distribution evolution at pds - mmh.com · poirier of csc consulting, and morgan swink of michigan...
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Distributionevolution at PDSpage 14
SPECIAL REPORT
Modern’s Productivity Achievement Awards 23
EQUIPMENT REPORT
New conveyor technologies 30BEST PRACTICES
Evaluating your ergonomics 35
Scott Zurawski, director of warehouse operations and logistics
m m h . c o m
PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION, WAREHOUSING AND MANUFACTURING
February 2010
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mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 3
THE MERGER BETWEEN Diamond Phoenix and System Logistics is complete and the company is now operat-ing as System Logistics Corp. (www.systemslogistics.com), offering customers order fulfillment technology and services. This includes a global system design team, dedicated research and development teams, enhanced concept simulations, and advanced testing and analysis of materials handling data for intra-logistic solutions. With experts in split case, full case and pallet picking coming together, Systems Logistics says the synergy between the companies will benefit customers.
THERE’S A NEW CURRICULUM on the books at Paul d. Camp Community College (www.pdc.edu) in Franklin, Va. The warehousing and distribution center certificate program, an entry-level curriculum designed to equip students and potential employees with the specialized skills needed to work in these operations, was estab-lished in response to the development of the Port of Virginia. As port growth continues, it’s expected that multiple warehouses and distribution centers will be drawn to the area, resulting in the demand for skilled workers. “We want to develop a qualified entry-level workforce for those facilities,” said Bob Hayes, the college’s work force development coordinator.
NACCO Materials Handling Group (NMHG, www.nmhg.com), the fourth largest lift truck supplier according to Modern’s annual ranking, has appointed Northland Industrial Truck Co. (NITCO) as the Hyster
dealer for Connecticut, Maine, New Hampshire, Rhode Island and parts of Vermont and Massachusetts. On Jan. 1, NITCO completed the purchase of the substantial part of the assets for these territories, Hyster New England. NMHG has also appointed Alta Equipment Co. as the Hyster dealer in Western Michigan and Chicago, with the acquisitions of Mid-State Industrial Services in Michigan and the Aurora Lift business in Illinois.
IN THE RECENTLY PUBLISHED “Diagnosing Greatness: Ten Traits of the Best Supply Chains,” Frank Quinn, editorial director of Supply Chain Management Review (SCMR, www.scmr.com), Chuck Poirier of CSC Consulting, and Morgan Swink of Michigan State University highlight 10 common denominators of successful supply chains. Through case studies, they explain how these characteristics translate to higher revenues and lower operat-ing costs. Top traits include: sound supply chain strategy supported by solid leadership; focus on financial metrics; commitment to innovation and process improvement; collabora-tion with selected partners; superior strategic sourcing; excellence in logistics execu-tion; proficiency in planning and responsiveness; high customer integration and sat-isfaction; ability to anticipate and manage risk; and globally optimized operations.
New curriculum at Paul D. Camp Community College
NMHG appoints two Hyster dealers
B R E A K I N G N E W S Y O U S H O U L D K N O W
UPFRONT
Diagnosing greatness
Diamond Phoenix is now System Logistics
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PRODUCTIVITY SOLUTIONS FOR DISTRIBUTION,WAREHOUSING AND MANUFACTURING
VOL. 65, NO. 2
DEPARTMENTS & COLUMNS3/ Upfront7/ This month in Modern13/ Lift truck tips: Fast-charging gains power40/ Product focus: Totes and containers45/ Supplement: Warehouses and distribution centers50/ 60 seconds with...
NEWS8/ Komatsu Forklift to discontinue Tusk brand9/ ALAN brings help to Haiti10/ Preparations continue for ProMat 2011
COVER STORYSYSTEM REPORT
14 Distribution evolution at PDSTo transform its business, Prime Distribution Services turned to case picking technology and lean warehousing strategies. And, that’s just the start of things to come.
20 PDS gets it rightThe 3PL’s new system moves cartons and mixed pallets in a lean and efficient solution.
FEATURESSPECIAL REPORT
23 Productivity Achievement AwardsModern’s annual awards honor companies that have made outstanding strides in improving operations.
EQUIPMENT REPORT
30 What’s new in conveyor technologyThink there’s nothing new about conveyor technology? Think again.
PRODUCTIVITY SOLUTION
34 Robotic tuggerManufacturer uses an autonomous industrial mobile robot tugger to deliver improved productivity, flexibility and inventory handling.
BEST PRACTICES
35 Evaluating your ergonomicsToday more than ever, companies are on the lookout for ergonomics improvements that affect every aspect of the overall working environment.
PRODUCTIVITY SOLUTION
39 Containers cut costsAutomotive brake manufacturer uses collapsible plastic bulk containers to drive improvements in workflow, workspace, ergonomics and quality.
60 seconds with... Jeff Smith, page 50
Scott Zurawski, director of warehouse operations and logistics at PDS, helped transform his company’s operations, page 14
Modern Materials Handling® (ISSN 0026-8038, (GST # 123397457), is published monthly by Reed Business Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Reed Business Information, a division of Reed Elsevier, is located at 360 Park Avenue South, New York, NY 10014. John Poulin, CEO. Circulation records are maintained at Reed Business Information, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Phone (303) 470-4445. Periodicals Postage Paid at Littleton, CO 80126 and at additional mailing offi ces. POSTMASTER: Send address changes to Modern Materials Handling, P.O. Box 7500, Highlands Ranch, CO 80163-7500. Publications Mail Agreement No. 40685520. Return undeliverable Canadian addresses to: RCS International, Box 697 STN A, Windsor Ontario N9A 6N4. E-mail: [email protected]. Please address all subscription mail to Modern Materials Handling, 8878 Barrons Blvd., Highlands Ranch, CO 80129-2345. Rates for non-qualifi ed subscrip-tions including all issues: US, $119.99/yr, Canada, $159.99/yr (includes 7% GST, GST#123397457); Mexico, $159.99/yr; International air delivery, $249.99/yr. Printed in U.S.A. Modern Materials Handling® is a registered trademark of Reed Elsevier Properties Inc. used under license.
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T H I S M O N T H I N M o d e r nEDITORIAL OFFICES225 WYMAN STREETWaltham, MA 02451(781) 734-8000
Michael LevansGroup Editorial Director [email protected]
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Sara Pearson SpecterEditor at [email protected]
Roberto MichelEditor at [email protected]
Tom AndelColumnist
Jeff BermanGroup News Editor
Robert EckhardtSenior Art Director
Daniel GuideraSenior Art Director/Illustration
Norman GrafDirector of Creative Services
Brian CeraoloGroup Publisher
EDITORIAL ADVISORY BOARD
Ron Giuntini OEM Product-Services Institute
John HilleSync
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REED BUSINESS INFORMATION
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This year’s Productivity Achievement Award winners perfectly defi ne the pioneering spirit that Modern pro-
motes in its monthly System Report. In fact, I would say that the winners we’re celebrat-ing on page 23 embody the two key char-acteristics that we tend to fi nd in companies that that push the innovation envelope inside and outside of the four walls.
First, each of these visionaries has made advanced materials handling and distribution a core component of the company’s greater supply chain mission. And second, each of this year’s winners has a history of continuous innovation inside their operations—even dur-ing the worst economy of their lifetimes.
Kroger, the winner in this year’s Warehous-ing/Distribution category, rang in as one of my favorite case studies over the course of 2009—and hit a high note with our edito-rial advisory board as well. In this tale, the grocery giant shares how it has embraced automation and revolutionized its distribu-tion process to the point that it’s building store-ready mixed pallets with very little hu-man intervention.
One of my favorite parts of the Kroger story is that the end result—a fully auto-mated, truly “lights out” facility— was the culmination of over more than eight years of consistent improvement projects with a defi ned, long-term goal in mind.
This year’s Manufacturing winner, Fisher Nuts, is a terrifi c example of a forward-think-ing company that made conventional use of materials handling technologies and uncon-ventional use of its warehouse management system (WMS). While the company manages inventory and directs warehouse employee activity with its WMS, it’s also putting the
technology to work to synchronize deliver-ies and track lot numbers to keep close tabs on the raw nuts, spices, and oils that go into each specifi c batch.
Fisher now boasts 99.7% inventory accu-racy in the warehouse and 99% on the factory fl oor. It’s also been able to eliminate two of four physical inventories a year. So, not only has its WMS improved productivity, but the enhanced accuracy has become the founda-tion of one of the better allergen and contam-ination prevention programs in the industry.
Our Innovation winner, The Greater Boston Food Bank (GBFB), is not only the feel-good story of the year, but it exemplifi es the posi-tive impact that materials handing and smart facility design can have on a community.
After realizing the GBFB was running out of space, chief operation offi cer Carol Tienken made a commitment to stay put in the Boston community and create a facility that would help the organization do a better job while respecting the environment and its workforce. Tienken and her group created a distinctive, energy-conscious DC packed with cutting-edge automation and data collec-tion technology. This advanced facility now distributes between 600,000 and 700,000 pounds of food a week to 600 non-profi t food providers in eastern Massachusetts—enough to feed 83,000 people a week.
“This year, our winners stood out for the diversity of the solutions they employed, ev-erything from automated materials handling to warehouse management software to a design focused on sustainability,” said Mod-ern executive editor Bob Trebilcock and the author of these three System Reports. “These stories highlight the creativity that is a hallmark of our industry.”
Setting the pace
MICHAEL LEVANSGROUP EDITORIAL
DIRECTOR
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MMH100201_Viewpoint_ID 7 2/11/2010 10:14:41 AM
KOMATSU FORKLIFT U.S.A. recently announced its decision to discon-tinue the sale of the Tusk brand of lift trucks as of July 31, 2010. Last year, Komatsu was ranked No. 8 on Modern’s list of top lift truck suppli-ers, reporting $1.15 billion in world-wide sales in 2008. But, all compa-nies, even the top ones, are being affected by this bad economy.
“This was a diffi cult, but neces-sary, strategic decision for Kom-atsu Forklift,” said Akira Yamakawa, Komatsu’s president. “For a number of years, Komatsu Forklift has been manufacturing forklift products under both the Tusk brand and the Kom-atsu brand and maintaining separate channels of distribution for each. The prolonged tough economic condi-tions required us to closely examine doing business in this fashion. After careful consideration, we have de-cided to discontinue the Tusk brand in order to be able to focus all of our resources on our core Komatsu brand. We believe that focusing on a single brand and a single channel of distribution will result in increased effi ciencies and cost savings and
represents the better strategy for achieving long-term growth and prof-itability for shareholders.”
Only fi ve years ago Komatsu add-ed Tusk to its line. Its goal at the time was to revamp the company’s dealer support system. Dealer development
manager Tom Thomas was quoted as saying, “The era of superior dealer support is here, and we are commit-ted to putting resources behind the Tusk brand.”
Then, less than one year ago Komatsu announced the consolida-
LIFT TRUCKS
AFTER FIVE YEARS, THIS LEADING LIFT TRUCK SUPPLIER HAS DECIDED TO FOCUS ALL OF ITS RESOURCES ON ITS CORE KOMATSU BRAND.
Komatsu Forklift to discontinue Tusk brand of lift trucks
BY TOM ANDEL, CONTRIBUTING EDITOR
Company Briefi ngs | Bob Trebilcock Getting back to warehouse basics www.mmh.com/blog/basics
Takeaways | Tom AndelWant to sell lift trucks in China? Hire Jeffrey. www.mmh.com/blog/China
Di@blogbest of Modern’s blogs
8 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING m m h . c o m
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tion and restructuring of its North American manufacturing operations. Komatsu’s forklift production opera-tion was moved from Covington, Ga., to Komatsu’s Newberry Manufactur-ing Operation in Newberry, S.C. The company said the move would allow Komatsu to take advantage of avail-able synergies, reduce overall opera-tional expenses, and more effectively utilize assets.
Putting the Tusk announcement in this context, dealers will also have to be thinking about more effectively using their assets. That might mean fi lling out product offerings with lines they’d never considered before. Last year Jungheinrich’s Class 1, 2, and 3 lines were added to Mitsubishi dealers’ Class 4 offerings. The ability to offer customers one-stop shopping is the goal. One-brand allegiance is not al-ways compatible with that goal. Dealer exclusivity is starting to go away, at least among the smaller dealers.
