8015 (800) 375-8015 DIRECTOR Michael Levans Michael Levans GROUP EEDITORIALDIRECTOR GROUP DITORIAL DIRECTOR mlevans@peerlessmedia.com mlevans@peerlessmedia.com 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 MAGAZINE SUBSCRIPTIONS savviest retailers,” says Trebilcock. “But more sophisticated order fulfillment equip- Start, renew or update your FREE Start, renew or update your FREE magazine subscription at magazine subscription at that engine simply won’t hit its numbers if ment,” says Napolitano. “These steps force www.mmh.com/subscribe. www.mmh.com/subscribe. Contact customer service at: Contact customer service at: inventory doesn’t get off the receiving dock managers to step back and see how they Web: www.mmh.com/subscribe Web: www.mmh.com/subscribe Email: mmhsubs@ehpub.com or orders can’t get through manual packing can better integrate their data with their Email: mmhsubs@ehpub.com Phone: 1-800-598-6067 Phone: 1-800-598-6067 stations to hit shipping cut-off times.” systems and make real-time visibility more Mail: Peerless Media Mail: Peerless Media P.O. Box 1496 P.O. Box 1496 On the theme of often overlooked yet of a reality.” Framingham, MA 01701 Framingham, MA 01701 ENEWSLETTER SUBSCRIPTIONS ENEWSLETTER SUBSCRIPTIONS Sign up or manage your FREE Sign up or manage your FREE eNewsletter subscriptions at eNewsletter subscriptions at www.mmh.com/enewsletters. www.mmh.com/enewsletters. Official Publication of Member Member of Winner Jesse H. Neal Certificates of Merit for Journalistic Excellence www.peerlessmedia.com www.peerlessmedia.com mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 7
  • 9. Follow Modern Online facebook.com/mmhmagazine Twitter | @modernmhmag Web | mmh.com 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
  • 13. The ORIGINAL PIONEERS REVOLUTIONARY by Design After laying the foundation for high-frequency charging, HAWKER continues their tradition of motive power innovation with their patented high-frequency, IONIC smart charging technology. With the greatest efficiency, highest power factor, and highest charge effectiveness available in the industry, HAWKER ’s IONIC patented charge profile reduces your utility consumption and demand while prolonging battery life, reducing water usage, and increasing productivity. Call 1.877.7HAWKER to join the high-frequency IONIC revolution. P.O. Box 808 | 9404 Ooltewah Industrial Drive | Ooltewah, Tennessee 37363 USA PH. (423) 238-5700 | 877-7HAWKER | FAX (423) 238-6060 | www.hawkerpowersource.com
  • 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
  • 15. EXCELLING AT MULTI-CHANNEL ORDER FULFILLMENT BY JASON. FLEXIBILITY ENSURED BY VOCOLLECT. A VOCOLLECT SPONSORED WEBINAR SERIES BUSINESS OPTIMIZATION SMART INNOVATION OPERATIONAL FLEXIBILITY PREMIER EXPERIENCE MODERN MATERIALS HANDLING THOUGHT LEADERS WEBINAR “TRANSITIONING SUCCESSFULLY TO OMNI-CHANNEL FEATURED PRESENTERS: DISTRIBUTION” – PRESENTED BY FORTNA Jason Denmon Multi-Channel Retail Industry Leader Get practical advice on planning and implementing cost-effective, Fortna Inc. multi-channel order fulfillment into your distribution center design and how to optimize your operations. Michael Levans Group Editorial Director MARCH 28, 2013 Supply Chain Group, Peerless Media 2:00 P.M. EST ARE YOU READY TO MAKE YOUR BUSINESS BETTER? Visit www.mmh.com/vocollect to register. © 2013 Intermec IP Corp. All Rights Reserved.
  • 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
  • 19. The fastest-growing companies are making distribution their FORTE. Supply Chain Consulting Delivering optimal performance First-hand experience. Combining throughout the distribution network decades of empirical process and practice knowledge with advanced business intelligence and analytics Supply chain managers must constantly look for ways to improve their tools, FORTE’s consultants provide distribution networks to create differentiation and stay ahead of the powerful and pragmatic solutions to workday problems, as well as competition. At FORTE, our expert consultants engineer and implement for more strategic issues such innovative distribution operations that as network optimization, WMS are flexible, scalable and, above evaluation and 3PL strategies. all, profitable for many of the world’s fastest- growing companies. Keep pace with growth. FORTE helps companies deploy supply chain strategies that enable the most aggressive growth Strive for perfection. Are plans and capitalize on opportunities there delighted customers in the marketplace. We’ll recommend at the end of your supply cost-justifiable process improvements chain? We’ll help you assess and software applications that increase and redesign distribution throughput while reducing costs. systems that yield near- perfect accuracies while reducing fulfillment times from days to minutes. With single-source accountability and total objectivity, FORTE ensures that your customers will experience exceptional service levels. Download white paper Evaluating the Effectiveness of Existing Distribution Operations at forte-industries.com/effective S U P P LY C H A I N C O N S U LT I N G | DISTRIBUTION CENTER DESIGN/BUILD | WAREHOUSE CONTROL SYSTEM SOFTWARE
  • 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
  • 23. WAMAS®- The ULTIMATE WMS Solution Warehouse Management Software for Every Application and Budget Whether your warehouse is entirely manual, fully automated or a combination, WAMAS® by Schaefer Systems provides you with a warehouse management software package with unlimited possibilities. Our software is easy to use, provides real time stock management and efficient inventory control. It allows for synchronization of interdependent processes across your entire distribution system. With over 500 successful implementations worldwide, Schaefer’s software solutions and continuous product advancements allow our customers to rest assued that they will have long term sustainable systems for their warehouse operations. (877) 724-2327 automation.ssi-schaefer.us Schaefer Systems International, Inc.
  • 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
  • 25. Daniel Guidera mmh.com MODERN MATERIALS HANDLING / M A R C H 2013 25
  • 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) Rely On Your Best Resource… You stepLogic Enables You To Do More! Build New Screens Develop New Processes Create New RF Dialogs Create Custom Enhancements Organizations like yours rely on WMS. Yet you are constantly struggling to meet rapidly changing business requirements. At DMLogic, we have decades of experience with WMS. That’s why we created stepLogic. stepLogic is a new software scripting tool that frees your users from the constraints of your existing system. stepLogic expands customization possibilities, simplifies and shortens the process and enables YOU to do more. Scan here to see Hear how our clients are putting stepLogic to use, stepLogic contact us at 412.440.4493. in action Solving Challenges Inside the Four Walls DMLogic designs, installs and supports systems to manage what you do inside your four walls. The DMLogic team of senior consultants excels at process and system design of WMS and MHE systems in virtually every industry, and for companies large and small. For more information, visit: www.dmlogicllc.com
  • 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 I Slip Strip Sl p Str p Aigner Label Holder Corp. Slip Strip 218 MacArthur Avenue New Windsor, NY 12553 Tel: 1.800.242.3919 Fax: 845.562.2638 info@aignerlabelholder.com Call for a FREE Catalog or Samples! www.aignerlabelholder.com