Ken Van Hook, president of Safe-T-Consultants in Humble, Texas,
used to be manager of Mitshubishi Caterpillar Forklift America’s (MCFA) product safety standards group. He has keen insights into the implica-tions of the Komatsu announcement for dealers and customers.
“If I’m a dealer selling the Tusk brand, now my local CAT dealer who had a brand equal to that has an opportunity to say ‘Do you really want a dealer who wants to sell you a Daewoo here and a Komatsu there? You won’t know what he’ll be offering next year.’ This is an opportunity for the smaller guys to mass together and offer brands across the board. That means an OEM from China could come in and make a killing right now. If they don’t, the big boys will take their business away.”
Deals are being made today for tomorrow’s business. You can bet Komatsu will be fi ghting to stand their ground in the Top 10. But don’t be surprised to see some new play-ers challenge their position.
LOGISTICS
ALAN brings help to Haiti THE AMERICAN LOGISTICS AID NETWORK (ALAN, www.alanaid.org), a non-profi t humanitarian aid organi-zation that engages the supply chain community in relief efforts at home and abroad, is helping the victims of the earthquake that recently hit Haiti.
Since the 7.0 earthquake hit in January, ALAN has been working with major humanitarian relief agencies, in-cluding the National Voluntary Orga-nizations Active in Disaster (NVOADs), Federal Emergency Management Agency (FEMA) and the American Red Cross to identify relief needs.
Immediately following the earth-quake, ALAN president Jock Menzies told Modern that it was in the rescue and assessment stage. He said, “As we’ve seen in the past, it takes a few days for discreet needs to be defi ned.”
As specifi c needs are identifi ed
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that can be met by the ALAN membership base, they are being posted at www.alanaid.org. Needs for supply chain expertise, products, equipment and services such as transportation, warehousing and materials handling are matched with available donations.
ALAN provides a primary point of contact for the U.S. logistics industry’s donation activity and information. The organization works to ensure that donation needs are
made visible to the logistics industry and creates an ef-fi cient process for providing the right goods and services at the right location, at the right time.
Menzies said he started receiving calls from industry colleagues within an hour after the earthquake was re-ported. “We heard from a lot of supply chain profession-als who are ready to support the relief efforts with their available resources,” he said. “This is such a large scale disaster that there will be signifi cant needs for a signifi -cant period of time, but we will be at the forefront of this effort for as long as it takes.”
“ALAN was founded by the associations that make the supply chain effi ciently operate on a daily basis,” said John Nofsinger, CEO of Materials Handling Industry of America, (MHIA, www.mhia.org). “When a disaster like the Haiti earthquake strikes, we believe that it is our unique responsibility to utilize these same resources and expertise to help ensure that the necessary aid gets where it is needed as quickly as possible.”
MHIA is one of the founding member of ALAN, as is the Material Handling Equipment Distributors Association (MHEDA, www.mheda.org), which is also committed to the relief effort and will send information out to members as it becomes available. “MHEDA members are very generous and have always wanted to help in relief ef-forts,” said Liz Anderson, MHEDA executive vice presi-dent. “Through ALAN, this will be a very concerted, well organized effort that gets materials and contributions of safety equipment, earth moving equipment, even cash donations to the right place.”
EVENTS
Preparations continue for ProMat 2011PROMAT 2011 (www.promatshow.com) isn’t scheduled un-til March of next year, but the Material Handling Industry of America (MHIA, www.mhia.org) is already well into the planning process. One of the fi rst planning milestones is the ProMat Exhibit Spacedraw, which was held on Jan. 21.
“This was a very well attended event and got the ball rolling for ProMat 2011,” said Tom Carbott, MHIA vice president of sales and events. “We are excited and en-couraged by the level of participation in the spacedraw.”
Another big announcement followed. MHIA and the Automation Technologies Council (ATC) recently said the upcoming ProMat 2011 and The International Robots, Vision & Motion Control Show will co-locate. Both exhibi-tions will be held March 21-24, 2011 at Chicago’s McCor-mick Place. ATC is the umbrella group for Robotic Indus-tries Association (RIA), Automated Imaging Association (AIA), and Motion Control Association (MCA). ProMat 2011 will take place in the South Hall and the International
Much-needed relief supplies arrive in Haiti. They are unloaded
and staged at the airport before making their way to the city.
MMH100201_news_ID 10 2/9/2010 2:48:01 PM
things are getting better for our industry,” said Carbott. “Some members are already experiencing improvement while others are optimistic that 2011 will show improve-ment.” This year, the top fi ve picks went to Raymond Corp.; Jervis B. Webb, a wholly owned subsidiary of Daifuku Co.; Kiva Systems; SSI Schaeffer; and Yale/Hyster.
While Carbott acknowledges that 2009 was diffi cult fi nancially, he says, “I see 2010 as a ‘plus’ year. We see a very measured recovery with 2011 getting back to where we were in 2008. Participating as an exhibitor at ProMat 2011 will be a great opportunity to get back in front of what we anticipate will be a pretty good recovery.”
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Manufacturing industries started the new year with a bang, according to the Institute for Supply Manage-ment’s (ISM’s) January survey. The index that ISM uses to monitor the sector, or PMI, rose 3.5 points to 58.4% in January. Norbert Ore, chair of ISM’s Manufacturing Busi-ness Survey Committee, said he was a bit surprised by how high the PMI jumped. “I expected a good number, but 58.4 is a particularly strong number,” he said. New orders and production are also up, with production jumping 6.5 points in January to 66.2%.
DID YOU KNOW…Robots, Vision & Motion Control Show will take place in the North Hall. While they are two separate events, one regis-tration will allow attendees to visit both venues.
The decision to co-locate the two shows was made for several reasons, said John Nofsinger, MHIA’s CEO. “Co-locating the two events will allow manufacturing, distribution and supply chain professionals unparalleled education and networking opportunities as well as expo-sure to the largest equipment and technology display of any show of its kind in North America. In today’s world of needing to be nimble and innovative, the co-location is a home run for participants and attendees of both events.”
“Robotics, vision and motion control are important components as companies strive to reach their productiv-ity goals,” said Jeffrey Burnstein, president of ATC. “We feel this co-location provides an incredible opportunity for the exhibitors and visitors of each show to meet new prospects and suppliers, see new products, and obtain new knowledge.”
Talks of co-locating the two events had been under-way for some time, Carbott told Modern. “We’re very pleased it has come to fruition. Today, the name of the game is value. Since these events complement each other, they are a good fi t and we believe this will add value to both the exhibitors and the attendees.”
The co-located ProMat and International Robots, Vision & Motion Control Show will be the largest international event and conference of its kind held in the U.S. More than 825 exhibitors are expected to showcase solutions to tens of thousands of manufacturing, warehousing and distribu-tion professionals from more than 100 countries.
SpacedrawMore than 340 companies attended the spacedraw, claim-ing almost 80% of the available exhibit space and securing their position at ProMat. The in-person participation painted a very positive picture for ProMat 2011 and the industry as a whole. “We are convinced that this is an indication that
ProMat 2011 and the International Robots, Vision & Motion
Control Show will co-locate at McCormick Place next March.
MMH100201_news_ID 11 2/9/2010 2:48:14 PM
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Find news, features, case studies, white papers, etc., from around the web on the most signi cant topics in materials handling:
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m m h . c o m MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 13
Sometimes the most powerful mixtures are made from inert elements. Take fast-charging and 80-volt lift
trucks, for example. Neither of those elements has been a potent force in U.S. markets. However, the need for better energy effi ciency and more powerful performance may be the catalysts for combining them to form a new solution.
I’ve talked with several lift truck suppliers who either are or will be introducing 80-volt products into their lines. The demand for a more carbon-friendly alternative to internal combustion engine (IC) models is on the rise. For many IC stalwarts, the only thing keeping them from adding their voices to that demand is the idea of allocat-ing the space and time to manage battery changing and charging. That’s where fast-charging delivers its potency.
John Aker, president and chief technology offi cer of Aker Wade Power Technologies (www.akerwade.com), told me that with the larger 36- and 48-volt batteries most commonly used in the U.S., two SBX-350 cables are required to deliver more than 320 amps of fast-charging current. With an 80-volt battery you can use one cable connector because at 320 amps you can deliver more than 30 kW of fast-charge energy. Reducing the cost of the battery coupling and cabling may make fast-charging more attractive to a wider market.
And so may eliminating the need to change out bat-teries. Another factor keeping users in the United States away from 80-volt lift trucks is infrastructure. In Europe the 80-volt batteries are typically removed from above by crane—not with the side extraction methods used for 36- and 48-volt batteries.
According to Blake Dickinson, head of applications engineering and customer satisfaction for AeroVironment (www.avinc.com), even if you invested in a crane system it would take more time to change a battery using a crane than with a side extraction system. “With opportunity fast-charging you eliminate the need for that,” he says.
Another element that could further sweeten the deal is the use of lithium-ion batteries. While lead acid will probably remain the battery of choice for one- and two-shift operations, Aker believes heavy-use three-shift operations will eventually be the tipping point for cost
justifying lithium-ion batteries in lift trucks.“Once lithium-ion batteries hit the $10,000 point for
an 80-volt 500 kW hour capacity cell, it may replace lead acid,” he says. “At $10,000 you’re about twice the cost of lead acid, but the battery will charge much faster, so you’ll only need one. For three-shift operations it makes more sense than buying two lead acid batteries and swapping them out.”
Incentives from power providers may also help. That could start happening as more lift truck dealers partner with their local energy companies to meet with their customers to show the potential savings from not only switching from gas to electric, but from old style batteries to new style batteries and to opportunity fast-charging. Power company account managers may then even offer incentives.
Fast-charging gains power
Opportunity fast-charging and an 80-volt battery may give electric
lift trucks more of the capacity and performance attributes of
internal combustion trucks.
The prospect of cutting greenhousegases, combined with technological advances, is making fast-charging more attractive.
LIFT TRUCK TIPSTOM ANDEL,
COLUMNIST
Contact Tom Andel at [email protected].
mmh100201_lifttips_ID 13 2/8/2010 12:24:19 PM
Distribution evolution aBy Bob Trebilcock, Executive Editor
To transform its business, Prime Distribution Services turned to
case picking technology and lean warehousing strategies.
And, that’s just the start of things to come.
Prime Distribution Services understands that ideabetter than most companies. A third-party logistics(3PL) provider headquartered near Indianapolis inPlainfield, Ind., PDS was founded 20 years ago to offerdistribution services to vendors of the club store ser-vices supply chain. And, since most of PDS’s customersare food vendors, they are more likely than most to payattention to logistics costs.
During the last 20 years, PDS has built a businessout of reducing those costs by providing food vendorswith a single point of distribution that incorporateswarehousing, crossdocking, packaging and multi-ven-dor freight consolidation into their supply chain.
As the retail distribution chain has evolved, so hasPDS. Where the company once primarily handled fullpallets coming in and going out of its facilities, in recentyears, the company had seen the demand grow for thejust-in-time delivery of mixed SKU pallets. That calledfor more efficient operations and new capabilities to effi-ciently build mixed pallets.
Last year, working with a systems integrator(Bastian Materials Handling, 800-837-3760, www.bastiansolutions.com), PDS combined an estimated1 million square feet of conventional warehousespace spread across several locations in Indianapolisinto a single 1.2 million square foot facility. Andwhere the old operations were paper-driven, thenew facility includes automated systems to facili-tate greater control over inventory, more responsive
order management, and two case-pick modules tofacilitate the efficient building of mixed SKU pal-lets. Automated materials and information handlingsystems include:• A state of the art warehouse management system
(WMS) to manage inventory and direct pickingoperations;
• Two picking modules, including a multi-level mez-zanine with 600 pallet flow rack positions and apick-to-display picking solution and a single-levelpick module that features 180 pallet flow locationsand 320 carton flow pick faces along with a pick-to-display picking solution;
• Scan tunnels to automatically scan bar code labelsand verify and automatically route cartons afterpicking; and
• A conveyor and sortation system to divert orders topacking and verification stations.
Although the system only went live last year, PDSis already seeing improvements in productivity andaccuracy, according to Scott Zurawski, director ofwarehouse operations and logistics. More importantly,he describes the system as the first step of severalphases to improve operations across the company andbetter serve its customers.
“Our leadership and our organization are gearedtoward a lean warehousing operation,” says Zurawski.“We’re trying to build sustainability and quality intoevery process.”
HIRD-PARTY LOGISTICS AND WHOLESALE FOOD and grocery distribution share one thing in common: both industries operate on razor thin margins. That puts a premium on squeezing as much cost as possible out of warehousing, distribution and transportation operations. T
SYSTEM REPORT modern
14 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
MMH100201_Sys1_ID 14 2/9/2010 11:09:04 AM
n at PDS
Scott Zurawski, director of warehouse operations and logistics
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MMH100201_Sys1_ID 15MMH100201_Sys1_ID 15 2/9/2010 11:09:14 AM2/9/2010 11:09:14 AM
Evolving from day oneEvolution and reinvention have been partof PDS’s story since 1990 when the com-pany began operations in a 10,000-square-foot facility. From the start, PDS focusedon providing truly cost-effective distribu-tion programs that assisted vendors whowere often competing for market sharewith much larger companies that consis-tently shipped truckload volumes.
In just a few years, PDS expandedthe original facility to 32,000 square feetbefore adding remote facilities totaling60,000 square feet. In 1995, growth tookoff again when PDS began to offer LTLconsolidation services to club stores froma new 105,000-square-foot facility. By2001, when PDS took on retail consoli-dation, it had expanded to nearly 350,000square feet of warehouse space. Today, inaddition to the Plainfield distribution cen-ter, PDS also operates a 260,000-square-foot facility in Mesquite, Texas, and a311,000-square-foot facility in Stockton,Calif. All three distributions centers areAIB (American Institute of Baking) certi-fied with superior ratings.
“Our primary focus was and is LTLconsolidation for retail vendors, espe-
cially food vendors,” says Zurawski. “Theyship their inventory to us, and we’ll pickand ship consolidated truck load ordersto their retail customers while maintain-ing 99% on time delivery.”
Those vendors save money by ship-ping one full truckload of their productto PDS instead of paying extra to shipmultiple LTL shipments to their custom-ers; they also benefit because PDS has
the systems and expertise to meet retail-ers’ labeling and shipping requirements.Vendors benefit by having a single pointof distribution for their retail outlets, low-ering their inventory requirements.
In addition, PDS offers transpor-tation services to its clients and is aSmartWay Transport partner, a part-nership of transportation and truckingcompanies that is dedicated to greeninitiatives for trucking.
Designing for successWhile the company has focused onLTL consolidation from day one, priorto 2001 most of materials handlingactivity was bulk handling: The 3PLreceived, warehoused and shippedfull pallets. In the facility, pallets werestored in racks or on the floor, with verylittle case picking or mixed-SKU palletshipments. PDS also built point-of-pur-chase display pallets for club stores.
The mix of business began to changein 2001, when PDS took on nationalretail LTL consolidation. Instead ofthe bulk display pallets favored by club
16 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
SYSTEM REPORT modern
Automation, including conveyors, enable the shift from full to mixed SKU pallets.
Operators are directed by lights in a carton picking area.
MMH100201_Sys1_ID 16 2/9/2010 11:09:28 AM
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 17
stores, traditional retailers wanted toreceive mixed pallets on a replenish-ment schedule. That allowed them tominimize the amount of inventory theykept on hand at any given time. By2005, with the retail consolidation busi-ness growing, PDS had added a total of520,000 square feet to its operationsin Indianapolis, operating from severalfacilities in the area.
Two years later, the companybegan the process of combining theIndianapolis operations into a 1.2 mil-
lion-square-foot facility in Plainfieldthat went live in 2009.
The majority of the facility, whichincludes 160 dock doors and 360 trailerstorage spaces and features 170,000square feet of temperature-controlled
space (60°F to 65°F), is still used forbulk storage. But about 15% of thebuilding—some 150,000 square feet—is devoted to the two pick modules.
“We still need a significant amountof space for reserve and secondarystorage,” says Zurawski. “But most ofour activity now is building mixed pal-lets with purchase order-level label-ing. That allows a retail DC to breakthe pallet down according to individualstores.” While most received inventoryis put into reserve storage for pickingand shipping later, PDS does crossdocksome inventory as it’s received.
The shift from full pallet to mixedpallet handling was a driving force inthe design of the new facility. In the oldfacility, lift truck operators spent a lotof time traversing the building to buildmixed pallets off a lift truck. What’smore, since the facility operated in apaper-based environment, accuracywas often dependent upon the skill ofthe driver and a manual audit.
“In the old system, we would manu-ally choose a location for putaway andthen create a map of where productwas stored,” says Zurawski.
For that reason, one of the first
SYSTEM REPORT modern
Stretch wrapped pallets are delivered to the shipping area for delivery.
Cartons are sorted to pallet buildingstations.
Conveyor and sortation technology is used in two different picking modules.
MMH100201_Sys1_ID 17 2/9/2010 11:09:41 AM
18 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
SYSTEM REPORT modern
tasks for the new facility was to imple-ment a warehouse management system(WMS). “We wanted system-directedputaway that would receive against apurchase order and capture lot controldata and expiration dates so we wouldhave improved rotation and inventorycontrol,” says Zurawaski.
The second step was to reduce traveltime by consolidating picking into thetwo pick modules. The multi-level unitfeatures four-deep pallet locations andis reserved for the fastest-moving SKUs.The single-level unit uses two-deep pal-let locations for less-active SKUs andcarton flow rack for the slowest-movingitems. A high-speed conveyor and sorta-tion system routes the cartons to a pal-let-building and pack verification area.
This fully automated operation usesforward pick faces for case picking,allowing for full pallet secondary inven-tory, which increases inventory accuracyand improves product rotation. Productidentity is verified by bar code in a multi-directional scan tunnel that allows veri-fication of manufacturer level bar codingof all kinds and locations.
Verified product is sorted at highspeeds and finished pallets are builtin a completely custom-built pallet
assembly system that includes heads-up display of pallet level informationfor accuracy verification while eachcustomer purchase order is built perindividual item specifications. Palletsare stretch-wrapped before being deliv-ered to a shipping lane where all of thepallets for an order are consolidated.Future expansion includes RFID inline label capabilities.
In addition to improving inventorycontrol, the WMS is also important topicking and replenishment operations.“Once you go to a forward-pick opera-tion, you can no longer manually replen-ish your pick faces,” says Zurawski. “Youneed to have a WMS that can dynami-cally replenish pick faces in a real-timeenvironment.”
Next stepsThe new solution may just have beeninstalled last year, but according toZurawski, he and his team at PDSare already looking to the future. “Weare very comfortable with what we’veaccomplished, but the concept of con-tinual improvement is challenging usto reinvent ourselves and make moreimprovements,” he says.
The work that led to the new facilitywas the first stage, designed to combinethree stand-alone facilities in Plainfieldand to introduce automated materialshandling, RF-enabled data collection,and materials handling automation tothe operation. Now that those havebeen accomplished, the tools are inplace to drive lean warehousing prac-tices, increase sustainability and buildadditional quality into every process.“We’re striving to become a world-class logistics company,” says Zurawski.“We’re ready to focus on lean and greeninitiatives.”
One example: PDS is alreadyrethinking its receiving and shippingoperations relative to lean practices.“Instead of one large receiving and ship-ping area, we will create four smallerquandrants with receiving, putaway,picking, shipping and crossdocking ineach quadrant,” he says. “This facilityredesign will improve the services weoffer our clients.”
System suppliers
SYSTEMS INTEGRATION AND MEZZANINE:
Bastian Materials Handling, 800-837-3760,
www.bastiansolutions.com
WAREHOUSE MANAGEMENT SYSTEM:
ASAP Automation, 800-409-0383, www.
asapauto.com
CONVEYOR AND SORTATION: Hytrol
Conveyor Co., 870-935-3700,
www.hytrol.com
PALLET RACK AND PICK MODULES:
WireWay Husky Corp., 800-438-5629,
www.wirewayhusky.com
STRETCH WRAPPERS: Wulftec International,
877-985-3832, www.wulftec.com
YARD MANAGEMENT SYSTEM: Cypress
Inland Corp./YardView, 303-862-9899,
www.yardview.com
BAR CODE SCANNING: Accu-Sort Systems,
800-227-2633, www.accusort.com
At the shipping area, full and mixed SKU pallets are loaded onto trucks for delivery.
MMH100201_Sys1_ID 18 2/9/2010 11:10:01 AM
w
www.mmh.comBookmark www.mmh.com as your daily resource for:
Breaking news Latest product information Resource center for
white papers & case studies Educational videos, virtual
conferences and webcasts Career opportunities Blogs from materials
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MMH100201_Ads.indd 19 2/11/2010 12:58:28 PM
20 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
SYSTEM REPORT modern
By Bob Trebilcock, Executive Editor
PDS gets it rightThe 3PL’s new system moves cartons and mixed pallets in a lean and
efficient solution.
PDS, A THIRD-PARTY logistics provider, implemented a warehouse management system, conveyor, sortation and two pick modules to expand its retail case picking capabilities.
Receiving: The receiving process begins at the gatehouse, where a guard verifies a driver’s paper-work. Using that information, a yard management and warehouse management system (WMS) creates a dock assignment. When the trailer is unloaded in the receiving area �, product is received in the WMS against a pre-receipt already in the system. At that time, any lot or expiration date information is also captured and entered in the system. The WMS creates a pallet label and chooses a putaway location in the bulk storage area �.
Putaway and replenishment: Once a put-away location has been chosen, a lift truck opera-tor is directed to a floor or pallet rack location in the bulk storage area �. The product is now avail-
Illustration b
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uidera
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Pallet building andpack verification
5
Shipping
6
ConveyorStretch
wrapper
6Conveyor3
Pick module
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Pick module 1
Receiving
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Bulk storage
2
Bulk storage
7Conveyor/sorter line
Prime Distribution SystemsPlainfield, Ind.SIZE: 1.2 million square feet
PRODUCTS AND SERVICES: Third-party logistics, including warehousing and distribution and LTL freight consolidation of products for the retail food industry
SKUS: 10,000 SKUs for some 200 customers
THROUGHPUT: Approximately 800 million pounds of freight per year
EMPLOYEES: 240
SHIFTS: 5 days a week, 2 shifts per day
MMH100201_Sys2_ID 20 2/9/2010 10:43:52 AM
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mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 21
SYSTEM REPORT modern
able for full pallet picking from bulkstorage, or to replenish a pick facein one of the two pick modules �.Replenishment operators are loggedinto a pick zone. Whenever a palletis consumed, the WMS generates anorder to replenish that pick face. Thesystem directs the operator to pull apallet from the bulk storage area �and to replenish that pick face �.Replenishment operators may also bedirected to build mixed pallets fromthe bulk storage area that will be usedto replenish picking locations in thecarton flow rack with one to 10 cases,based on predetermined replenish-ment points. Operators confirm thecompletion of a replenishment opera-tion by scanning a bar code.
Picking: Customers may placeorders for full pallets, mixed pallets ora combination of the two. PDS’s WMSreleases the orders and directs the pick-ing to create a consolidated load. Mixedand full pallets for that order will bedelivered to a shipping lane assigned forthat load.
• Full pallet picking: Full pal-lets are picked by a lift truck operatorworking in the bulk storage area � anddelivered first to the pack verificationarea �. Once the order is verified, thesystem generates a shipping label that isapplied to the pallet. It is then deliveredto the shipping lane � assigned to that order.
• Mixed pallet picking: Orders for mixed pallets are delivered to one of the two pick modules �. Operators are directed by the system to pick the required number of cases from each pick location for that order. Cases are placed onto a conveyor �. After a car-ton passes through a scan tunnel, it is sorted � to a packing lane � where a pallet is being built. Once the pallet is complete, it is stretch wrapped � and then delivered to the packing station � for verification. It’s then delivered to the shipping lane � assigned to that order.
Shipping: Whether they are han-dling full or mixed pallets, operators
scan a pallet to a shipping lane �when they drop them off. Once thesystem determines that all the pal-lets for an order are in a lane, a lifttruck operator is tasked with load-ing a trailer according to a plan thatmaximizes the load. The operator
scans the pallet bar code label and atrailer ID label next to the dock doorto associate that pallet with thattrailer. Once the trailer is loaded,it’s staged in the yard and the trafficdepartment routes an outbound car-rier for delivery.
MMH100201_Sys2_ID 21 2/9/2010 2:49:13 PM
Join your material handling peers for an eye-opening industry conference on adapting to the new rules of business.
There is no more “business as usual” in today’s world. Customers expect more, employees are doing more and leaders need to know more. Material handling executives understand that to survive they must lead their company with cutting edge sales, marketing and technology knowledge. The Material Handling Equipment Distributor Association’s Annual Convention will provide the platform to better understand the current marketplace.
It’s now more critical than ever to network with your peers and learn what others are doing to thrive in a tough environment. Make it part of your 2010 plan to attend MHEDA’s Convention.
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MMH100201_Ads.indd 22 2/9/2010 12:29:31 PM
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 23
Modern’s annual Productivity Achievement Awards honor com-
panies that have made outstanding strides in improving operations through materials handling and related informa-tion systems. Modern’s editorial advisory board chose this year’s winners from a dozen candidates.
Companies were judged for their abil-ity to deliver top-level customer service, respond rapidly to changing conditions, deliver orders that meet customer require-ments, and improve operations. In addi-tion, the innovation award celebrates a facility that employed a solution that defies convention.
PRODUCTIVITY AWARDSmodern
AchievementAwards
This year’s winners are:
Warehousing/DistributionKroger
ManufacturingFisher Nuts
Innovation
The Greater Boston Food Bank
Productivity
MMH100201_prodaward_ID.indd 23 2/9/2010 10:57:49 AM
Grocery giantchanges the gameEight years ago, Kroger created a new design for grocery distribution. Today, the grocer is building store-ready mixed pallets in an automated environment.
IN THE NOT SO DISTANT PAST, most grocery distribution centers made due with labor intensive, traditional materials handling technologies and processes. Pallets were moved by lift trucks and stored in racks. Mixed pallets were built the
old fashioned way, with manual labor.
24 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
PRODUCTIVITY AWARDSmodern
For some leading grocers, those days are history. The same industry that led the way in the adoption of warehouse manage-ment and labor management systems, wireless bar code scanning and voice technology is now adopt-ing automated materials handling in a big way.
The Kroger Company is one of those indus-try leaders. About eight years ago, it began work-ing with a systems integrator (Witron Integrated Logistics Corp., 847-385-6113, www.witron.com) to create a new design to automate its grocery DCs. The end result was a system that can receive and putaway full pallets, then break them down and rebuild them into store-ready mixed pallets according to how they will be put away on the shelves in a store aisle. It all happens with almost no human intervention: Operators typically touch a product once when lift truck operators unload pallets at the receiving dock and once again when they are loaded at the shipping dock for delivery to stores.
The system uses: • Automatic pallet exchange and depalletizing
machines, • A 10-crane unit load automated storage and
retrieval system (AS/RS) with approximately
21,000 pallet positions for reserve storage, • A 32-aisle mini-load AS/RS with nearly 400,000 tray posi-
tions for temporary storage of cartons prior to order fulfillment,
• Transfer vehicles that deliver pallets from the system induction area in receiving to a pallet exchange station and from the conveyor sys-tem to the AS/RS crane selected for putaway, and
• A unique system that automatically builds mixed pallets in the sequence they will be stocked on shelves in a specific store aisle; the system uses a separate mini-load system for buffer storage, a custom-designed palletizer to place the cartons on the right spot on the pal-let, and an automatic stretch wrapper. In all, Kroger processes about 110,000 cases
per day with a peak capacity of 160,000 cases in the first facility built with the new design in Arizona.
“When we began working with our system integrator to create this design, we were look-ing for a paradigm change in grocery warehous-ing,” says John Winkels, Kroger’s senior director of logistics engineering and network strategy. As Winkels’ title suggests, the design was part of a long-term supply chain strategy. After going live with the Arizona facility, Kroger built a second
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KROGER:
Read the complete article at: www.mmh.com/article/kroger
MMH100201_prodaward_ID.indd 24MMH100201_prodaward_ID.indd 24 2/9/2010 10:58:27 AM2/9/2010 10:58:27 AM
facility in Colorado and is in the processof building a third using the same designin southern California.
Founded 126 years ago, Kroger is oneof the best-known names in Americanbusiness. Like most of its competitors, formany years it had been a traditional gro-cery logistics and distribution company.The grocery industry, however, is incred-ibly competitive, operating on razor-thinmargins. Any reductions in operatingcosts in warehousing, order fulfillmentand transportation go right to the bottomline. For that reason, Kroger set out to re-engineer the way it distributes product toits stores.
“The philosophy that most of ourindustry has taken is that you need tobe close to your store base with yourfacilities,” says Winkels. “We wanted tolook at our network and rethink that.Surprisingly, cycle times and throughputwere not major issues for the new design.Kroger was able to meet its throughputrequirements in its traditional warehousesby adding labor. Instead, Kroger wanted asolution that would address some of themajor long-term challenges of operatinga grocery distribution center.
The first was to efficiently deal withSKU proliferation. A second was toefficiently build a mixed case pallet for
individual stores. Finally, Kroger wanteda system that would address the chang-ing warehouse industry workforce. AfterKroger identified its high-level supplychain priorities and the operational chal-lenges it wanted to address, Winkels saysit was clear that materials handling auto-mation was the way to go. The solutionincorporates a number of familiar auto-mated materials handling technologies.
What’s unique is how those famil-
iar technologies come together to buildaisle-aligned pallets. The case ordermachine, for instance, takes cases fromthe mini-load and places them in a bufferstorage system that then delivers them insequence to the palletizer; that machineuses a unique series of arms to maneuvera carton into the right position on a pal-let before delivering the finished pallet toan automatic stretch wrapper. “The trickisn’t to build an AS/RS or a mini-load,”says Winkels. “The trick is to seamlesslyconnect the pieces. What’s special aboutthis solution is the way the software coor-dinates pulling the pallets out of the AS/RS, dictates how much product needsto be placed in a mini-load tray, andsequences the delivery of the cartons tothe palletizer.”
Kroger measures its success in severalways. “Our orders are more accurate andwe have reduced product damage, whichmeans we’re getting more of the productour customers want to the store in a sell-able condition,” says Winkels. “What’smore, it has provided us with significantlogistics efficiency. We’re not just moreefficient in the warehouse, we’re makingbetter utilization of the cube of the trailerand making our stores more efficient.The impact can be felt across our supplychain.”
System suppliers
SYSTEM DESIGN, INTEGRATION AND
IMPLEMENTATION, PALLETIZER AND
WAREHOUSE CONTROL SYSTEM:
Witron Integrated Logistics Corp.,
847-385-6113, www.witron.com
CONVEYOR SYSTEM, TRANSFER CARS
AND AS/RS CRANES: TGW-Ermanco,
231-798-4547, www.tgw-ermanco.com
RACKING: Nedcon, 513-367-2656,
www.nedcon.com
DEPALLETIZERS: Univeyor, 651-229-3401,
www.univeyor-us.com
STRETCH WRAPPER: Strema Packaging
Machinery (Italy), 39-045-6661376, www.
strema-machines.com
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 25
Kroger’s facility uses very few workers to build store-ready mixed pallets.
MMH100201_prodaward_ID.indd 25 2/9/2010 10:58:44 AM
In addition to managinginventory and directing the activ-ities of warehouse employees,the WMS (HighJump Software,800-328-3271, www.highjump.com) performs two unconventional roles.
The system synchronizes the delivery of a billof materials to the manufacturing line. It includesthe raw nuts, spices and oils, and packaging mate-rials that go into a particular batch of product. TheWMS also tracks the lot numbers of all of theingredients and materials used to make a batch ofproduct to meet traceability requirements. Moreimportantly, the WMS is the foundation of thecompany’s allergen and contamination preventionprograms.
There have been several key benefits to this sys-tem, according to Jasper Sanfilippo Jr., the compa-ny’s president and chief operating officer, and TomKirkham, the director of systems implementation.Thanks to the WMS, inventory is 99.7% accuratein the warehouse and 99% accurate on the manu-facturing floor. “As a result of that accuracy andthe cycle counting functionality in the WMS, wehave been able to eliminate two of four physicalinventories a year,” says Kirkham. “That’s savingus nearly $2 million a year.” And, the companybelieves it has one of the most comprehensiveallergen control programs in the nut industry.
With $550 million in sales,John B. Sanfilippo & Son hasa nearly 90-year history in thenut business. In 1991, the com-pany went public, and in 1995,
it purchased the Fisher Nuts brand from Proctor& Gamble. Today, the company processes anaverage of 600,000 pounds of nuts each day, andships 375,000 cases of nuts per week during peakseason. By 2005, the company’s operations werespread across five different facilities in a 10-milesquare area in suburban Chicago.
The company was bumping up against capacityconstraints that would hinder its ability to continueto grow. “We needed space so we could increasethe capacity of our existing line without increasingour overhead, and we needed to standardize pro-cesses for quality control reasons,” adds Kirkham.“If you’re operating in five buildings, it’s not hardto end up with five different processes.”
The company had already purchased land andwas working with consultants on the design ofa new headquarters when a 1.06 million squarefoot building came up for sale in Elgin, Ill. In theend, reconfiguring an existing space was fasterand more efficient than building a new space.Rawmaterials and finished goods are primarily handledon pallets with lift trucks and stored in palletracks. As a result, determining how to best use the450,000 square feet of raw materials and finishedgoods warehouse space was the most importantaspect of the initial design. That included two
PRODUCTIVITY AWARDSmodern
At its new manufacturing plant and corporate headquarters, John B. Sanfilippo & Son installed a warehouse management system to drive quality and productivity improvements.
When John B. Sanfilippo & Son Inc., manufacturer of the Fisher Nutsand various private label brands of nut products, reconfigured a 1.06 million square foot complex in Elgin, Ill., for its new corporate head-
quarters, it made conventional use of materials handling technologies and uncon-ventional use of its warehouse management system (WMS).
WMS cracksinto manufacturing success
26 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
JOHN B. SANFILIPPO & SON/ FISHER NUTSELGIN, ILL.
FISHER NUTS:
Read the complete article at: www.mmh.com/article/fishernuts
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cooler areas for the storage of raw mate-rials, separate areas for spices, cans, jarsand corrugated materials, and the fin-ished goods warehouse.
The company was able to economizeon materials handling equipment by re-using push-back and standard pallet rackleft behind by the previous tenant alongwith equipment it brought over from itsold facilities. Likewise, a horizontal carou-sel system used to store packaging mate-rials for the production line was broughtover from one of the other warehouses.
While the materials handling was rela-tively simple, Kirkham and Sanfilippo saythat from the start, they understood thata WMS was critical to the success of thenew facility. In addition to the traditionalinventory management functionality aWMS could provide, Sanfilippo & Sonwanted the ability to manage raw materi-als on a first-in/first-out (FiFo) basis, to dolot tracking and to manage the company’sallergen and contamination program.
At any given time, Sanfilippo & Son ismanaging two different types of peanutsand up to eight different types of treenuts. Because nut allergies can be fatal,peanuts must be segregated from othertypes of nuts. Since dust or broken pieces
can leak from a container of raw nuts,only one type of tree nut can be stored ina bay. Likewise, the introduction of rawmaterials into the production area has tobe controlled to prevent the spread of sal-monella and other bacteria.
One of the goals for the new facilitywas to inspect all raw materials beforemoving them off the receiving dock. Ifun-inspected product is put away intoone of the coolers, the system will put ahold on that product so it can’t be pro-cessed until it’s inspected.
Once the manufacturing processbegins, the WMS is the system of recordwhere all of the transactions take place. Itreceives a work order from the ERP sys-tem and a bill of materials that includesall of the raw materials, seasonings, oiland packaging materials required for thatwork order. Raw materials are selected inpart on a FiFo basis. The WMS directsthe delivery of those items to the rightworkstations. It also tracks the item level,quantity and lot numbers of everythingassociated with that work order to meettracking and tracing requirements.
Once product has been manufac-tured, the WMS creates a new stockkeeping unit (SKU) for the finished good.The system is used to direct palletizingoperations and the delivery of a pallet toa stretch-wrapping system. Once it’s beenstretch-wrapped, the WMS receivesthe new product into the finished goodswarehouse, which is zoned by customerand then into full pallet and case pickingareas. After that, picking and shippingfunctions are handled by the system simi-larly to any other system shipping foodinto the grocery or big box retail supplychains. That includes the managementof any custom labeling requirements oradvanced shipment notifications (ASNs).
Jasper Sanfilippo Jr., the fourth gen-eration of his family to work in the busi-ness, says the new facility has been asuccess: Inventory is now better than99% accurate, eliminating two physicalinventories each year. While harder tomeasure, there’s success as a result of thecompany’s allergen program. “Ultimatelythat will lead to more business,” saysSanfilippo. “That’s hard to quantify nowfrom an ROI perspective, but we couldnot have done that without the systemswe put in place.”
System suppliers WAREHOUSE MANAGEMENT SYSTEM:
HighJump Software, 800-328-3271,
www.highjump.com
ENTERPRISE RESOURCE PLANNING SYSTEM:
QAD Inc., 888-641-4141, www.qad.com
SYSTEM DESIGN: Tom Zosel Associates,
800-229-3450, www.tzaconsulting.com
LIFT TRUCKS: Crown Equipment Corp.,
419-629-2311, www.crown.com
ROBOTIC PALLETIZER: Kuka Robotics,
866-873-5852, www.kukarobotics.com
CAROUSELS: White Systems, 800-275-1442,
www.whitesystems.com
STRETCH WRAPPER: Lantech, 800-866-
0322, www.lantech.com
RACKING: Existing rack system from
previous tenant
HANDHELD BAR CODE SCANNING:
Intermec, 425-348-2600, www.intermec.com
PRINTERS: Zebra Technologies,
847-634-6700, www.zebra.com
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 27
Tom Kirkham, director of systems implementation.
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PRODUCTIVITY AWARDSmodern
Distributiondoing goodIn its new 117,000-square-foot DC, The Greater Boston Food Bank is applying materials and information handling best practices to feed more than 83,000 people from underserved communities each week.
This past spring, a 117,000-square-foot distribution center opened its doors in Boston’s Newmarket Business District, a revitalized industrial area on the city’s south side. Carol Tienken, chief operating officer of The Greater Boston Food
Bank (GBFB, 617-427-5200, www.gbfb.org), was focused on creating a facility that would allow the organization to grow while respecting the environment.
Tienken worked with anarchitect to create an energyefficient building that shehopes will warrant LEED silvercertification. She worked with asystems integrator (DistributionDesign, 800-679-3233, www.distdesign.com) toincorporate warehousing and distribution bestpractices and automation technologies.
While the organizations featured in Modernare usually for-profit businesses, The GreaterBoston Food Bank is one of the top 15 non-profit food banks in the country. The new YawkeyDistribution Center, which went online in mid-April 2009, was designed to distribute up to 50million pounds of food a year to non-profit agen-cies that feed the hungry. The new facility willaccommodate anticipated growth over the next15 years.
The GBFB operates like a regional, wholesalegrocery DC serving large and small grocery stores.In this case, GBFB put together a conventionalwarehouse augmented by automated materials
handling and data collectionincluding:• 6,000 pallet storage loca-tions,• a state-of-the-art con-veyor system for sorting
product, and• a warehouse management system (WMS) and
data collection system linked to the organiza-tion’s order management system. The systemprovides near real-time visibility into the inven-tory in the facility so that non-profits can placeorders online.
GBFB also added energy-saving features focusedon sustainability including:• a translucent spine that runs the height of the
building to allow in natural light,• a masonry wall with black facing that attracts
sunlight and naturally generates heat that canwarm the facility on cold days, or be vented onwarm days, and
• high-efficiency lighting, motors and refrigera-tion units.Tienken and her colleagues stress that this is
a functional warehouse, designed to get the workof the facility done safely and efficiently. “We
28 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
INN
OV
AT
ION
WIN
NE
R
THE GREATER BOSTONFOOD BANKBOSTON, MASS.
THE GREATER BOSTON FOOD BANK:
Read the complete article at: www.mmh.com/article/bostonfoodbank
MMH100201_prodaward_ID.indd 28 2/9/2010 10:59:51 AM
deal in pallets, cases and pounds,” saysTienken. “And we drew on the experi-ence of warehousing professionals whohave been in the business for years,including the Warehousing Educationand Research Council (WERC, 630-990-0001, www.werc.org), which hasbeen a good friend to us.”
Incorporated in 1982, the GBFBbegan by distributing about 100,000pounds of food a year from the base-ment of a church and the back of a sta-tion wagon. Today, GBFB distributesbetween 600,000 and 700,000 poundsof food a week to about 600 non-profits.
The genesis of the new facility wasan analysis performed in 2003 by A.T.Kearney, a global management consult-ing firm. Meanwhile, the food bank’sboard wanted the organization to con-tinue to grow to serve the growing needsof the regional population. To do that,GBFB needed a bigger facility. As thearchitect, systems integrator and con-tractor began working on a design, sev-eral priorities were kept top of mind.
Efficiency was important. Like anyother distributor, “we wanted to mitigateour costs to operate the building andreduce the number of times we touchedthe product,” says Tienken. Safety was
key. At any given time, the people in thebuilding are a mix of trained staff, vol-unteers and non-profit agencies pickingup their orders. Build it green but withcharacter. From the start, it was impor-tant that the facility be environmentallysustainable and socially responsible.
From a materials handling standpoint,the building includes three separatereceiving areas to handle different typesof food products. In each case, the pal-let storage areas for those products aredirectly behind the receiving areas. Theprocess not only ensures that tempera-ture-sensitive food is always in a con-trolled environment, it also minimizes thenumber of times the product is handled.
The food bank also receives productsgleaned from grocery store shelves. Thosemight include products that are neartheir expiration date, are out of season,or aren’t selling well. And since some ofthe product will be discarded, it must bekept separate from other product until it’sbeen inspected, sorted and repalletized.
To meet those goals, the facility cameup with a design that incorporates a sepa-rate receiving and pallet storage area, and
a second-floor sorting area. The processis enabled by a materials lift that deliv-ers pallets from storage to the sortingarea, a conveyor system that routes theboxes of product received from grocersto workstations where product is sortedand re-boxed, as well as a takeaway con-veyor that delivers the salvaged merchan-dize back to a palletizing area on the firstfloor.
All told, the process uses just 8,000square feet between the two floors; theconveyor system not only conservedspace on the second floor, it also kept thematerials handling equipment out of thegeneral flow of pedestrian traffic.
Opportunity battery chargers, ergo-nomic pallet lift tables, and inflatabledock levelers all contributed to the cre-ation of a safer, more efficient work envi-ronment. Tienken says it’s too soon tomeasure how much more efficient thenew facility is compared to the old build-ing. ”We’re still teaching our people howto do things in the new building,” shesays. “But, because this is a much moreuser-friendly building, we hope we’ll seeless turnover and absenteeism in our per-manent staff. We’re already getting kudosfrom our agencies.”
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 29
Carol Tienken, chief operating officer.
System suppliers ARCHITECT: Chan Krieger Sieniewicz,
617-354-5315, www.chankrieger.com
MATERIALS HANDLING SYSTEM DESIGN:
Distribution Design, 800-679-3233,
www.distdesign.com
PALLET RACKING: Ridg-U-Rak,
866-479-7225, www.ridgurak.com
CONVEYOR: Automotion, 708-229-3700,
www.automotionconveyors.com
LIFT TRUCKS: Raymond, 607-656-2311,
www.raymondcorp.com; Clark Material
Handling, 859-422-6400, www.clarkmhc.com;
Hyster Co., 800-497-8371, www.hyster.com
PALLET JACKS: Toyota Industrial Equipment,
800-226-0009, www.toyotaforklift.com
WAREHOUSE MANAGEMENT AND DATA
COLLECTION SYSTEMS: ASC Software,
937-429-1428, www.ascsoftware.com
LIFT TABLES: Southworth Products, 800-
743-1000, www.southworthproducts.com
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w
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If you haven’t purchased a new con-veyor system in the last five years orso, you might think the book was
closed long ago on conveyor technology.After all, how tough can it be to powersome rollers and move a carton fromhere to there, right?
If you’re talking about a basic rollerconveyor in a small factory or distribu-tion center, maybe that’s true. But onceyou get beyond the basics, the next gen-eration of conveyor systems and con-trols is addressing the needs and con-cerns of today’s increasingly complexand automated manufacturing and dis-tribution environments. Several factorsare at work, say industry experts, whocite the need by end users to handlemore throughput with less equipmentand a growing emphasis on energy sav-
ings and sustainability. But those aren’tthe only factors.
“The incremental growth of Internetsales is pushing companies to handle moreindividual items than cartons and pallets,and we’re seeing changes in packaging,”says Phil Kaffenberger, vice president ofproduct development for HK Systems(262-860-7000, www.hksystems.com).“Both of those are impacting the way com-panies operate their conveyors.”
In addition to changes in productsand packaging, order fulfillment bestpractices, like the increasing use ofcrossdocking, automated storage andretrieval systems (AS/RS) and the grow-ing demand for mixed SKU pallets arealso shaping the next generation of con-veyor technology, says Ken Ruehrdanz,distribution and warehousing market
By Bob Trebilcock, Executive Editor
Think there’s
nothing new
about conveyor
technology?
Think again.
EQUIPMENT REPORTmodern
What’s newin conveyor technology
MMH100201_Eqp_ID 30 2/9/2010 10:41:39 AM
manager for Dematic (877-725-7500, www.dematic.com). So is the rapid change of business. “For businesses to accommodate changes in market con-ditions, volumes or other unforeseen conditions, logistics operations need to adjust,” Ruehrdanz says. “That means all the material flow systems, includ-ing conveyor technology, must adjust accordingly.”
Here are some of the most common trends identified by some of the leading
providers of conveyor equipment, sys-tems and controls that are driving the conveyor market today.
Conveyor modernization: A well-designed, well-built conveyor system hasan operational life expectancy of 15 or 20years. During that time, however, yourbusiness processes and materials han-dling systems are likely to change. Not toworry, says Ruehrdanz. “There are a num-ber of options that can modernize andextend a conveyor system’s life.” First,worn rollers that produce excess noiseor damage side frames can be replacedwith new rollers. Mechanical sensor roll-ers can be replaced with electronic sens-ing that allows lighter weight cartons toconvey and improve carton control. Lineshaft conveyors can be upgraded to motordriven rollers (more on this later) thatoffer sleep modes, accumulation modes,variable speed control and improved car-ton flow. Finally, traditional pulley motorassemblies can be replaced with a motor-ized pulley that will reduce energy usageand sound levels and maintenance costs.
Do more from less: “Increasingly,our customers tell us they want to do
more with less,” says Kevin Klueber,associate product manager forIntelligrated (877-315-3400, www.intelligrated.com). “That means ourconveyors need to be more versatile.”One way to more with less is to sim-ply go faster, which has led to conveyorspeeds of 700 to 750 feet per minute.
Another approach is to use software,sensors and electronics to close the gapbetween products on the conveyor andto dynamically control the speed of theconveyor system to match the through-put required for a shift. Reducing thegap between products allows an end userto move more cartons at the same speed.And dynamically controlling the speedallows you to minimize energy consump-tion and wear and tear on the system.
“You can now input your throughputfor the day, and the system will calcu-late the speed you need to run to matchthat throughput,” says Klueber. “Thatallows you to better utilize your space,and it reduces maintenance since you’renot running the system at full speed allthe time.” Smarter controls combinedwith new roller and belting systems isallowing end users to conveyor smallercartons, envelopes and poly bags that
Conveyors speeds now reach more than 700 feet per minute in high throughput facilities.
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 31
Extendable conveyors like these can be adjusted to the right height for ergonomic loading and unloading.
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previously didn’t work on roller con-veyor. “The list of non-conveyables isshrinking,” Klueber says.
Getting smarter with software:The real strides in conveyor technologytoday are not mechanical, an area whereimprovements are incremental. They’rebeing made in the electronics and soft-ware that control the systems, says saysDel Deur, director of product develop-ment for carton and case conveyor forTGW-Ermanco (231-798-4547, www.tgw-ermanco.com). That’s resulting notjust in better performance, but also bet-ter monitoring and reporting.“One area we’re focusing onis dashboards that will tellyou what’s going on in vari-ous pick modules, or what
kind of throughput you’re getting duringthe shift compared to where you needto be to hit your numbers,” says Deur.“At another level, we’re using camera-based systems in some of our conveyorsto capture what’s going on.” If a systemjams, Deur adds, an operator can reviewthe tape to diagnose what happened tocause the jam and then take correctiveactions to prevent it in the future.
Bring on the belts: The increasein piece picking along with changes inpackaging are resulting in an increasein alternatives to roller conveyors. “Oneof the changes you’re seeing is a movefrom corrugated to blister packs,” saysHK Systems’ Kaffenberger. “And withsingle line orders, we’re handling small-er and smaller packages.” That’s result-ing in an increase in belt and plastic
top chain conveyors that can accommo-date small packaging. “We’re also see-ing a higher use of belted motor drivenconveyors to accommodate accumula-tion in piece picking operations,” saysKaffenberger.
Green conveying: A tough econo-my has put a premium on cost contain-ment and an increasing interest in sus-tainability. Both are creating demandfor motor driven roller conveyor(MDR). In these conveyors, each rolleris powered by an energy-saving, 24-voltmotor inside the roller. “The post officehas seen a 60% energy savings in par-cel-handling applications, and we haveseen savings of up to 90% in some com-mercial applications,” says Rich Kosik,senior vice president for Itoh DenkiUSA (888-310-8811, www.itohdenki.com). Those savings come in part fromthe low voltage motors. But it’s alsobecause MDR conveyors can run ondemand, operating only when productis on the conveyor. Users can also varythe speed of the conveyors, operating at300 feet per minute on a busy day or100 feet per minute on slower days.
What’s more, MDR providers aredeveloping smart rollers that can moni-tor the operation of the system for pre-dictive maintenance purposes. “Wehave developed a smart roller with anembedded memory chip that can keeptrack of the hours of operation andcurrents,” says John Mosher, solutiondevelopment manager for Holjeron(971-224-1600, www.holjeron.com).“If a roller is using too much current, itmight mean that it’s the wrong size roll-
er for that application. Butit might also mean that theroller is beginning to fail.”
The ergonomic con-veyor: Most conveyors are used in place of ware-house personnel. But on the receiving and shipping docks, the loading and unloading zones, convey-
A series of belt conveyors is used to create a precise gap between cartons. The speed of each belt can be adjusted to open or close a gap between cartons.
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Each roller in a motor driven roller conveyor contains its own low voltage motor, saving up to 60% in energy costs.
MMH100201_Eqp_ID 32 2/9/2010 10:41:58 AM
ors that extend into trailers and ship-ping containers interface with humans.“In those areas, we are where the rub-ber hits the road,” says Mark Rehder,general manager and vice president forCaljan Rite-Hite (303-321-3600, www.caljanritehiteus.com). “On the docks,ergonomics and safety are as impor-tant as throughput speeds.” Thoseconcerns are being addressed in sev-eral ways, including guarding, labelingand enclosed designs that minimizethe number of pinch points where afinger or garment might get caught inthe conveyor. It’s also reflected in theability to adjust the conveyor height toplace the parcel at an ergonomic loca-tion for the operator at the dock. “You’llnow see conveyors using hydraulicelevation control and articulated beltsystems that allow any individual to putthe conveyor at the right height,” saysRehder. In addition, conveyor providersare also combining conveyors with vac-uum-assist lifting devices that can liftbags, cartons and boxes from a trailerfloor or pallet. “All the operator has todo is guide the parcel onto the convey-or,” says Rehder.
What goes up: Most people useconveyor for horizontal travel. Verticalreciprocating conveyors (VRCs) areused to transport parts, products,subassemblies and work-in-processfrom one level of a facil-ity to another. “VRCs are asafe and efficient methodof getting material from oneelevation to another eleva-tion,” says Todd Canham,lift product manager forWildeck (800-325-6939,www.wildeck.com). “They
allow companies to make better useof their floor space by using the spaceoverhead.” An electronics manufac-turer, for instance, uses a VRC totransport materials from the manu-facturing floor to a testing facilityand then back to the ground level toa packing station. “It’s an easy wayto move material while reducing lifttruck traffic,” says Canham. A newgeneration of VRCs that use direct-acting lift technologies and eliminatecables and sprockets provides simpleand reliable vertical lifting for lowusage situations.
Modular conveyors come intotheir own: End users are increasinglylooking for flexibility from automatedmaterials handling equipment, includ-ing conveyor systems. That has led tothe development of modular conveyorsthat can be easily reconfigured if needschange. “With a modular conveyor, youcan start out with a flat module but lateradd an incline or expand the length of theconveyor,” says Jill Batka, general man-
ager for Dynamic Conveyor(800-640-6850, www.dynam-icconveyor.com). “The mod-ules are pieced together withscrews and braces that easilysnap together.” These systemsare ideal for light-to-mediumapplications, with weights of100 pounds or less and speedsof 60 feet per minute or less.“These types of solutions areespecially suited to manufac-turing lines, since manufac-turers are often reconfiguringtheir facilities to accommo-date new products and pro-cesses,” says Batka.
Not all carousels are horizontal. Vertical reciprocating conveyors efficiently and safely transport goods to multiple levels.
Modular conveyors can be easily reconfigured when needs change, like a new manufacturing line.
EQUIPMENT REPORTmodern
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 33
MMH100201_Eqp_ID 33 2/9/2010 10:42:17 AM
The Daimler Trucks North America parts man-ufacturing plant in Gastonia, N.C., supplies
its assembly plants with components like battery boxes, clutches and brakes. This amounts to nearly 20,000 part numbers, totaling more than 30 million pieces each year.
As the company was preparing for growth and implementing continuous improvement initiatives like just-in-time and 5/S, it needed a parts delivery system to address efficient workflows for its small fasteners.
Daimler began “Flex Mart,” a centralized parts inventory service where staff members receive new parts, manage orders, and fill totes to be delivered to the line. While the new system resolved one set of issues, it created another. It didn’t have enough workers to reliably deliver the fasteners to the line. Additionally, transportation of the parts was time
consuming, inaccurate, and despite high levels of stock, production frequently experienced part shortages.
Daimler needed a flexible, cost-effective delivery system to support its three-shift operation six days a week. The solution was an autonomous robotic tugger (Seegrid, 877-733-4743, www.seegrid.com) that uses patented industrial mobile robotics tech-nology to independently move through the facility. The tugger uses stereo cameras to build a 3D map of the environment and its own reasoning ability to navigate a predetermined path to complete its transport task.
The easy-to-use robotic tugger can support the company’s growth without the need for increased labor. It reduces waiting time by 22%, cuts trans-portation time to the line from an hour to 20 to 30 minutes and virtually eliminates inventory deficits. And, because of its versatility, the tugger can per-form multiple routes for the first and second shifts then be changed to do a completely different route for the third shift.
“We needed flexibility to change the routes eas-ily and frequently and the [robotic tugger] does that for us,” explains Donnie Dixon, supervisor of mate-rials control. “That flexibility alone provided us real value.”
ROBOTIC TUGGER
Truck parts manufacturer uses an autonomous industrial mobile robot tugger to deliver improved productivity, fl exibility and inventory handling.
By Lorie King Rogers, Associate Editor
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PRODUCTIVITY SOLUTIONmodern
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mmh.com MODERN MATERIALS HANDLING / N O V E M B E R 2 0 0 6 35
Today more than ever, companies are on the lookout for ergonomics improvements that affect every aspect of the overall working environment—from what we breathe to how we move.
BEST PRACTICESmodern
Evaluating yourergonomics
E R G O N O M I C S
Eight O’Clock Coffee installs ceiling fans that improve environmental conditions for workers in its coffee processing plant.
Page 36
Thomas & Betts employs freestanding workstation cranes that move steel trays safely and eliminate worker injury.
At Pitney Bowes, reusable plastic containers seal the deal on enhanced ergonomics, lower costs and improved efficiency.
Page 37
Page 38
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Ceiling fans
The Eight O’Clock Coffee roasting plant inLandover, Md., roasts, grinds and packs morethan one million pounds of coffee every six
weeks. And while the smell of fresh coffee is a wel-come aroma to most, it overwhelmed the employeesin the hot manufacturing plant where air movementwas sluggish and air conditioning was nonexistent.
Operating 16 hours a day, the 100,000-square-footmanufacturing floor is equipped with roasting andpacking equipment that generates excess heat insidethe building. “With no air conditioning in here, theair was not moving,” says Joseph Wright, the compa-ny’s maintenance coordinator. A few workers benefit-
ed from small floor fans scattered around the plant,but the fans did not provide complete air circulation.Since much of the roasting equipment stands about20 feet high and the racks of packaging materials
nearly reach the 40-foot ceiling, air circulation wasseriously obstructed.
The company’s solution was to install a number offans (Big Ass Fans, 877-244-3267, www.bigassfans.com) throughout the facility. In the open areas, twoceiling fans now provide an overall cooling effect—onefan spans 24 feet in diameter and the other spans20 feet. In the packing department, two strategicallymounted compact, adjustable 6-foot pivot fans providedirectional airflow in tight spaces. The key to the effec-tiveness of the fans is their ability to move massive vol-umes of air slowly using 1 to 2 horsepower motors.
The ceiling fans provide quiet, gentle, round-the-clock cooling for the workers as well as the storedcoffee product. In addition to improved comfortand ergonomics, the company has also experiencedimproved economics. The fans provide a low-costcooling solution that dehumidifies stagnant air in thesummer and reduces the company’s carbon footprintin winter months by bringing down and recirculatingheated air that rises to the ceiling.
Eight O’Clock Coffee installs ceiling fans to improve conditions for workers in its coffee roasting operations.
In the open areas, two ceiling fans now provide an overall cooling effect.
By Lorie King Rogers, Associate Editor
provide coolingcomfort
36 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
E R G O N O M I C SBEST PRACTICESmodern
In the packing department, two strategically mounted compact, adjustable 6-foot pivot fans provide directional airflow in tight spaces.
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Workstation cranes
Thomas & Betts manufactures more than 30,000electrical, mechanical and utility products foruse virtually everywhere electricity is used.
The company’s facility in Edmonton, Alberta, buildsaluminum and steel cabletrays that resemble exten-sion ladders that range insize and weight, maxingout at 20 feet long and 130pounds.
In the last stage of man-ufacturing, workers per-form the final welds thenlift the trays onto a cart tobe prepared for shipping.The best way to lift thetrays is from both ends atone time. The problem isthat the trays are heavy,long and difficult for oneperson to lift.
“They are awkward topick up,” says Ken Conrad,maintenance coordinator.“The way you have to bendand lift the trays puts a lotof strain on your back. Ifthe same person did thatjob all day they’d be hurtingby the end of the shift.”
The problem was evident and productivity wasdecreasing. Additionally, five lost-time injuries eachyear were attributed to this task. So, Thomas & Bettsinstalled a freestanding workstation crane (Gorbel,800-821-0086, www.gorbel.com) to safely lift andtransport the trays.
The crane system measures 20 x 30 x 17 feet talland has two aluminum bridges, each with a 165-poundcapacity. The crane features remote mounted pendanthandles attached to the master unit that controls the
movement of two handles simultaneously. The bridgesmove easily and independently along the runways sothat one worker can lift even the longest, heaviest traysfrom both ends at once while guiding it to the cart.
“Reducing product damage was important, butit was a secondary compared to the safety of thepeople handling the products,” says Conrad. Sinceinstalling the freestanding crane system, produc-tivity is consistently high and workers are no longerat risk of injury.
By Lorie King Rogers, Associate Editor
Canadian utility manufacturer employs freestanding workstation cranes that move steel trays safely and eliminate worker injuries.
Thomas & Betts installed a freestanding workstation crane to safely lift and transport the steel trays that the company manufactures.
lighten the load
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 37
E R G O N O M I C SBEST PRACTICESmodern
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Reusable plastic containers
Pitney Bowes serves the financial industry withthe printing and mailing of monthly state-ments and reply envelopes for millions of
consumers. In its facility in Antioch, Tenn., PitneyBowes workers manufacture and print about 38 mil-lion standard business-sized and reply envelopeseach month. Once the materials are printed, theyare packed and stored in corrugated boxes until theyare ready for use.
But the limited-use corru-gated boxes were delivering theirown set of challenges for theworkers and for the company’sbottom line. For the company, itcost more than $69,000 to pur-chase the boxes and even morein labor to break them downand bail them for recycling. Forthe workers, the lack of handlesmade the boxes very difficultto grip and handle. That cre-ated the potential for repetitivemotion injuries. The boxes alsopresented a significant risk ofinjury to employees during theunpacking process because sharp box cutters had tobe used to cut away the box flaps.
Pitney Bowes management team recognized thatreusable plastic containers (Orbis Corp., 800-890-7292, www.orbiscorporation.com) could be imple-mented to address all areas of concern: safety, ergo-nomics, cost and efficiency.
After analyzing a number of options, the Antiochmanufacturing facility chose a straight-wall modu-
lar container to move and storeprinted materials. With con-toured, easy-to-grasp ergonom-ic handles, the standardizedcontainers are easy to handleand significantly reduce theemployees’ exposure to repeti-tive motion injuries. They areeasy to palletize, create stable
stacks and provide the cube efficiency required tomaintain high levels of productivity. And because thecontainers are made of plastic, gone are risks posedby box cutters and corrugated materials in the aisles,so overall safety is greatly improved.
After introducing 7,000 plastic containers into theoperation, Pitney Bowes achieved a financial paybackin just nine months, and a 430% return on invest-ment over a five-year service life.
At Pitney Bowes, reusable plastic containers seal the deal on enhanced ergonomics, lower costs and improved efficiency.
Pitney Bowes implemented plastic containers to address all areas of concern: safety, ergonomics, cost and efficiency.
By Lorie King Rogers, Associate Editor
deliver safetyand savings
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E R G O N O M I C SBEST PRACTICESmodern
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PBR, LOCATED IN COLUMBIA, S.C., suppliesautomotive brakes to giants like Chrysler, Fordand General Motors. But after in-depth internalanalysis, PBR determined it was spending moretime hauling the containers housing the brakecomponents than moving the actual components;not very efficient for an otherwise lean and cost-conscious organization.
The manufacturing process is simple: createthe brake components, ship them out for plating,receive the plated components back, and deliverthem to the assembly line. While the empty binswere sent back through the manufacturing andassembly process, finished goods were packagedand shipped to customers. However, workers werespending about 10 hours every week manuallymaneuvering the totes from one area of the plantto another on air-powered conveyors. PBR neededto speed up the process and find a more efficientworkflow with less handling.
The solution came in the form of customizable,collapsible containers (Buckhorn, 800-543-4454,www.buckhorninc.com). These reusable plasticcontainers have durable sidewalls and high-strengthbases for product protection and four-way lift truckaccess for safe and efficient transport. Once PBRdetermined that the 32 x 30 x 25-inch bulk con-tainers were right for closed-loop shipping to thecompany’s plating supplier and easy delivery to theassembly line finishing operations, it began switch-ing out its tote and conveyor system. The companyalso designed custom carts to hold the containersfor easy transport throughout the operation.
The results have exceeded PBR’s goals ofimproving materials handling performance,increasing productivity and building on lean ini-tiatives. The containers were put in place for animmediate, smooth workflow transition withoutchanging the floor layout. In fact, the companyhelped achieve a cleaner, safer area by eliminatingmore than 100 conveyors. PBR has freed up evenmore floor space because the stacking of loaded orcollapsed containers saves space compared to theconveyor system. The containers have also lead toimproved workflow by cutting batch sizes in half.And, most importantly, with fewer people handlingthe brake components throughout the productionprocess, overall product quality has improved.
CONTAINERS CUT COSTS
Automotive brake manufacturer uses collapsible plastic bulk containers to drive improvements in workfl ow, work-space, ergonomics and quality.
By Lorie King Rogers, Associate Editor
PRODUCTIVITY SOLUTIONmodern
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Totes and containers
100% recycled shelf bins reduce waste, increase productivity
The EarthSaver series of eco-friendly plastic storage and organization shelf bins for small parts organization boosts workplace productivity. Made of 100% recycled material, the bins come in three color options: hunter green, sandstone and terra cotta. Easy to label for quick inventory iden-tification, the bins are ideal for use in manufacturing, healthcare, retail and distribution applications. The bins may be used alone or combined with the supplier’s steel shelving, wire shelving and pick racks to create a complete storage system. Akro-Mils, 800-253-2467, www.akro-mils.com.
Plastic totes for automated mini-load systems
All-plastic ML6040 reusable totes are ideal for picking and order fulfillment in automated mini-load
Wire meshcontainer holds 2,200 poundsCapable of nest-ing with containers from other suppli-ers, this wire mesh container measures 48 x 40 x 38 inches and holds 2,200 pounds. It is offered with or without 5 x 2 inch polyurethane casters, two rigid and two swivel. For easy access to contents, a half-drop front gate is positioned on the 48-inch side. When empty, the containers collapse to a height of 12.5 inches. They can be stacked four high with product and up to 30 high when collapsed. Optional accessories include a secu-rity top, spring loaded shelf, vertical divider, horizontal shelf and caster brakes. Carico Cowin, 800-466-6738, www.caricocowin.com.
Fiberglass reinforced containers for heavy parts
For work-in-process, assembly and storage applications, fiberglass reinforced containers are offered in five footprints from 6.3 x 4.9 to 20 x 13.9 inches, with heights up to 8.1 inches. To handle heavy, dense parts and materials, the stack-only and nest-only containers are compres-sion-molded using high strength fiberglass reinforced polyester resin. Features include use in tempera-tures from –60º to 250º F, and five standard colors (light blue, green, gray, red and light yellow) for part identification and inventory control. The containers may be autoclaved or x-rayed for healthcare and security use. Optional dual-purpose cov-ers protect parts, enable container stacking, and can be used as trays. LEWISBins+, 877-975-3947, www.lewisbins.com.
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Carrier divides, separates delicate componentsIdeal for use in aerospace, manufacturing and dis-tribution, the Set Top box carrier protects delicate equipment—including converter boxes and cell phones—during storage, transit and installation. The reusable carriers include dividers to separate and protect each item to reduce damage while eliminat-ing corrugated waste and associated dust. Offered in four standard sizes, the boxes range from 14 x 15 x 10 to 27 x 15 x 18 inches. Optional accessories include handles and hand holes, covers, foam cushioning, label holders and placards, or electrostatic dissipative materials. The boxes may be specified in blue, black or white. Flexcon Container, 973-467-3323, www.flexcontainer.com. POWER TRANSMISSION-PART CONVEYING
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systems. The totes’ precise dimensional consistency ensures seamless extraction, conveying and inser-tion. With a 23.6 x 15.75 inch footprint, the totes are offered in two heights: 7.8 and 11.8 inches. Straight walls provide high cubic capacity, while the units’ rein-forced bottom prevents deflection. Both internal and external surfaces are smooth for easy cleaning, and the totes resist moisture, pests, mold and fungus. They are recyclable at the end of their service life. ORBIS, 888-307-2185, www.orbiscorporation.com.
Clear bins stack, hang and organize
Autoclavable up to 250ºF and resistant to extreme cold, Clear View Ultra stack and hang bins are manu-factured from heavy-duty, high-density tri-clear poly-propylene. Molded with front, back and side grips for easy handling, the bins organize inventory with multiple large label slots. A built-in rear hanger allows the bins to be hung from louvered panels or rails. For increased bin capacity and a quick view of contents, optional clear window inserts can be added. Twenty different sizes are offered from 5 x 4.125 x 3 to 18 x 16.5 x 11 inches. Quantum Storage Systems, 800-685-4665, www.quantumstorage.com.
Containers nest and stack
Nest and stack containers save space by stacking when full and nesting when empty. Offered in a variety of materials to accommodate a range of needs, the formu-lations include resistance to chemicals, electrostatic dis-charge and degreasers, autoclavability, flame retardance, and food handling. To facilitate movement, matched dol-lies with 3-inch diameter swivel casters may be specified. Dimensions range from 25.25 x 18 x 6 inches to 42.5 x 20 x 14.25 inches and include optional lids to protect contents from dirt and damage. Molded Fiber Glass Tray Co., 800-458-6050, www.mfgtray.com.
MMH100201_prod_ID.indd 41 2/9/2010 1:05:37 PM
42 F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
Totes and containers
Bulk container holds 1,200 poundsMeasuring 40 x 48 x 45 inches, the nestable general purpose bin weighs 107 pounds with 1,200 pounds
Attached lid container for garment, parts distributionIdeal for use in garment, sporting goods or automotive parts distri-bution, the nestable DC2820-15 container is manufactured through a high-speed injection molding pro-
Intermediate bulk containersManufactured in three capacities—from 270 to 315 gallons—Caliber collapsible intermediate bulk con-tainers ship and store large volumes of dry or wet products. The units are molded of FDA-approved, food-grade plastic and have completely smooth surfaces for hygiene. To prevent cross-contamination, the containers use a disposable bag liner. Collapsible and stackable, the containers’ dimensions optimize cub-ing of rail cars and truck trailers. The unit can be top-filled and emptied with an optional bottom discharge. Buckhorn, 800-543-4454, www.buckhorninc.com.
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cess for dimensional consistency. It includes an attached, ratcheted interlocking flap lid to secure and protect contents during storage and transport. Interchangeable with containers from other suppliers, the box’s footprint measures 28 x 20 inches. When empty, the containers may be nested for maxi-mum return shipment efficiency. Monoflo International, 800-446-6693, www.miworldwide.com.
capacity. Its lighter weight permits the loading of up to 60 bins per 53-foot truckload to reduce outbound transportation costs. The unit’s walls fold down for empty shipping and storage. When upright, the sides are held secure with an integrated one-piece latch, molded into the wall. Formed through high-pressure injection molding, the containers are made of a less-brittle co-polymer polypropylene for enhanced stiff-ness and impact resistance. Rehrig Pacific, 800-421-6244, www.rehrig-pacific.com.
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Vertical storage system for tool and die useA line of vertical storage and retrieval systems is now offered as an alternative to conventional drawer, shelving and rack storage for tool and die applications. Consisting of a vertical carousel of shelves moving on a track and a vertical lift module of trays mounted on both sides of an inserter/extractor, the system automatically delivers items to the operator. Items are presented at an ergonomically positioned work counter, which eliminates walking, searching, bending and stooping. Capacities reach up to 2,000 pounds per tray with a total unit capacity of 264,550 pounds per machine. KardexRemstar, 800-639-5805, www.KardexRemstar.com.
Vertical conveyor lifts 3,000pounds 14 feet highThe V-Lifthydraulic, canti-levered vertical reciprocating conveyor lifts up to 3,000 pounds of material 14 feet high. It can be installed in a shaft or be free-standing with optional struc-tural framing. Features include 6-inch wide, flange structural steel guide columns and a hydraulic ram with 2.5-inch diameter dual pistons for smooth operation. A single-cylinder hydrau-lic system prevents twisting during operation and eliminates all moving hoses, cables and chains for easier installation, reduced maintenance and longer service life. Wildeck, 800-325-6939, www.wildeck.com.
Precise overhead handlingFor enhanced precision and opera-tor safety throughout a full range of speeds, the G-Jib incorporates the supplier’s G-Force intelligent lifting device and an enclosed-track worksta-tion jib crane. The combination gives the operator the control to finesse expensive or fragile parts. Features include an industrial processor-con-trolled servo drive system with a fixed actuator near the vertical truss of the crane. This design eliminates the deadweight of moving a hoist along the rail for easy movement and maxi-mum productivity. The system offers capacities of 330 and 660 pounds and spans of 6 to 15 feet. Gorbel, 800-821-0086, www.gorbel.com.
Enhance your lift truck fleet managementInfoLink 2.5 fleet manage-ment system transforms lift truck operat-ing data into meaningful information. New features reduce false impact alarms, deliver real-time performance indicators based on user-defined goals, and display criti-cal measurements in graphic form. Color-coded opportunity indicators provide an easy-to-monitor view of conditions in each area. These indicators show if you are meeting established goals (green), require attention (yellow), or need imme-diate action (red). To eliminate nuisance alarms from negligible impacts, the system uses an intel-ligent sensing system that combines data from the impact sensor and the truck to generate alerts about only those impacts that meet pre-defined criteria. Crown Equipment, 419-629-2311, www.crown.com.
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While it may have dropped off the front pages of the business press,RFID is enabling warehouse and DC managers to add value and streamline supply chain processes. Here are four benefits that those managers are achieving within the first year of deployment.
It was understandable from the outset why thetechnology had quickly become a “media dar-ling.” In its very basic form, an RFID system
uses an inlay—consisting of a microchip and anantenna—along with a reader to communicate dig-ital information about an object to which the inlayis attached. The Electronic Product Code (EPC) wasdeveloped to associate to that microchip and cre-ate a unique serial number to every item manufac-tured—just like the UPC in bar coding.
The ability of RFID and EPC to communicate allsorts of unique data about a product as it movesanywhere in the world made it a potentially pow-erful technology for the global supply chain. Itcertainly grabbed the attention of Wal-Mart: Thecompany issued mandates to its major suppliers toinitiate the EPC tagging of select pallets and cases.
Over the past few years, reports have been wide-spread that Wal-Mart was beginning to backpedalfrom its initial EPC initiative. John Simley, spokes-person for the retail giant, declares that thosereports are simply not true. “In fact, we continue toinvest in RFID,” says Simley. “Currently, about 600suppliers are applying EPC tags to some degree,and they are being read at five Wal-Mart DCs and
six Sam’s Club DCs—as well as at their receivingstores and clubs.”
If the Wal-Mart initiative is still going strong thenwhy aren’t we hearing more about aggressive RFIDdeployments? Mike Liard, practice director of RFIDfor ABI Research, believes that the economic chal-lenges in the last 18 months have caused manycompanies to shift IT priorities. “We’ve noticed aslow-down in the RFID marketplace,” says Liard. “Itled a few companies to either delay or maybe can-cel their projects; but not enough to cause a con-traction of the marketplace where we’ll see nega-tive growth.”
On the flip side, those who have deployed RFIDare now enjoying a quicker return on their invest-ment. Liard points out that two years ago RFIDusers reported a return on investment (ROI) periodof 12 to 18 months. Last year, he says, it was lessthan 12 months.
Why the quicker ROI?One reason for the quicker ROI is the reductionin the cost of RFID tags combined with significant upgrades in the technology. Victor Vega, director of marketing for Alien Technology, a major provider
BY MAIDA NAPOLITANO, contributing editor
R F I D
mmh.com MODERN MATERIALS HANDLING / F E B R U A R Y 2 0 1 0 45S
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SPECIAL REPORT: Warehouses & Distribution Centers
revisited
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of RFID products and services, says that there’s also sup-port from large software companies such as Microsoft and Oracle. “What this does is foster an easier interface for the user, allowing their back-end system to accept the lingo of our systems.” Add to that an open protocol adopted by companies worldwide, and costs are being driven down.
Vega recalls that, over a decade ago, first-generation contactless RFID tags were $12 each, had only 27 bits of memory, and had a “read range” of 2 to 3 inches. “Today, our latest inlays that function as engines for our Gen2 UHF passive tags (the preferred tag for pallet, case, and item-level tagging in the DC) have 800 bits of memory and can be read to a maximum of 100 feet—with each costing under a dime.”
Though Tom O’Boyle, vice president of Miles Technologies, a bar code, voice, and RFID services pro-vider, cautions that hardware and tags represent less than half of the project expenditure in a typical turnkey system. “There’s the software and other systems needed to make the data collected useful.” He’s seen turnkey systems range from under $50,000 to more than $500,000, depending upon the number of read zones, applications desired, and business intelligence needed to truly create value.
Despite the recent lull in RFID deployment and atten-tion, all of the sources contacted for this story agree that logistics and supply chain managers should keep an eye on RFID—not because they’re forced by mandates, but because of the value that can be derived from its use. Over the next couple pages we’ll discuss four key benefits that RIFD-enabled warehouses and DCs can achieve well within the first 12 months of deployment.
Four deployment benefits1. Eliminate shipping and receiving errors. Correcting errors not only cost a company thousands of dollars annu-ally, but the error itself can translate into lost sales and loss of customers. With RFID, supply chain and logistics teams can eliminate errors from receiving to shipping by automati-cally capturing accurate information through the simple act of moving product through a read zone. (See above photos.)
For example: A fixed reader can automatically retrieve data of tagged receipts and check them against an advanced shipping notice (ASN) sent by the factory. The actual receipts can then be added to the WMS inventory. After order picking, readers can validate the accuracy of the product mix that’s linked to the pallet ID without having to scan
each and every case. At shipping, a red light comes on when a material handler attempts to load a pallet to the wrong trailer.
2. Improve productivity. The efficiencies gained from not scanning can be substantial. O’Boyle describes how the workers in a chemical warehouse initially used bar code scanners to “ship-confirm” barrels of product before loading them into a trailer. A driver had to dismount his lift truck and, using a handheld mobile computer, scan the serial number and the lot number for each barrel for all 60 to 65 barrels that can fit in a trailer.
“With RFID, the company tackled two steps in one,” says O’Boyle. “As the worker transports the barrels into the trailer, readers are keeping track of what was loaded, con-firming that the correct product and quantity was shipped while grabbing the lot numbers at the same time.” The system immediately alerts the materials handler should any discrepancies occur—without the driver ever step-ping down from his lift truck. “With RFID, they were able to load 15% to 18% more trailers with the same number of people,” he adds.
Because fixed readers are stationary and have limited read ranges, providers have been exploring more mobile solutions by installing readers in lift trucks to identify the load and automatically direct the driver to the correct put-away location. The next generation of RFID-enabled lift trucks goes a step further by combining RFID data collec-tion with optical real-time location systems (RTLS) to pre-cisely record where the pallet has been put away without any operator typing or scanning the location.
3. Establish traceability. In 2004 the FDA issued a report to combat counterfeit drugs and recommended the use of bar code or RFID technology to track and trace a prescription drug’s “chain of custody” from the time a drug leaves the plant to the moment the patient receives the medication.
This electronic history of all transactions involving that drug is known as its e-pedigree. Because e-pedigree com-pliance means tagging down to the item-level, many feel that scanning each salable unit’s bar code would be too labor intensive and time consuming. “By using UHF pas-sive tags,” says Vega, “individually tagged items can be read while still packaged inside cases, thus saving a tre-mendous amount of labor at the DC.”
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A typical shipping/receiving portal (left); using RFID to validate cases to an order (center); using RFID to validate pallets to an order (right).
MMH100101SUPP_Warehse_ID 46 2/9/2010 10:39:49 AM
Although compliance deadlines have been pushedback to beyond 2010, it remains a legislation to watchbecause it will affect operations at the DC level. Accordingto Paul Faber, a principal with consulting firm TompkinsAssociates, some health care companies are already tak-ing a conservative approach and integrating e-pedigreerequirements into their planned SAP or Oracle upgrades.
The need for traceability also extends to retailers ofluxury goods that are concerned about protecting theirbrand. Alien Technology’s Vega cites an apparel companythat discovered a leak in its distribution network wheredesigner purses were being diverted to “grey markets,”or unauthorized channels. Each year, a staff of brandpolice would go out and scour the market, buying backthe purses, trying to find that leak.
By embedding the RFID tags inside the purse, itrecorded each item’s transactions through the supplychain. They then bought the purse from the grey mar-ket and brought it back to the DC where they read it anddetermined exactly which distributor leaked it. “Theyimmediately shut down the source of the problem,” Vegaadds.
4. Achieve inventory control and accuracy. By RFID-tagging product at the case level, companies achievecomplete visibility of a product’s movement from manu-facturing to the point of purchase at the retail store.Replenishment alerts at the DC can be automatically gen-erated after a specific number of RFID-tagged cartonsleave a retail store’s backroom.
In the DC, with RFID tags linked to serial numbers
48S F E B R U A R Y 2 0 1 0 / MODERN MATERIALS HANDLING mmh.com
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MANUFACTURER• Apply serial numbers• Aggregate serial numbers• Acquire e-pedigree/associate with shipping• Send ASN to distributor
RETAIL PHARMACY• Validate e-pedigree shipment
e-pedigree
National Drug Code
Manufacturer
Wholesaler
Pharmacy
e-pedigree
National Drug Code
Manufacturer
Wholesaler
e-pedigree
National Drug Code
Manufacturer
ASN
ASN
DISTRIBUTOR/WAREHOUSE• Repackage/distribute to retailers• Validate e-pedigree• Send ASN to retailer
A diagram of a pharmaceutical supply chain.(Chart courtesy of Alien Technology)
and expiration dates, workers can be directed to selectthe oldest product first. Where a specific pallet needs tobe located, the latest handheld RFID readers offer pin-point location technology—think metal detectors at thebeach—using audible and visual cues to quickly guideworkers to the desired load.
When cycle counting, instead of scanning each palletin a rack bay with 10 pallets, a mobile RFID reader couldcapture all 10 pallets in one read. Shrinkage is reduced asRFID readers can be configured to sound alarms if taggeditems are removed from storage without prior approval.
Looking to the futureRFID tags may be less expensive than they used to be, but they are still more expensive than the fraction of a penny a bar code costs. Faber agrees, “It’s not a univer-sal replacement for bar coding yet, but the ROI is there for specific applications,” says Faber.
As for Wal-Mart, its commitment remains strong and there appears to be no let up in sight. “We’re a company that never reaches the finish line,” says Simley. “There’s always another improvement or another application. We’ll keep researching and investing in EPC because it improves our inventory accuracy, improves our cus-tomers’ shopping experience, and lowers costs.” And as long as Wal-Mart stays committed, supply chain and logistics managers can be sure that RFID discussions will not disappear any time soon.
Maida Napolitano is a contributing editor to Modern.
MMH100101SUPP_Warehse_ID 48 2/9/2010 10:39:57 AM
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Modern: Congratulations on the presidency of CICMHE. But, first, we have to ask: What does discrete event simulation and computer modeling entail? Smith: We do the analysis that justifies the benefit of automated materials handling systems.
Modern: You’ve been involved with CICMHE for a number of years. What is the council work-ing on right now? Smith: One priority has been to further develop our community of academics. One project is a Web por-tal that will connect researchers and students who are interested in mate-rials handling research and education with others in the field around the world. We want to provide a forum that encourages free and open com-munication among researchers and students. That will expand the body of people doing research in the area.
Modern: What is the state of materials handling education today? Smith: We’re at a crossroads in terms of materials handling educa-tion. You have to have research money to have research projects, and materials handling suffered from a lack of funding in the 1990s. That
led to a drop in the number of fac-ulty members with research projects. MHIA recognizes the problem, and has sponsored several competitions for research projects. They’re rela-tively small, but they’re important because they’ll have visibility in the research world. We hope that will attract more funding and graduate students.
Modern: What can the industry do to promote education? Smith: If you want materials handling research at the university level, you need funding. One of the things we’re interested in at CICMHE is to identify and do a case study on a company where materials handling has made a difference at the executive level. We think that would have a high profile.
TITLE: Professor of industrial and systems engineering, Auburn University; president, College-Industry Council on Material Handling Education (CICMHE) LOCATION: Auburn, Ala.EXPERIENCE: 18 years as a faculty member PRIMARY FOCUS: Discrete event simulation and computer modeling
Jeff Smith
Auburn University
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